Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: LED maker Cree (Nasdaq: CREE ) had the lights go out today, with shares falling 15% after the company released earnings.
So what: Cree hit the reverse trifecta today, missing on revenue, earnings, and giving weaker-than-expected guidance. Weak demand in China was the main cause, as new regulations put a damper on demand and inventories built up at distributors. Check out the numbers here.
Now what: Cree has been on such a growth spurt that when it hits a bump in the road, shares will take a tumble much like we saw today. Conditions aren't likely to get better until the fiscal fourth quarter when Chinese demand picks up, and I think shares will continue to be weak in the short term as investors lower expectations. If shares pull back further, I see this stock becoming a real value for long-term investors looking for a growth stock at a decent price. The company has $1.11 billion of cash, and the emerging LED lighting market is still picking up steam -- just not enough to save the day today.
Interested in more info on Cree? Add it to your watchlist.