Cree Inc. (CREE)

Caller shorted the stock at $40 and just covered now. Was he too soon? Looking at the chart, he sees no reason to have covered as it is still in a downward trend. Semiconductors and chip stocks had a lot of deterioration in the last 2 months but the space is a great one to be in.

Sales have been extremely strong. Selling 80% of its semi-conductors into Asia. Biggest risk is price competition.

Makes money. Expensive. Generates free cash flow. A leader.