What happened
Shares of semiconductor company Himax Technologies (HIMX +7.72%) 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.
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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.
