Cree, Inc. (CREE): Will this Company Burn Bright?

Bulb competition

Cree is in competition with a heavy hitter in American industry that has been in existence for almost as long as the light bulb. The industrial giant General Electric Company (NYSE:GE). is also a fixture in bulbs. In addition to several types of incandescents which it has been selling for many decades, it has a line-up of LED bulbs, which also can be found at Home Depot and other stores.

However, I’m sure that General Electric Company (NYSE:GE) is concerned about other things besides light bulbs.

The company wants to downsize its finance division, which acted as a drag during the 2008 – 2009 financial crisis. General Electric Company (NYSE:GE) Capital is selling off $800 million worth of its U.S. real estate portfolio and the Canadian car leasing business it owns.

The company is also expanding its stake in the energy industry by developing a drilling services business. The goal there is to take advantage of the ongoing boom in shale gas and tight oil production.

Conclusion

So Cree, Inc. (NASDAQ:CREE) is poised to grow because of an innovative product it has developed if things go well and it can penetrate further into a century-old market. Expect greater sales of LED bulbs and a higher stock price down the road.

GE may be too busy fixing other parts of its business, which may allow Cree, Inc. (NASDAQ:CREE) to burn brighter in the future.

The article Will this Company Burn Bright? originally appeared on Fool.com and is written by Mark Morelli.

Mark Morelli has no position in any stocks mentioned. The Motley Fool recommends Home Depot. The Motley Fool owns shares of General Electric Company. Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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