Cree Inc. (NASDAQ:CREE) — This semiconductor maker focuses most of its expertise on LED products, but competition in that arena is fierce and CREE has not lived up to its potential.
After the close yesterday, CREE forecast Q2 profits of 25 cents to 28 cents a share when analysts were expecting 34 cents. Cree has been in a bear market since early last year when it topped at over $80.
This stock is showing no improvement in either its fundamental or technical situation. The strong channel downtrend has support at about $20, and so that is the target for a short sale.
Please check with your broker for the ability to borrow shares and place a protective stop-loss order at $32.