CREE and VECO taken to the WOODSHED!

It was only 2010, when CREE and VECO were high flying stocks. It seemed like both these companies were going to take advantage of the huge demand for their LED products, among other things. There were multiple $100+ Price targets on CREE , and VECO started looking more and more undervalued. Fast Foward a year, to 2011, and you have 2 stocks beat to heck on lower demand,  and lower margins.

CREE reports earnings After hours today, and is expected to show an EPS of .26 on 310 million in revenue for Quarter 2. Higher revenues over the year over year quarter, but 50% less profit. Most analysts still hold CREE in high regards, but it is very hard to see the share price move up, when the growth in earnings is not there.

Was quarter 2 the start of a turnaround for CREE? We will find out this afternoon, and are playing VECO calls in anticipation of a possible beat and rosy forecast.

We brought the VECO JAN $24 calls to the chat room at .35.

Happy Trading!!!


JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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