Philips CEO: LED Sector has More Pain on the Horizon

Philips (NYSE:PHG) Taiwan President Edward Po predicts LED industry leaders like Cree Inc (NASDAQ:CREE), Rubicon Technology, Inc (NASDAQ:RBCN), SemiLEDs Corporation (NASDAQ:LEDS), and Veeco Instruments Inc. (NASDAQ:VECO) are in for more tough times. Although Po expects 30%-40% Y/Y growth in 2011 for the LED lighting market, he foresees that price pressure caused by oversupply will set off a wave of industry consolidation that will start in 2012 and last 3-4 years.

Here’s how LED players are trading on the warning:

Koninklijke Philips Electronics NV (NYSE:PHG): PHG shares recently traded at $19.74, down $0.41, or 2.03%. They have traded in a 52-week range of $16.26 to $34.08. Volume today was 761,862 shares versus a 3-month average volume of 1,894,850 shares. The company’s trailing earnings are $-0.91 per share. Get the most recent company news and stock data here >>

Cree Inc. (NASDAQ:CREE): CREE shares recently traded at $20.53, up $0.04, or 0.2%. They have traded in a 52-week range of $20.31 to $31.34. Volume today was 2,765,630 shares versus a 3-month average volume of 3,414,120 shares. The company’s trailing P/E is 22.61, while trailing earnings are $0.91 per share. Get the most recent company news and stock data here >>

Rubicon Technology, Inc. (NASDAQ:RBCN): RBCN shares recently traded at $9.18, down $0.43, or 4.47%. They have traded in a 52-week range of $8.23 to $29.79. Volume today was 105,821 shares versus a 3-month average volume of 459,736 shares. The company’s trailing P/E is 4.14, while trailing earnings are $2.22 per share. Get the most recent company news and stock data here >>

SemiLEDs Corporation (NASDAQ:LEDS): LEDS shares recently traded at $3.35, up $0.46, or 15.92%. They have traded in a 52-week range of $2.60 to $31.00. Volume today was 395,761 shares versus a 3-month average volume of 84,250 shares. The company’s trailing earnings are $-0.88 per share. Get the most recent company news and stock data here >>

Veeco Instruments Inc. (NASDAQ:VECO): VECO shares recently traded at $20.92, down $1.35, or 6.06%. They have traded in a 52-week range of $29.54 to $53.31. Volume today was 1,090,915 shares versus a 3-month average volume of 1,353,330 shares. The company’s trailing P/E is 2.90, while trailing earnings are $7.20 per share. Get the most recent company news and stock data here >>