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"Weakness after hours tells me there might be some concerns about margin guidance...."

Here is my reponse to a similiar post on the Yahoo site:

There was NO warning about slowdowns but the possibility of gross margins moving down a bit (note: possibility yet it's also possible there will be no downward movement and therefore no long term concern on this issue) due to the new HB product introduction in January and moving out older LEDs. ASPs have declined somewhat (not due to competition but due to large contract discounts) over the last few months but these declines have been offset by continued higher revenues, cost reductions, and production efficiencies hence gross margins have stayed at the 55% level.

Having owned CREE now for almost 2 yrs and listened to the last 4 CCs the constant theme here is high dbl digit revenue and eps growth, higher gross margins, cost reductions, production efficiencies, new product development/introduction, and management focused on satisfying customers as they execute their business plan.

So I just shake my head when I read about what CNBC reports, or the after hours quotes, or the sequential revenue not being enough. Man, the markets are out of wack. Fear and panic seems to be the norm and the facts don't matter anymore.

Well, they matter to me. And if this puppy is going down tomorrow I'll take some shares. Hell, I may take some shares no matter what.

Time for bed,

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