(Cree, LED winners story, updated for close of market, analyst commentary)
NEW YORK (TheStreet) -- Shares of LED lighting market leader Cree (CREE - Get Report) are having their most bullish day since a recent big earnings disappointment, passing the $53 mark. Cree shares ended trading on Thursday at $53.56, up 4.4%.Cree hadn't been above $53 since its earnings led to a steep decline in shares on Jan. 18, down below $53 from $63.
LEDS - Get Report) also disappointed Wall Street in its recent earnings, and shares of the recent IPO company have fallen by 40% year to date. SemiLEDs pointed to pricing pressure in the LED market in its earnings report. Several LED market analysts told TheStreet that Digitimes LED sector growth projections are best viewed as "hit or miss." The latest report quoting the 500,000-unit figure was attributed to "industry observers." Hans Mosesmann, analyst at Raymond James, described the Digitimes report as "pretty noisy." However, the Raymond James analyst, who has been more bearish on Cree than most of the analysts covering the company, said the more important point is that the argument being made that a large part of the Chinese street lamp business will automatically go to Cree is flawed. Mosesmann contends that the Chinese street lamp business will go to native players and the more standards get delayed, the better the local players will be able to meet new specifications.
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