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No. of Recommendations: 6
One thing in regard to Citrix and its comparison with CREE.

On the L'union board we discussed at length how we saw, quarter after quarter, the financial metrics of Citrix deteriorating. It wasn't just one metric but several. Slowing revenue growth, rising inventories, rapidly rising flow ratio, declining margins, etc.

But many of us stuck by the stock (although I had dumped it for other reasons a few months earlier) due to confidence in management. Lesson learned. Know your financial metrics and follow it.

This is not the case with CREE. CREE is not even close to the position that Citrix was in. When it gets there I'll be the first one to scream fire.

Til then, buying some more and will just have to live through some volatility. Heck, this is nothing. I bought LEAPS in Rambus in that was volatility. This here is just a pot hole on an otherwise smooth country road.

The way the stock price moves can sometimes tell you about the underlying fundamentals of a stock. When it falls on high volume give it a close examination. But if all fundamentals turns out A+ - then it is a buying opportunity. Also remember it is the summer and tech stocks, despite this early summer rally, do tend to drift below their fundamentals in the summer.

Still haven't seen any smoke much less fire around the CREE story.
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