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No. of Recommendations: 4
Cree's earnings are out.

Look's tornadoish to me. Quarterly earnings:

Q4 1999 - $4,108,000
Q1 2000 - $4,636,000 12.85%
Q2 2000 - $5,784,000 24.76%
Q3 2000 - $9,155,000 58.28%

Tinker's Gorilla Report last December

From SI in Feb.
The tornado last quarter:

Value Chain:

Mike Buckley's thoughts in Feb:

Q: What does the technology (the product) do?
A: One produces SiC. Another produces devices made from SiC. (Remember: break it down to those simplest of terms! Try to keep all answers to three- or four-word sentences!)

Q: Is the technology proprietary?
A: Yes.

Q: Is the technology open?
A: Yes.

Q: Are there high switching costs?
A: I haven't gotten that far. I'm only a freakin' carpetologist! But I suspect so.

Q: Has the value chain formed?
A: Probably not. It appears to be coming together in the product of blue LEDs more than other products.

Q: When looking for a tornado, what is the constraint that has kept it from forming?
A: Capacity.

Q: What's going to eliminate that constraint?
A: Increased manufacturing capability.

Q: Why will manufacturing capability increase?
A: Factories are being built. Licensing the manufacturing technology may add more capacity.

Q: When is that likely to happen?
A: Probably late this year or sometime next year.

My attention has been grabbed, now it's time for me to answer these questions for myself.

John M
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