Cree Story

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CREE -- USA Stock  

USD 105.21  13.05  11.04%

It looks like FormFactor will continue to recover faster as its price went down 4.47% today to Cree's 4.06%. As many rational traders are trying to avoid technology space, it makes sense to digest Cree Inc a little further and understand how it stands against FormFactor and other similar entities. We are going to discuss some of the competitive aspects of both Cree and FormFactor.
Published over three weeks ago
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FormFactor vs Cree Inc
By analyzing existing basic indicators between Cree and FormFactor, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in FormFactor with a short position in Cree. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cree has an asset utilization ratio of 174.08 percent. This indicates that the company is making $1.74 for each dollar of assets. An increasing asset utilization means that Cree Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Cree or Diodes is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Cree's Liquidity

Cree financial leverage refers to using borrowed capital as a funding source to finance Cree Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cree financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cree's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Cree, but it might be worth checking our own buy vs. sell analysis

Correlation Between Cree and Diodes Inc

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Cree together with similar or unrelated positions with a negative correlation. For example, you can also add Diodes to your portfolio. If Diodes is not perfectly correlated to Cree it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Cree for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between CREE and DIOD for more information.

Breaking down Cree Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Cree revenue. Based on the latest financial disclosure, Cree Inc reported 877.7 M of revenue. This is 78.46% lower than that of the Technology sector and 83.98% lower than that of the Semiconductors industry. The revenue for all United States stocks is 90.7% higher than that of Cree Inc. As for FormFactor we see revenue of 675.2 M, which is 87.68% lower than that of the Semiconductors

Cree877.7 Million
Sector4.08 Billion
FormFactor675.2 Million
877.7 M
4.1 B

Will Cree shareholders go ballistic after another dip?

Expected Short fall just dropped to -3.05, may indicate upcoming price decrease. Cree Inc currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.77. However, we do advice investors to further question Cree Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

Although some other entities within the semiconductors industry are still a little expensive, even after the recent corrections, Cree may offer a potential longer-term growth to shareholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Cree at this time. The Cree Inc risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Cree.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Cree Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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