After Its Recent Rally, Should Investors Sell Wolfspeed Stock?

Silicon carbide technologies specialist Wolfspeed's (NYSE: WOLF) stock has staged a huge rally, soaring from $0.40 per share at the end of June to over $3 at one point in just a few trading sessions. That kind of move can make you stop and ask, "What am I missing?"The answer is nothing and investors should not only proceed with caution on Wolfspeed, they need to stay away from this stock. Wolfspeed is in the middle of a prepackaged bankruptcy process that will leave existing shareholders with very little when all is said and done.So, what's behind the rally? More likely than not, Wolfspeed shares have rallied due to a short squeeze currently underway. The stock has a high short interest, and with the company not being liquidated and borrowing costs to short the stock high, this is likely leading to short sellers covering their positions, which means they must buy the stock.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool