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To: unclewest who wrote (4439)	12/2/2000 11:47:47 PM
From: Jack Hartmann	Respond to of 10712

The NC Observer view of the decline Cree stock reels on criticism, a bad week The semiconductor company's volatile shares continue their recent slide. By DAVID RANII, Staff Writer DURHAM -- Cree had to contend with bad press on top of a lousy market this week. Cree shares had been falling sharply along with other technology stocks even before Wednesday, when the Durham semiconductor company took a hit in a negative article published by TheStreet.com. Analysts and company executives alike were as critical of TheStreet.com columnist Herb Greenberg as Greenberg was of Cree, but the two groups disagreed on the story's impact. Cree executives saw little effect, but some analysts said that the beating Cree stock took during the past two days may have been exacerbated by the article. Thursday, Cree's shares dropped $13.13, or 19 percent, to close at $56.13. That marked a 45 percent drop in the past two weeks, and was a far cry from Cree's 12-month high of $198.19. "The biggest issue they are confronting is the market," said Dale Pfau, an analyst with CIBC World Markets. He pointed out that semiconductor stocks as a group have fallen 50 percent in recent months. Still, the article in TheStreet.com could do nothing but add to the decline in Cree's stock. "TheStreet.com has a following," said one analyst. "It can [hurt] a stock." In his commentary, columnist Greenberg lambasted Cree's "web of related-party and not-quite-arm's length-transactions" with Charles & Colvard in Morrisville -- which until May was headed by Jeff Hunter, the brother of Cree CEO Neal Hunter -- as well as with businesses that Cree has invested in and which in turn have agreed to fund research at Cree. "I feel very comfortable that all of it has been disclosed," said Chuck Swoboda, president and chief operating officer. "I feel very comfortable that everything we do is above-board and it is there for people to read in our disclosures." At the end of the day Thursday, Cree's closing price of $56.13 was remarkably similar to exactly a year ago, when the stock traded at $57.13. Neal Hunter pointed out that although Cree's stock has come full circle in 12 months, the stock has managed to outpace the market. Thursday the Nasdaq closed at 2,597.93, vs. 3,336.16 12 months ago. Staff writer David Ranii can be reached at 829-4877 or dranii@nando.com newsobserver.com Jack

To: unclewest who wrote (4439)	12/3/2000 8:00:00 AM
From: cooksbay95	Read Replies (1) \| Respond to of 10712

UW, FWIW (maybe not much) here are some comments I sent to Pat Mudge a couple of weeks ago re-Herb. I'm certainly not saying that Herb is right here ... but from the past record he is right sometimes (most recently w/LHSP)... I'd say it's worth making sure your backside is covered on CREE because Herb is nothing if not persistent. Cooks To: pat mudge who wrote (14279) From: cooksbay95 Saturday, Nov 18, 2000 4:05 PM ET Reply # of 14567 Pat, re- <<Incidentally, Herb Greenberg has about as much credibility as Bob Posani when it comes to investigative reporting>> ... I don't like Herb either ... but I have to say that over the years I have reluctantly and grudgingly come to recognise that when he is bad-mouthing one of my stocks I should at minimum listen. He has been "right" (from a bottom-line standpoint) about 3 of my stocks. First, back in the days when you were an MFer and we were both thinking that Amati would make our fortunes I hated Herb, I thought he badly misled people and distorted the truth ... I still don't believe he acted appropriately BUT if I hadn't been quite so emotionally opposed to him I would have made out better. I was lucky and made a lot of $ w/IOM but still only 25% of my peak gains ... mainly because I was too much in love with the stock. The second was more recent ... Lucent ... this time I was more objective and managed to keep most of my profits. Last but not least he was dead-on with LHSP ... and frankly he saved me a bundle ... I read his stuff again and again and decided he was onto something (despite still not liking how he represented his info )and got out before most of this falling knife decline. I still don't like his manner, I don't trust him ... but I do think that he has some sources who are pretty damn smart ... so I now read Herb (with some distaste) just in case he's dumping on one of my stocks ... and I think I'm more objective because of it. Well, just some thoughts for consideration ... meanwhile THANKS AGAIN for your TERRIFIC contributions to this and other boards. Cooks