High output power (above 3 mW/facet) AlGaAs/GaAs Transverse-Junction Stripe light emitting diodes have been grown on Semi-Insulating (100) GaAs substrates by Liquid Phase Epitaxy. These light emitting diodes utilize a "Direct-connecting" transverse-junction stripe structure, which can confine the transverse-current and reduce the series resistance. By thinning the thickness of the "effective active-layer'' of this structure, a room-temperature pulsed lasing operation is also achieved with a threshold current as low as 35 mA and a peak wavelength around 904 nm. This "Direct-connecting" transverse-junction stripe structure may be a pathway to monolithically integrate a Transverse-Junction Stripe light emitting device with a Metal-Semiconductor Field Effect Transistor on an electrical isolated semi-insulating substrate in the future.