Cree Shares Popped: What You Need to Know

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: Shares of Cree (Nasdaq: CREE  ) , a specialist manufacturer of LED lighting materials, rose more than 10% in early trading before closing up just under 5%.

So what: Far as I can tell, there were no material events lifting Cree's stock today. But comments from Evan Bauman, portfolio manager of the Legg Mason ClearBridge Aggressive Growth Fund, may have had an impact.

Now what:  In an interview, Bauman told TheStreet.com's Gregg Greenberg  that a global shift away from incandescent lighting toward LED alternatives is just getting under way and that Cree -- whose chips and lighting components are widely used -- stands to reap the windfall. Do you agree? Disagree? Let us know what you think using the comments box below.

Interested in more info on Cree?Add it to your watchlist.

Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.

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Read/Post Comments (5) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 28, 2011, at 6:37 PM, robertvince wrote:

    I aCree !

  • Report this Comment On July 29, 2011, at 10:15 AM, plange01 wrote:

    cree is a great buy and will soon return to the $50 where it was just a few months ago and still far off its recent highs

  • Report this Comment On July 29, 2011, at 11:17 AM, phil2331 wrote:

    This is the only 'green technology' that pays for itself both in energy savings and reduced maintenance costs(re-lamping and changing lightbulbs). Thousands of companies build luminaries for LED lighting, but only few who can supply the highly efficient, high brightness LED's. Furthermore, the LED efficiencies will only go up, so the payback will only become more attractive. Many of the LED bulbs at the big box stores are have very miserable efficiencies, sometimes half the efficiency of a Cree LED. This stock is at the center of a 'disruptive' technology. The long term game will be all about LED efficiencies.

  • Report this Comment On July 29, 2011, at 3:37 PM, troym72 wrote:

    I think CREE is definitely position to reap rewards from as the consumer and industrial areas move more toward LED lighting. However, this is going to happen SLOWLY. Its not cost effective to rip out all your incandescent and fluorescent lights and replace them with LED, trust me, I already checked. New construction will, however, start to feature more and more LED lights over incandescent and fluorescent. The only risk to CREE is that the huge lighting companies like Philips and GE are going to want to get on board the LED move and will be competing with CREE with probably cheaper, albeit, lower quality products. So, CREE needs to build its brand ahead of the curve to make people think LED and CREE are synonymous.

  • Report this Comment On July 29, 2011, at 3:58 PM, brightgreen wrote:

    The benefits of CREE LED lighting are too numerous to discuss on this board. The upfront costs are the big barrier to entry and we are able to provide zero down financing to allow for businesses to start reaping those benefits immediately. Please contact me if you would like to switch over to LEDs.

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