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No. of Recommendations: 2
<didn't we just have a break out? Why was that not successful
and the next one would be?>


It would seem that when companies with a short term overbought price come out with earnings on the low end of the scale, and then announce that their revenue growth is going to be slower than expected for the remainder of the fiscal year a sharp correction is the result.

I see no reason why the next breakout couldn't have similar results if an unexpected negative event were to befall Cree. For example, Leons fear that Cree might take a writedown of the goodwill purchased from SPCT. While some people don't think it will happen, it's certainly within the realm of possibility. However, the general consensus is that the revenue forcast for the next six months was the real culprit in this pullback.

Personally I feel Cree's future is brighter than ever. While I am extremely overweighted in Cree, if it pulls back to $15 in a down market I'm buying more.

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