Wow Mark...what a bloodbath in tech land (not just CREE), huh ??
Man, Greenberg & the shorts just won't let up on CREE....he's pounding it again today...what do you make of all the "related-party" deals he has questioned over the last 6 months or so ?? Any real concerns management is less than forthright?....Profit margins seem to be under some major pressure, but CREE is definitely starting to get interesting here......then again I thought CSCO was a great buy at $30 !!!!!
Jimbo
Spectrian Finds Out What It's Like to Get Cree'd
By Herb Greenberg
Senior Columnist
3/9/01 9:59 AM ET
Very Briefly:
Cree-d off!: What must they be thinking at
Spectrian (SPCT:Nasdaq - news - boards) now
that Cree (CREE:Nasdaq - news - boards) is
warning that its business is soft? A few months
ago, when Cree was trading at $35, Spectrian
sold its UltraRF semiconductor division to Cree in return for Cree stock. As part
of the deal, Spectrian agreed to buy $58 million worth of UltraRF chips from
Cree -- no matter what! Spectrian even warns in its 10-Q that it is "obligated to
purchase excess inventory that it may never utilize ... which could have a material
adverse effect on the Company's business, financial conditions and cash flows."
So, here's Spectrian, fresh from its deal with Cree, and not only has Cree's biz
slowed -- with its stock now trading at $17.50 -- but so has biz for Spectrian's
largest customer, Nortel (NT:NYSE - news - boards)! Talk about getting caught
between a rock and a hard place! Maybe Spectrian should've paid closer
attention to a similar deal Cree had managed to strike with Charles & Colvard
(CTHR:Nasdaq - news - boards), the fake diamond company that got stuffed
with four years' worth of inventory. Spectrian officials couldn't be reached. |
