What happened
Shares of semiconductor company Himax Technologies (HIMX 0.91%) slumped on Wednesday following a tweet from Citron Research. The stock was down about 10% at market close.
So what
On Wednesday morning, Citron posted a negative tweet about Himax. Citron accused management of a history of fraud, saying that the market is starting to realize that the story behind the company is a sham.
Image source: Getty Images.
Citron is known for publishing critical reports on companies it believes are frauds or dramatically overvalued. Himax has not responded to the accusations.
Shares of Himax are up almost 100% year to date, even after Wednesday's slump. The company last reported earnings in November, beating analyst estimates across the board, but suffering a third consecutive quarter of slumping revenue.
Now what
Citron's tweet came with no evidence or details, so investors should take it with a grain of salt. With shares of Himax up so much this year, a pullback could simply be the result of expectations getting ahead of fundamentals. In any case, investors should do their own research and come to their own conclusions.
