Morgan Joseph has initiated coverage on Cree Inc (CREE) this morning with Hold saying the stock is fairly valued at current levels.  The firm believes Cree is the best play on LED’s and is gaining market share of 1-2% per year while its largest competitor, Nichia, continues to lose share.  They don’t believe LED’s are a fad, but rather a long term growth story.  The other publicly traded LED play to keep an eye on is Rubicon (RBCN) which manufacturers the crystalline used in LED’s.

Cree is trading down about 2% today and remains technically weak.

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