The LED outdoor lighting replacement trend is growing with over 600 cities in the U.S. already planning to switch old streetlights to LEDs, according to Commercial Times. New York plans to switch roughly 25,000 streetlights to LEDs by 2017, making it the largest undertaking in the North American market. Europe, China, and Japan are also initiating replacement projects. LEDinside estimates that compound annual growth rate will surpass 20 percent in 2014-2017, which will encourage lowered stock prices.
Last Friday, high priced LED stocks including Everlight and Epistar delivered average performance. However, low priced stocks including Unity Opto, Lextar, Harvatek, and Edison Opto were up. Harvatek for example saw loss turn into profit during 3Q13 and for the entire 2013 fiscal year and tried to balance out losses. This year the company will have a bigger chance to restore profits and see a turnaround. Stock prices are straddling the flat line and have reached a new high of NT $18.8. Recently, Everlight high stock prices have entered an adjustment period due to the company undergoing patent litigations. However, low priced stocks will see a turnaround. Lower prices will make it easier for low priced stocks to catch up with high priced ones.