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: Two days after suffering a string of analyst downgrades, Cree (Nasdaq: CREE) took another beating, falling 12% after issuing worse-than-expected guidance for the current quarter.

So what: Cree and peer Veeco Instruments (Nasdaq: VECO) together took the brunt of Wall Street's bearish calls, which were based on overcapacity and poor pricing trends. Now it seems those fears have been realized.

Now what: In a statement issued yesterday, management told investors to expect $0.25 to $0.28 a share of profit -- well below the $0.34 analysts were calling for. Meanwhile, the sell-off has cut the stock to the point where Cree now sells for less than the long-term earnings growth analysts expect. Is that an opportunity? Or do you expect Cree's uninspiring growth trends to continue? Please weigh in using the comments box below.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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