Once the exit from chapter 11 is cleared, we can expect a slight climb towards $5 🧐
An Analysis by TigerAI reveals a bullish future for $WOLF:
Scenario 1 — Best case (30% probability)
Summary: Emerges from Chapter 11 cleanly, Mohawk Valley ramps smoothly, margins improve, revenues grow rapidly with SiC demand.
Timeline: Exit Chapter 11 (Q4 2025), full Mohawk ramp and improved yields by mid-2026 → 200mm fab approaching targeted utilization by end-2026.
Scenario 2 — Base case (45% probability)
Summary: Wolfspeed exits bankruptcy, achieves steady but slow improvement in operations and margins as 200mm capacity ramps—recovery is real but slower than hoped.
Timeline: Exit Chapter 11 Q4 2025 → gradual fab yield improvement through 2026–2027; selective customer wins.
Scenario 3 — Worst case (25% probability)
Summary: Post-reorg execution fails — Mohawk ramp problems, weak demand or aggressive competition drive prolonged losses. Company struggles to achieve sustainable margins despite lighter debt.
Timeline: Exits Chapter 11 but faces continued cash drain through 2026–2027; further asset rationalization or dilutive financing may be required.
#NotFinancialAdvice #PureSpeculation #DueDiligence #DoYourOwnResearch
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- JackQuant·09-17Wow, your diluted cost is so low.1Report
- blimpy·09-17Interesting analysis1Report