Core Viewpoint - Wolf Speed has experienced significant stock price volatility, with a reported increase of 1,700% in one day, primarily due to a mechanical effect following its exit from Chapter 11 bankruptcy [1][5]. Company Overview - Wolf Speed is a silicon carbide materials company that has faced high capital expenditures and ongoing losses, leading to substantial debt accumulation [2][3]. - The company generated approximately $757 million in sales last year, a decline from over $800 million the previous year, while incurring losses of about $1.6 billion [3]. Financial Restructuring - The company's debt reached around $6.8 billion, nearly equal to its total assets, indicating a state of insolvency [4]. - Following Chapter 11 bankruptcy, the company underwent a restructuring process, resulting in a significant conversion of old shares to new shares at a rate of 120 to 1 [5][6]. Stock Price Dynamics - The stock opened at around $22 after the conversion, but the effective price for previous shareholders was equivalent to about $145, reflecting an 85% loss for those who held shares from Friday to Monday [7][8]. - The apparent stock price increase was misleading, as it did not reflect an actual improvement in business fundamentals [8][10]. Market Reaction - Shareholders who purchased shares at the lower price range of $6 to $8 after the bankruptcy restructuring saw substantial gains, contrasting with the losses experienced by those who held shares prior to the conversion [10].