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Technology Stocks : Cree Inc.
CREE 63.60+0.6%Oct 30 4:00 PM EDT

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From: slacker71112/2/2019 7:28:02 AM
2 Recommendations

Recommended By
Lou Weed

   of 10250
This is a fantastic overview of Cree with details directly from Lowe.

IMO, the LED business is being geared up for a sale. There is no reason to keep it once they have transitioned to relying on external sapphire substrates. In three years, we will likely own shares in a company called Wolfspeed with the Cree brand name going in the sale.

Lowe, for his part, said that the adoption rate for SiC within base stations "certainly goes above 50%" as the market transitions from 4G to 5G.


Given this strategy change, which eliminates a historical synergy between LED business and Wolfspeed, is Cree open to selling its LED component ops the way that it sold its LED lighting business? Lowe wouldn't say that. Rather, he talked up the value of the strategy change, arguing that it will help the LED business "become more nimble," improve its cost structure and eliminate manufacturing overhead that would compress margins during a downturn.
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