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Technology Stocks : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (4463)	12/5/2000 4:02:44 PM
From: 993racer	Read Replies (2) \| Respond to of 10713

Slacker, Im glad you brought this up, I was jut gonna post something in advance of tonite's Rocker Partners radio show-I've also had some discussion with HG about this via email. Even though C3 is no longer counted on for revs at Cree-HG (by way of Rocker) is stressing this C3 thing with Hunter's bro as the pres. Quite understandable. Well lets put this into perspective. C3 is the exclusive customer of Moissanite. Cree has developed a process and commited part of their valuable production capacity (which is otherwise in backlog) to Moissanite production. Therefore it is expected that C3 must by ALL gems that are produced. Initially, this was fine as supply was not keeping up. Then, as Cree's history (and hopefully future) have shown, they get better at producing the stuff and are able to "ramp" production...except C3 cant sell it that fast...C3 was doing the selling themselves (this is C3's flawed business model, they did not take on outside distribution). Cree is still producting the Gems, and C3 MUST take them... Inventory builds and we are where we are today. IF C3 was not Cree's only gem customer, and C3 was stuffed with inventory..I would be very nervous..but C3 is the ONLY customer for gems so they HAD to buy it to keep "exclusivity" In the meantime, Cree has worked with C3...buying back the equipment and converting production capability to other uses such as led, rf etc... I hope this helps you understand this now.. good luck, racer