NEW YORK ( TheStreet) -- If you missed the chance to buy into LED stocks on Friday before the big pop on news from China that the government would phase out incandescent light bulbs in favor of LEDs, don't kick yourself: You're probably lucky unless you planned on flipping the gains in less than 24 hours or holding the stocks until 2015.
An official with China's National Development and Reform Commission announced in China Daily that importation and sales of incandescent light bulbs of 100 watts and higher will be banned as of Oct. 1, 2012, while bulbs of 60 watts and above will be phased out by Oct. 1, 2014.
The sell side followed with encouraging commentary -- Piper Jaffray saying that the news was a positive for LED maker Cree (CREE) and Deutsche Bank putting out word that the Chinese plan was going to be a boon to equipment makers in the LED space, like Veeco Instrument (VECO) and Aixtron (AIXG).
Cree is up 8%, while the equipment makers Veeco and Aixtron are up 10% on Friday. SemiLEDs (LEDS), one of the worst IPOs in recent market history -- thank you underwriters Bank of America Merrill Lynch, Barclays Capital and Jefferies -- skyrocketed by 33% on Friday, up to $3.94(!) -- this stock was trading at $30 shortly after its IPO in December 2010.
|China's LED policy announcement will be a boon to LEDs ... in 2014.|
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