This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

LED Stock Outlook 2011: Digging a Hole to China?

Stocks in this article: AIXG VECO

NEW YORK ( TheStreet) -- It's been a difficult week for Veeco (VECO) and Aixtron (AIXG), the makers of core equipment in the LED market.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Veeco shares are down 15% through midday Friday, and Aixtron shares are down by roughly half that amount. All it took was a downgrade from Citigroup -- based on fears that the Chinese subsidy support for the equipment makers' sales will be cut off -- to send the stocks down early in the week.

The LED equipment stocks tanked again on Thursday afternoon, though, after a Chinese newspaper quoted an official from Yangzhou as saying that the subsidies will be cut as of July 1, 2011. The Chinese press report also quoted the Citigroup analyst.

Between Citi and the Chinese region where the LED subsidies first began, the LED equipment makers can't catch a break. On Friday, Aixtron shares continued sliding, while Veeco share bleeding stopped after its 15% loss for the week.

That said, several LED stock specialists say that all the focus on the China subsidy issue, particularly as it only focuses on one city in China, is missing the forest for the trees when it comes to analyzing what will make or break LED stocks in 2011.

For one, Mark Miller, LED analyst at Noble Financial, noted that several Chinese provinces had previously indicated plans to cut the LED subsidies for equipment purchase in the third quarter 2011. The quote from the Yangzhou official in the Chinese press, therefore, was stating a fact already expected.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs