Death of the traditional light bulb

Death of the traditional light bulb Thursday, April 10, 2008

Posted by ei-forum in US Traded Stocks.
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Did you know that the average LED produces three to four times more light that the traditional light bulb? Actually, some of the top-range ones can produce over 60 lumens per watt.

Why are we talking about lumens per watt? Well, congress has passed legislation that says that all light bulbs must produce at least 60 lumens per watt by 2012, moving to 120 by 2020… the current traditional light bulb produces about 13/14! Attention, governments all over the world are moving toward more efficient uses of energy and especially in lighting: Australia is actually considering banning the traditional bulb.

Despite the fact that the short-term winners of this trend will probably be halogen and compact fluorecent lamps, long-term, the market will move to LEDs. Apparently, one study we found states that the industry is supposed to exceed 1 billion dollars by 2011, a 388% spike from 2005 levels.

The GEs and Philips of this world are the biggest players but there are smaller companies like CREE Inc. (CREE) and strong speciality contenders that are worth a look – these companies might actually end up being swallowed by the larger players.

We definitely think that it investors should start looking into this industry sector more closely.