Herb on Cree
Oh, such a deal: Spectrian (SPCT:Nasdaq - news - boards), no stranger to my column, waited until after the market closed on Friday to report that its revs will be far short of analyst expectations, and its loss will be much wider. Spectrian, you'll recall, is the company that sold its UltraRF semiconductor division to Cree. As part of the deal, Spectrian is required to buy $58 million worth of UltraRF chips from Cree. Great, a company that says it has "poor" visibility is now on the hook for $58 million in chips from Cree. Such a deal!
As I noted back in March, a few months after the deal was struck, you can only hope Spectrian paid close attention to a similar deal Cree managed to strike with Charles & Colvard (CTHR:Nasdaq - news - boards), the fake-diamond company that got stuffed with four year's worth of Cree inventory.
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Note: Herb has a friend that was heavily short CREE so take it that in consideration.
Jack |
