"Yesterday we met with Cree. Our general impression is that the lull in various LED end markets will last into early C1Q11 but that the elements of a very strong 2011 are falling into place. Chinese street lighting quotations have resumed and point to renewed order momentum in 2011; design activity for next-generation LED luminaires is accelerating; and LED-LCD panel builds should pick up after the Chinese New Year. To be sure, there's a measure of uncertainty about exactly when China and LCD kick back in, but uncertainty is the building block of excess return. It's what allows you to buy a company likely facing exponential market growth opportunities for a 14x P/E (excl. cash). We'd buy it."
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