Is Now the Time to Buy LED Stocks? (CREE, RBCN, VECO, AIXG)

Despite reporting strong Q2 earnings report, LED stocks have largely been on the retreat ever since, until a recent rally today.

For those unfamiliar with LEDs, they have several advantages over other lighting sources, with the two biggest being efficiency and longevity. LEDs use much less electricity than incandescent bulbs, which generate a lot of heat because the filament must be warmed up to produce the light. Cree says its LEDs use only 10-15% of the power of an incandescent bulb, and about half the power of a fluorescent bulb.

There are several ways to play the LED sector:

In a series of recent reports on the LED sector, BullMaket.com answered the following questions.

– What are the biggest issues that have weighed down LED stocks recently?

– What is the bullish and bearish case with Cree? Why is Cree largely not affected by many of the near-term pressures some analysts have cited in downgrading stocks in the LED sector? Should investors be taking advantage of the recent weakness in Cree to buy the stock?

– How does Rubicon’s business differ from Cree’s? Can Rubicon overcome increased substrate capacity coming online in the next few year years? Is the stock oversold?

– What does the outlook for LED equipment manufacturers Veeco and Aixtron look like? Where are the companies expected to see much of their growth? Is the equipment cycle peaking? Which stock does BullMarket.com think is the better investment and why?

Tags: AIXG, CREE, RBCN, VECO