Buy Alert: November 26, 2013

| November 26, 2013

Buy Alert:  November 26, 2013

 

Trade Details

Buy Cree (CREE) January 2014 $60 Calls for $1.65 or better

 

Why?

Cree, one of the leading LED products producers, sold off sharply in late October on lower than expected Q4 guidance.  However, the stock is ready to bounce back.

Technically speaking, the share price is below all three major moving average (200 -, 50-, and 20-day) and appears to have bottomed out.  I believe the stock has very little downside at this level.

Moreover, CREE is still growing rapidly.  The LED lighting market is taking off, and CREE is in excellent position to profit from the explosive industry potential.  Not to mention, the company is sitting on over a billion in cash, giving management plenty of options on how to proceed.

Let’s grab January CREE calls here.

 

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Category: OTW Buy Alerts