Paragon Financial Examines LED Makers Struggle
Sep 23, 2011 The Paragon report examined investing opportunities in the LED Sector and provided equity research on Cree, Inc.and Veeco Instruments, Inc. It notes that the struggle of the LED makers is mainly due to the downturn of the demand from emerging markets as well as sharp significant decrease of prices for LED-based products.
Marketwatch reports that Cree CEO Chuck Swoboda believes the huge increase in chip production to service LED backlighting applications in recent years has put pressure on the rest of the market.
According to IMS' research, backlighting, which ranges across consumer electronics such as flat panel TVs and cell phones, is expected to grow at a mere 2 percent this year, while the general lighting market for LEDs will be the fastest-growing market, up 29 percent. IMS Research's latest "LED Supply and Demand Report" expects longer-term strength in the LED market. The firm estimates 36 percent revenue compound annual growth rate from 2010 to 2015 for packaged LEDs to $6.3B, up from $1.75B in 2011.
The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the LED industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.
In China, LED demand is on the upswing. However, a sudden surge in government-backed Chinese LED makers has eaten into the market shares held by the likes of Veeco. Last week shares of Veeco fell significantly after another LED equipment maker, Germany's Aixtron SE, spooked investors by slashing its revenue forecast for the second half of the year by nearly 50 percent, on worries about weaker demand from China, a key market.
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Author: Alice Jones
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