Companies in the high-technology industry must innovate constantly in order to stay competitive. Right now, a predictable turn of events is unfolding: an industry pioneer has posted very impressive growth. Heavy competition ensued, crimping growth and profit margins, forcing the company to refocus its game plan to remain on the leading edge. And now that things are turning around, it spells real opportunity for investors. This is precisely what’s happening with Cree Research (Nasdaq: CREE). Cree grew hordes of fans when sales of its light-emitting diode (LED) lighting products began… Read More
Companies in the high-technology industry must innovate constantly in order to stay competitive. Right now, a predictable turn of events is unfolding: an industry pioneer has posted very impressive growth. Heavy competition ensued, crimping growth and profit margins, forcing the company to refocus its game plan to remain on the leading edge. And now that things are turning around, it spells real opportunity for investors. This is precisely what’s happening with Cree Research (Nasdaq: CREE). Cree grew hordes of fans when sales of its light-emitting diode (LED) lighting products began to surge in mid 2007. But growth and profit in recent quarters has slumped and the company is now saddled with many detractors. The good news is clear catalysts are in place to win back the hearts of currently dubious investors. An impressive stretch of sales growth has come to an end Cree has poured massive sums into research and development (R&D) efforts to establish a leading position in LED lighting, which is more energy-efficient than standard forms of lighting. These lights used to be too dim for many industrial applications, but with… Read More