Here’s Why LED Stocks are Tanking Now

October Sales figures for 6 Taiwanese LED firms reveal that five posted declines in sales year-over-year, and three had declines exceeding 25%. No wonder Cree (NASDAQ:CREE) was downgraded in September by Wunderlich’s Theodore O’Neill citing a weakness in worldwide semiconductor bookings.

This data also comes on the heels of the weak results posted by Taiwanese LED chip maker SemiLeds for its fourth quarter. Revenue was $5.3 million and loss 49 cents a share.

“As expected, the market remained challenging in Asia for LED chips and components,” CEO Trung Doan said in a statement. “The China market is not improving due to inflationary and monetary issues together with depressed economic conditions around the world. We continue to see pricing pressure due to the weak demand in the China outdoor street lighting market, together with the overcapacity of backlight that has spilled over to the general lighting market. The ASP erosion is not as extreme as in prior quarters and prices have stabilized somewhat. With so much uncertainty, we remain cautious in our near term outlook but continue to believe in the industry’s long term market opportunities.”

The news is having a negative impact on these top LED stocks:

  • Cree Inc. (NASDAQ:CREE): The shares recently traded at $29.40, down $1.6, or 5.16%. Its market capitalization is $3.39 billion. They have traded in a 52-week range of $23.03 to $31.34. Volume today was 733,134 shares versus a 3-month average volume of 3,758,420 shares. The company’s trailing P/E is 32.38, while trailing earnings are $0.91 per share. About the company: Cree, Inc. develops and manufactures semiconductor materials and electronic devices made from silicon carbide (SiC). The Company uses proprietary technology to make enabling compound semiconductors such as blue and green light emitting diodes, SiC crystals used in the production of unique gemstones, and SiC wafers that are sold for device production and research. Get the most recent company news and stock data here >>
  • Rubicon Technology, Inc. (NASDAQ:RBCN): The shares recently traded at $10.85, down $1.12, or 9.36%. Its market capitalization is $249.97 million. They have traded in a 52-week range of $9.25 to $29.79. Volume today was 464,904 shares versus a 3-month average volume of 487,850 shares. The company’s trailing P/E is 4.92, while trailing earnings are $2.20 per share. About the company: Rubicon Technology, Inc. develops, manufactures, and sells monocrystalline sapphire and other crystalline products. The Company’s products are used in Light-Emitting Diodes (“LEDs”), radio frequency integrated circuits (“RFICs”), blue laser diodes, and optoelectronics and other optical applications. Get the most recent company news and stock data here >>
  • Veeco Instruments Inc. (NASDAQ:VECO): The shares recently traded at $27.33, down $1.34, or 4.67%. Its market capitalization is $1.07 billion. They have traded in a 52-week range of $23.06 to $57.67. Volume today was 361,742 shares versus a 3-month average volume of 1,789,650 shares. The company’s trailing P/E is 3.79, while trailing earnings are $7.20 per share. About the company: Veeco Instruments Inc. manufactures enabling solutions for customers in the HB-LED, solar, data storage, semiconductor, scientific research and industrial markets. The Company has technology positions in three businesses: LED & Solar Process Equipment, Data Storage Process Equipment, and Metrology Instruments. Get the most recent company news and stock data here >>
  • Aixtron AG (NASDAQ:AIXG): The shares recently traded at $14.82, down $0.91, or 5.79%. Its market capitalization is $1.49 billion. They have traded in a 52-week range of $12.49 to $44.96. Volume today was 93,172 shares versus a 3-month average volume of 464,585 shares. The company’s trailing P/E is 7.22, while trailing earnings are $2.05 per share. The company pays a dividend of $0.60 per share for a dividend yield of 3.70%. About the company: Aixtron AG engineers and manufactures metal organic chemical vapor deposition (MOCVD) equipment for the semiconductor industry. The Company’s customers use its equipment to produce compound semiconductor layer structures for use in LED, laser, solar cell, transistor, telecommunications, and other applications. Aixtron markets its products worldwide. Get the most recent company news and stock data here >>

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