More Caution Remains in LED Sector (AIXG, VECO, RBCN, CREE)

In the LED sector piece we also see a warning that Rubicon Technology, Inc. (NASDAQ: RBCN) is likely to miss earnings expectations: “Despite stabilizing sapphire pricing, we expect RBCN to miss Q1 expectations, as the company just began selling 2” and 4” cores late in Q1. Given the lack of 6” volume, we see risk to near-term results.”

Cree, Inc. (NASDAQ: CREE) was the one that was maintained with a BUY rating, but Canaccord does not see a meaningful recovery until the second half of 2012.

As more caution is present, the firm noted, “We have no updates on the Chinese 5YP at a national level, but it sounds like some local governments are still working on their own subsidies for street lighting, outdoor lighting, etc.”

JON C. OGG