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No. of Recommendations: 7

Again the stock drops on good news on a day that the Nasdaq is a little higher. I will not buy another single share of CREE until I understand why this is happening. If this is some sort of manipulation(standard answer from the perma-bulls)it is having the intended effect on me. I am not a buyer...and so far not a seller. I hope I am not making a big mistake in holding.

My guess (likely wrong, but whatever) is that a mutual fund is unloading their shares.
The recent behavior of the share price is like the reverse of when Fidelity was buying
in, about a year ago I think. At that time, I think I remember that the share
price would outperform the averages by one or two percent every day.
Later it became public that Fidelity had bought up over 5 percent of the company.
They must have been buying a couple hundred thousand shares every day. Maybe
they are now unloading a couple hundred thousand shares every day. Never enough
to cause a big spike down in the price, but a constant drag.

Either that, or I suppose there could be some really bad news that is slowly
leaking out.

Cheers, and back to longtime lurk mode.

- StoppedClock
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