Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

Another sign of ASP Pressure- Neg. CREE, ZRAN, ESST, MRVL

Schwab Soundivew cites concerns over Cree; reiterates Underperform 23.56: Schwab Soundview notes industry trends for Cree are unfavorable and reiterates its underperform rating. The firm highlights concerns it received on its Taiwan trip regarding Nichia's unexpected price reduction of white LEDs for wireless applications by ~40%. Firm believes Cree's customers will need to meet Nichia's price move regardless of that co.'s motivation. Massive Taiwanese blue LED chip supply & licensing dynamic make the ASP environment hostile in 2004 as blue/white LED average selling prices could erode another 50% over the next 12 mos