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4-Traders Homepage  >  Equities  >  Nasdaq  >  Cree, Inc.    CREE

Analysis summary4-Traders Strategies 

End of the technical recovery

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11/09/2012 | 03:13pm
Opinion : Bearish under USD 32.1
Target price : USD 28.6
Stop loss: USD 33.8

The share is meeting an important level. We suggest caution because this point could stop the bullish trend.

From a fundamental viewpoint, firstly, we note the high valuation of the company. PER for the current year is at 46.44x and expected at 26.93x for next year. With a valuation ratio of 2.2x, the group appears overvalued compared to its business activity.

From a technical viewpoint, the proximity of the USD 32.1 medium-term resistance limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.

The graphical configuration argues to establish a short position at the current price. The end of the technical rebound, the consolidation phase and overbought situation, there are all the characteristics for short selling. The first objective will be fixed near the USD 28.6 short term support and by extension the USD 22.8 area. This strategy should be protected by a stop loss above USD 32.1.

Cree, Inc. : End of the technical recovery

© Zonebourse.com 2012
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Develops and manufactures semiconductors and related devicesCree, Inc. operates as innovator of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications.It operates through the following segments: LED Products,... 
08/22Earnings Release
More about the company
Financials ($)
Sales 2017 1 429 M
EBIT 2017 15,4 M
Net income 2017 -92,5 M
Finance 2017 263 M
Yield 2017 -
P/E ratio 2017 -
P/E ratio 2018
EV / Sales 2017 1,47x
EV / Sales 2018 1,33x
Capitalization 2 366 M
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Chart CREE, INC.
Duration : Period : Day
Cree, Inc. Technical Analysis Chart | CREE | US2254471012 | 4-Traders
Duration : Period : Week
Cree, Inc. Technical Analysis Chart | CREE | US2254471012 | 4-Traders
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