From Forbes (emphasis mine): Cree Buoyed By GE Buyout Rumors, Again Carl Gutierrez, 09.19.07, 3:30 PM ET Renewed rumors that General Electric might purchase Cree have, once again, sent shares of the latter firm higher. In early-afternoon trading Wednesday, Cree rose 6.8%, or $1.98, to $31.20 on fresh speculation that General Electric would buy the LED chip maker. LEDs, or light emitting diodes, are seen as the future on the lighting market, which remains dominated by incandescent light. Many analysts believe LEDs will eventually displace incandescents for several reasons, including superior energy efficiency and longevity. Wednesdayâs moves are effectively a repeat of August 31, when unsubstantiated GE buyout talk lifted Cree 9.5% to $26.60 (See âRumors Of GE Buyout Lifts Creeâ). Present rumors aside, Morgan, Keegan & Company analyst Harsh Kumar believes Cree will eventually be bought, either by GE, or another firm. As the only publicly traded U.S. company with the technology for making LED lights, Kumar sees Cree as a âgateway stock,â meaning that as the industry moves in a certain direction, Cree has the technology to lead the way. American Technology Research analyst Andrew Huang said that if GE hopes to remain in competition with Amsterdam-based Royal Philips Electronics, buying Cree is a logical step. On Monday Amsterdam-based Royal Philips, the worldâs largest lighting company, completed a $731 million acquisition of Color Kinetics, a digital lighting maker. Huang noted that over the past two years, Philips has made a string of acquisitions in the LED market. "We believe the trend clearly illustrates Philips', and our view, that LED lighting will eventually replace all sources of lighting," Huang said. Kumar pointed out that with a price-to-earnings ratio of 40.37, Cree might look expensive, but is in-line with other so-called "green" technology firms.
Nothing like being " green " eh TD? The pre market was fierce today on Cree bounced around between $32.66 and $34.65 a $2 swing should we take out that pre high today and print $35 all those options will be just about to be in the money.... which means if this accelerates into triple witch for the buyout over the weekend.... I'm a seller at $42 I think. ~stoney
Ya man, sold some in pre at 34, just bought 'em back at 33. 35 tomorrow would be nice, then Merger Monday?
Hot damn you know I got to bang this thread when the stk closes the way it is doing today! CREE runs to new session highs tagging 34.50 +$2.49!! 3:45 and counting.....