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.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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