Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: 993racer who wrote (4464)	12/5/2000 6:40:33 PM
From: unclewest	Read Replies (2) \| Respond to of 10713

a coupla more points. hunter's brother is no longer with cthr. approx 18 months ago cthr accounted for a full 20% of cree's revenues...that has diminished to almost nothing and cree's forward guidance is for zero sales to cthr. seems pretty awesome to me that cree could lose a 20% customer and never skip a beat on growth progress. btw herb used the exact same arguments a year ago. following that, cree rose to 200 on the back of his short position. i knew he had it wrong then...i am convinced he has it wrong again. in this rapidly declining market herb could have thrown a dart and been right...i would not be too quick in allowing him an ounce of credit for a good call. LOL

To: 993racer who wrote (4464)	12/6/2000 12:33:32 AM
From: slacker711	Read Replies (2) \| Respond to of 10713

Cree has developed a process and commited part of their valuable production capacity (which is otherwise in backlog) to Moissanite production. I think if I look at it the other way it does provide some more insight into the agreement. If moissanite sales had absolutely skyrocketed, C3 would have had a secure pipeline for their supply. This would have slowed down the production of SiC devices by at least 3-6 months (the time it would have taken for Cree to build more crystal growth machines). OTOH....since moissanite sales didnt live up to expectations, this gave Cree the perfect situation. Cree is able to devote as many resources as they need to their SiC production. If crystal growth is NOT the choke point (isnt it epitaxy?) then they are able to devote any excess crystal capacity to CTHR which had to accept the product. Hmmm....still thinking this through. One thing I havent been able to come up with is a rationale for CTHR selling the crystal growth machines for $5m in moissanite. They already had nearly 3 years worth of inventory....and they desparately needed cash. Moissanite wont pay for advertising....or for salaries. Slacker