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[Edward Wesolowski <ids AT idisplay.com>]

FYI:
Below is N&O business reporter David Ranii's reply to my forward of Thomas 
Beckett's posting (see way below) last week. Truthfully, for me the stock 
market is in the "stun an ox at 500 yards" category. But since I tended to 
agree with Tom's posting, I was curious.
Ed Wesolowski
edwes AT idisplay.com
919-960-0023
========================================

From: David Ranii <dranii AT nando.com>
To: Eudora::Edward Wesolowski <ids AT idisplay.com>

Subject: Re: Cree expectations
Date: 4/23/01 11:03 AM

I agree that expectations for Cree are sky high and, frankly, I hate the
whole expectations game on Wall Street. But that's reality. And so is
the fact that, when Cree announced it wouldn't meet expectations last
month, the stock plummeted 30 percent. I would argue that the market has
punished Cree, and that I've reported on it. I also quoted several
people who are bullish on the stock as well, as well as a short-seller
who is negative on the stock. Which is part of my job. I also tried to
put into perspective that Cree is quite profitable, still growing fast
even with the downturn, and that the stock is up recently.
Edward Wesolowski wrote:
> I don't know if this was already forwarded to you, but the following was
> circulated in a listserv I belong to. I wasn't the author of the posting,
> but I did share the concern:
>  >Why is the press punishing Cree?
> Don't get me wrong, I'm not busting on anybody here. My view is really
> objective. I did have the sense that expectations were pretty high for
> Cree, tho. Is this true?
>  >>Check the last sentence of the following paragraph from the N&O:
>  >>A new chief executive. A slowdown in growth. A slumping stock price. >
>  >>An unconventional strategy to reinvigorate the business. Combine all
>  >>of these and you have a company -- semiconductor maker Cree -- at a
>  >>crossroads. The looming question is whether Cree, which has grown from
>  >>$7.5 million in revenue seven years ago to $108.6 million last year and
>  >>an anticipated $175 million-plus in the current fiscal year, can recover
>  >>from a modest downturn and get back on the fast-growth track.
>  >Growth from $7.5M to $108.6M in seven years is something like a 46%
>  >growth rate. And from $108.6M to $175M is around 60%. How is it that 
> they're
>  >not on the fast-growth track? Why is the press punishing Cree?
>  >For purposes of comparison, Wal-Mart's growth rate in the 80s and
>  >90s was in the 35% range.

--
David Ranii
The News & Observer
Phone: 919-829-4877
Fax: 919-836-2840
E-mail: dranii AT nando.com


Ed Wesolowski
edwes AT idisplay.com
919-960-0023

I don't know if this was already forwarded to you, but the following was 
circulated in a listserv I belong to. I wasn't the author of the posting, 
but I did share the concern:
> Why is the press punishing Cree?
Don't get me wrong, I'm not busting on anybody here. My view is really 
objective. I did have the sense that expectations were pretty high for 
Cree, tho. Is this true?

> > Check the last sentence of the following paragraph from the N&O:
> > A new chief executive. A slowdown in growth. A slumping stock price. >
> > An unconventional strategy to reinvigorate the business. Combine all of 
> > these and you have a company -- semiconductor maker Cree -- at a 
> > crossroads. The looming question is whether Cree, which has grown from 
> > $7.5 million in revenue seven years ago to $108.6 million last year and 
> > an anticipated $175 million-plus in the current fiscal year, can recover 
> > from a modest downturn and get back on the fast-growth track.
> Growth from $7.5M to $108.6M in seven years is something like a 46% growth 
> rate. And from $108.6M to $175M is around 60%. How is it that they're not 
> on the fast-growth track? Why is the press punishing Cree?
> For purposes of comparison, Wal-Mart's growth rate in the 80s and 90s was 
> in the 35% range.