Is Wolfspeed Stock More Like a Trap Than an Investment?
(NYSE: WOLF) stock has taken investors on a wild ride over the last year. Last June, the company announced that it was receiving Chapter 11 bankruptcy protections as it moved forward with a corporate restructuring.
The bankruptcy news actually rekindled some of the meme stock energy that had previously driven gains for the company's share price, but the terms of the company's financial restructuring meant that many shareholders who bought into the company wound up with their investment positions deeply in the red.
Wolfspeed's restructuring is now squarely in the rearview mirror, and the company has managed to wipe much of the debt previously on the books by transferring the ownership of assets to major creditors and transferring equity through a reshaped share structure. The silicon carbide (SiC) and gallium nitride (GaN) chip specialist is moving forward with a greater degree of financial flexibility, but is the stock still more like a trap than an investment?
Source Fool.com
