Seeking Alpha

Cree higher following M&A rumors

  • Vague M&A rumors are giving a lift to Cree (CREE +4.3%). Shares are at their highest levels since tumbling in April due to light EPS guidance.
  • Speculation that GE or Philips could bid for the LED lighting/component vendor has been around for years. ~10% of the float was shorted as of May 30.
Comments (7)
  • Patent News
    , contributor
    Comments (1404) | Send Message
     
    doubtful!! and after years.. why would they do it now?
    13 Jun 2014, 12:40 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (2159) | Send Message
     
    Cree's bulbs and technology are the best, and both of those companies see the opportunity--that would be my guess. Cree's bulbs are market leaders in light, quality, efficiency, and price--game changing bulbs. I don't think a lot of investors understand what is under the hood, but I can guarantee you GE and Phillips do. Cree's fabs avoid dependence on sapphire, too. I doubt GE or Phillips could build them for what they could buy Cree for, and they get the business to boot!
    13 Jun 2014, 02:12 PM Reply Like
  • pffler
    , contributor
    Comments (2) | Send Message
     
    Doubtful? Let's see...$1.2BB in cash, pristine balance sheet and the best pure play company in this 'disruptive technology' field. Truthfully, why "wouldn't" GE or PHG want to own CREE? Lucent and any number of other telecom players had a chance to buy out QCOM back in the early ascendant days of CDMA and they never pulled the trigger. With a whole universe of poorly managed, 'on-the-road-to-oblivion' companies to short, why would any reasoned investor want to pick a fight with CREE. Long CREE.
    13 Jun 2014, 02:03 PM Reply Like
  • 900Psychic
    , contributor
    Comments (2) | Send Message
     
    CREE is a technology leader but lacks the marketing presence (It seems that HD is bullying them). Merger could be a win-win.
    13 Jun 2014, 02:10 PM Reply Like
  • wrscomncents
    , contributor
    Comments (671) | Send Message
     
    I don't know if HD is bullying them but if you have been to a Home Depot lately Cree is getting the marketing presence big time from Home Depot. Cree bulbs are on display and well advertized. Home Depot has over 2000 stores world wide. That is a huge presence.
    15 Jun 2014, 09:03 PM Reply Like
  • wrscomncents
    , contributor
    Comments (671) | Send Message
     
    I bought my first home use LED bulb this week. I bought the new Cree 3 way LED bulb. The bulb performs just as advertised. I paid $21.97 at Home Depot. I have to say that I was a little disappointed at the way Home Depot displayed this new bulb. After walking around looking for it for sometime I finally asked a clerk if they carried the bulb. He then walked me to a small display in the middle of the isle which was hardly visible. This bulb should definitely be on an end cap on display. I think it would sell well. The stats on the bulb are 30/60/100. The watts used are 3/8/18. There is a 10 year warranty on the bulb. The bulb puts out a soft white color and there is a very noticeable change in the different light settings. If you did not know it wasn't an incandescent you could not tell the difference.
    30 Jun 2014, 08:48 AM Reply Like
  • Raymond33
    , contributor
    Comment (1) | Send Message
     
    I heard a presentation by a Cree VP last week who said that Cree products recently became the largest selling item in Home Depot stores. (I don't know if that was by total dollar volume or unit volume, but I assume he meant dollar sales volume.)
    30 Jun 2014, 01:53 PM Reply Like
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