No Reason For This Selloff....It was A Strong Quarter...1 Billion in Cash and No Debt
Cree's product innovation has opened new applications and improved LED payback, in turn driving demand for its products. The company remains committed to driving LED adoption and closing down the gap with conventional lighting through innovation. In the long run, it aims to drive mass LED adoption and achieve 100% upgrade to LED lighting by its customers. Closing fiscal 2013 with more than $1 billion in cash and no debt, it has a strong balance sheet, which gives it the ability to invest in growing its business and respond to new opportunities in the market.
The stock got to far ahead of itself so it was expected to see it drop to more reasonable levels. The question now is... will CREE deliver or beat on their forecast for next quarter or will they miss. They have a very spotty record and with LED lighting now clearly heading into the mainstream management needs to deliver steady and sustainable growth.