Shares in Cree plummeted 19 percent, or more than $3 a share, on Wednesday even though the company announced record profits for the year and a strong quarter.
Adams Harkness downgraded the stock to “market perform” from “buy”.
The company said in a conference call that legal costs from the law suits filed by former CEO Eric Hunter and his wife plus increased competition would lower profits in future quarters.
As a result, Cree stock dropped to a nine-month low of $13.43. The stock has dropped by nearly half since the Hunters announced their suit. A number of class action suits also have been filed.
To see earlier story: www.localtechwire.com/article.cfm?u=4906
