Markets will rally from Obama speech(sounded good), and cost savings from cheap oil til mid summer.
Sure they have award winning bulbs being the most advanced and efficient. The question is, how are they going to convince customers to recognize that and buy at the given price. How do they differentiate their product from the (made in China) competitors, who may be selling more, cheaper.
I'd say after the next earning report that will be the floor for the stock price assuming the overall market doesn't crash.
Good products don't always lead to good profits. My question is how do you convince a shopper to pay more to buy a bulb that will last 20 years as opposed to Chinese bulb that may last a few years. Does Cree have a money back or replacement guarantee if it doesn't last a certain period of time? After all retail customers are paying a premium. If they put the UPC code on the bulb then they would know exactly when it was purchased.
I'm sure most that sell now are in the red, but they would never come on here and say they have a loss. Based on their favorable debt level, and cash holdings I believe time is on their side to get their profit margins going. Just hope they don't wait to long or the owners of the company(stockholders) will drop the price further. Was surprised that their stock buybacks seem to have no effect on price.
Cheap oil is GOOD for the economy. Companies produce their products with less costs. Consumers buy their products a lot more readily because they have more money to spend. People argue that low oil causes deflation. I dont agree. I don't see any big price drops based on cheap oil. But if oil were to go up by the same percentage that it went down inflation would be much more apparent.
China has to keep their economic growth high to get people to move into their massive ghost cities. They need to fill in their empty space, or else buildings there will rust in a state of total disrepair. Looks like they bet the farm... for the empty city.
Just as I predicted a while ago. Marvel was Stans legacy. He should have stayed there instead of starting something new(POWN), where he can't complete any revenue generating projects.
Was wondering why the repurchase program had no effect on the stock price. If this was near the highs it wouldn't be so bad. They have no conscience for shareholders.
Yesterday I saw gas price at 2.89/gal. How low will it go. I say CVX back up, or look at DIG.
You have to look at it like commodities are essential for countries like China who absolutely demand all they can get. China takes a long term view to buy all they can to satisfy their massive economy. Populations continue to go up, middle class continues to expand in emerging markets. NMM is committed to the current div until at least the end of 2015. They pay a good div to wait.
In my opinion I think they just got ahead of themselves with the LED bulbs being in one retailer. Maybe they should broaden their appeal to the low cost consumers, and at the same time push their energy efficient technology for other applications that demand, and require it. This would get the best of both worlds.
I imagine you wont pay more then you have to for a bulb, just like some Cree shareholders(insiders?) today wont hold their shares longer then they have to. Both want money in their pocket now, and not wait years from now to see the returns.