Investing the Recovery Act - LED Manufacture Cree Inc

The Recovery Act not only boost the economy it is also a good source of investment.  In this article lets look at project 9 on the Recover Act Report - LED Manufacture.  


In this project Cree Inc. (CREE), the leading manufacturer of solid state lighting based in North Carolina, received $39 million Advanced Energy Manufacturing Tax Credit to purchase new equipment to add capacity and capability to lower production costs of LED(light emitting diode) chips and fixtures. The project helped Cree Inc to add 375 jobs since 2009 and stay competitive with rivals in Korea, China and Japan.  


The LED industry is one of the hottest industries in today's energy saving aware world as LED lighting is more energy efficient than traditional lighting.  In addition it has broad applications even in traffic signals.  As Unite States is pushing into a more energy efficient economy, we should see continuous growth in this industry and especially Cree Inc.  


Looking at the stock CREE is currently trading near this year's low at $55.02 per share.  The technical chart shows CREE is on a rebound as it is now above 20 day moving average with KD line rising rapidly. Cree Inc's financial is very strong so buying the stock is not only safe but also has great growth potential.