Heavily-shorted Cree (CREE +5.4%) is rallying for the second day in a row after announcing a...

|By:, SA News Editor

Heavily-shorted Cree (CREE +5.4%) is rallying for the second day in a row after announcing a low-cost LED streetlight solution. Today's move comes in spite of bearish commentary from Raymond James: while the firm expects Cree to post FQ3 results on April 17 that are roughly in-line with guidance, it thinks investors are too optimistic about the company's operating leverage, and doubts its gross margin, which stood at 35.3% in FQ2, will ever return to the mid-40s.