This post was just published on ZYX Buy Change Alert.
CREE is a maker of LEDs. It also has significant intellectual property in this promising field. This is a long-term position.
Back in 2010 the stock traded over $83 and over $75 in 2013. This morning the stock is falling on awful earnings and has traded at $33.25 in the premarket.
The pattern of this type of stock under similar circumstances is to experience further tax loss selling between now and mid November; then typically a significant bounce occurs between mid November and mid March.
This is a very volatile stock and trades over a wide range. For this reason, investors may consider accumulating in small tranches up to 60% of the full core position size in the zone of $26.32 to $34.52. As usual most of the accumulation should take place in the lower half of the buy zone. No stops for the time being. Target zone is $65 to $75.
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