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No. of Recommendations: 11
Hello Creeheads,
I was looking over posts on this board from last earnings season. I don't know if we have discussed this yet but what happened this quarter is almost exactly what happened last quarter. Great earnings... positive conference call and then one little comment by the CFO that the press runs with and the stock price tanks. Last time it was a comment about sales growth. This time it's gross margin. Here's the notes from ZaksDad from the last conference call.
http://boards.fool.com/Message.asp?mid=13016075

It's interesting that ZaksDad called Cynthia Merrell's comments "the greatest part of the call".

Because later Tinker thought that those comments were why we sold off.
Here's some comments from Tinker about what caused the sell off.
http://boards.fool.com/Message.asp?mid=13053556

Rat made another of his hated and yet weirdly accurate technical calls and his prediction came exactly true on Friday. nicecallrat.
http://boards.fool.com/Message.asp?mid=13054570

Flash forward 90 days. Another great quarter. There is great joy in Mudville. But the stock tanks again. Again a very positive conference call. Again Cynthia Merrell says something at the conference call that is misinterpreted or exaggerated. This time though it's gross margins. Hey listen... I'm with you guys that CNBC should check things out a little more! But it is info-tainmant after all. I still love Joe Kernen's Get Smart jokes. But as far as the CREE story goes he "missed it by that much".
Anyway all I can say is I feel really bad for Cynthia. I'll bet she's taking some heat for this. Almost all great companies do issue conservative guidance and that's all she is doing. Both statements she made were not negative. So I'm really defending what she said in this post. But at the same time I'm making an observation. I think if I were Cynthia I would just take the night off during the next conference call. Sometimes you just can't win for losing. Go out for a nice walk or something. And Cynthia... if you happen to read this... don't worry about it. In the long run it will all be about how CREE actually performs. This will pass. So keep your chin up and keep doing a good job. Don't worry about what the press has to say.
still long
Glenn
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