Cree (NASDAQ: CREE) Former Tech Highflyer Looks Like a Screaming Bargain

I'll bet Charles Swoboda would like Wall Street to make up its mind. Over the past few years, the investment community has repeatedly shifted its view of his company, Cree (NASDAQ: CREE).
Four years ago, many were convinced that Cree was on the cusp of explosive growth thanks to its strong position in the LED market. Shares briefly moved above $70 in December 2010. Yet, investors soon soured on the stock after realizing that, while the LED business would indeed be huge, it was not necessarily very profitable. Within a year, shares plunged to just above $20.
Then, a string of good quarters pushed CREE right back up to its prior highs by summer 2013. But once again, shares are in freefall, recently touching a 20-month low.

To be sure, it was never clear that this stock deserved to trade above $70. As I noted roughly a year ago on our sister site, StreetAuthority.com, "Analysts have been continually forecasting margin gains as Cree more fully utilizes its manufacturing capacity, but so far, that's just not happening."  (more)
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