It was December 21 when we last spoke of Cree (CREE :NASDAQ) benefiting from the 2012 100-watt incandescent bulb ban announcement.
Since then, the ignored, under-the-radar $2 billion gem has run from a $22.45 low to more than $28, thanks in part to American Technology Research CEO Richard Prati. Reportedly, the CEO radiantly reviewed Cree during a CNBC interview, saying the company’s LED technology would grow “astronomically” in upcoming years.
The CEO even believes that LED technology will proliferate like Internet companies did in the 1990s; that LED can save consumers up to 90% on energy bills; and that its “positive environmental reputation” will attract consumers.
Even Amtech has a new “buy” rating on the company with a $55 price target, a 145% potential move off the $22.45 low.
They may be late to our party, but they’ve got it right.
Sure, you’ll come across the editorial naysayers who’ll try to bring it down. But we’re talking about an LED market with 388% growth potential. This is a market expected to exceed $1 billion by 2011, a 388% jump from the 2005 market value of $205 million.
We’re not the only ones that see the LED potential.
Walt Disney World changed over to LED, wiring Cinderella’s Castle with more than 20,000 LEDs and saving thousands of dollars.
The Times Square ball, fully lit with LED lighting, was twice as bright and used half the energy.
The city of Boulder, Colorado is switching to LEDs for its Downtown Pearl Street Mall.
Royal Philips Electronics is aware of the potential, announcing it was buying Genlyte for $2.7 billion as part of its LED company-buying spree as it strengthens is energy-efficient lighting business.
The growth is there, my friends. You just have to pick up LED-related stocks early and cheaply enough before the Internet-type 1990 run begins. Along with CREE, we’d recommend picking up Lighting Science Group (LSGP.OB).
Pure Energy Stock Trader bought shares of CREE at $22.45 only to watch it soar north of $28 for a 25% gain, as well as the CREE June 2008 25 calls (CQRFE), which soared 119%. They’re still holding with a near-term $35 price target.
Ian L. Cooper
http://www.energyandcapital.com
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