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Cree rallies on new LED bulb launch, Sterne Agee note

  • Cree (CREE +4.8%) asserts its new TrueWhite Series LED bulb offer an unmatched color rendering index score of 93. A 60W-replacement bulb will sell for a relatively steep $19.97. (PR)
  • Meanwhile, Sterne Agee says Cree is set to sell a 3rd-gen A19 LED bulb through Home Depot that will have superior gross margins (reportedly in the mid-20s) than the current A19 bulb.
  • Cree shares were crushed last month after the company provided light FQ1 guidance to go with mixed FQ4 results, and reported its FQ4 lighting products gross margin fell 550 bps Q/Q in FQ4 to 25.1% thanks to the launch of cheaper LED bulbs such as the A19.
Comments (4)
  • Is "light FQ1 guidance" a pun? :-)

     

    More seriously, who is willing to pay $20 for a light bulb?
    10 Sep 2013, 11:09 AM Reply Like
  • Actually quite a few will pay that much. It is not going to replace the typical $2 fluorescent light used in many places, but in some applications, such as utility lights, lights that are difficult to service, lights in severe vibration or environment locations etc etc they are probably the best choice. Nearly all new traffic signals are LED.
    10 Sep 2013, 11:19 AM Reply Like
  • Just bought 10 for my house. It will pay for itself, long on LED due to payback. Long on Cree. Long on renewable energy. A revolution is coming. Think industrial revolution. Think oil revolution. A paradigm shift to clean green energy
    10 Sep 2013, 05:56 PM Reply Like
  • The LED bulbs are the wave of the future.. No mercury contamination like cfl's and they last about 30,000 hrs. Not to mention they use less energy. Be smart and switch to these.
    There will be a major mercury problem years from now as people dump their old cfl's.
    10 Sep 2013, 12:38 PM Reply Like
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