Cree, Inc. (NASDAQ:CREE)’s innovation isn’t just limited to domestic lighting since commercial forms an important part of its portfolio. The company is constantly engaged in lowering costs and delivering more lumens per dollar in commercial, and the fact that its latest LEDway series upgrade is expected to cost 20% lower while being 15% more powerful is indicative of its efforts.
In addition, Cree, Inc. (NASDAQ:CREE) has a huge playing field in China as well while expansion in North America and Europe should aid its growth further. Thus, with a huge addressable market in front of it, investors shouldn’t be unnerved by Cree’s expensive trailing P/E of almost 117 as its prospects are very strong.
Growing into a Giant
Online gaming in China is really popular and this is why I had recommended Giant Interactive Group Inc (ADR) (NYSE:GA) as one of my top stocks for 2013. The company was pretty cheap then, and still is (with a trailing P/E of just 11), and pays a juicy annual dividend depending on its earnings for the year. In an impressive move, Giant Interactive Group Inc (ADR) (NYSE:GA) has decided to pay a semi-annual dividend from the current fiscal year.
The company’s solid strategy of keeping its games fresh through expansion packs, diversification into multiple platforms such as web games, micro-client games and mobile, and the fact that its games are addictive are some more reasons why I’m optimistic about the company’s prospects.
Giant Interactive Group Inc (ADR) (NYSE:GA)’s ZT Online franchise has been a major hit and has helped drive its revenue, and the company has benefited from its popularity by including content from it on other platforms. Also, Giant is working on World of Xianxia, which it expects to be its next blockbuster, and the company is looking to capitalize on the positive feedback it has received for the game while testing it by introducing a micro-client version as well in the future.
Giant Interactive Group Inc (ADR) (NYSE:GA) has also chosen the right partner in the form of Qihoo 360 to operate its games and Qihoo’s huge user base of 457 million should help Giant get more people to play its games. Giant is expected to release its next quarterly results early next month and I expect it to continue its impressive streak.
The bottom line
These stocks did really well in the first six months of the year and a look at their business tells me that more upside is on the way. Micron Technology, Inc. (NASDAQ:MU) would benefit from improving industry fundamentals; Cree, Inc. (NASDAQ:CREE) has a big, big market of traditional light bulbs and commercial lighting to attack and has the right products; while Giant Interactive Group Inc (ADR) (NYSE:GA) is going about its business in a methodical manner and this has, and should continue to, yield results.
So, if you are long these stocks, there’s absolutely no reason why you should hit the eject button.
The article These Winners Should Continue Winning This Year originally appeared on Fool.com and is written by Harsh Chauhan.
Harsh Chauhan has no position in any stocks mentioned. The Motley Fool recommends Giant Interactive Group. Harsh 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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