Wolfspeed has no sign of imminent recovery; only a very low valuation (below 2x annualized sales) would tempt a speculative buy.

Silicon carbide Wolfspeed? Because I have Wolfspeed listed here under silicon carbide wafers, specifically raw silicon carbide wafers, but they also do epitaxial wafers. They also do the epi step using CVD, chemical vapor deposition.

They also make devices. They're here in the middle in the silicon carbide devices with the IDMs.

But what about Wolfspeed's recovery? I just clicked on the financials for Wolfspeed. It pops up here on this little panel on the right. This is the last 12 months.

You can also just click on Wolfspeed and go to the financials page directly from the supply chain. Revenue has continued to decline. They guided for sequentially flat revenue for the next quarter, that ends in Q3 of the calendar year, end of September.

But look at these margins. This is just terrible. You're bleeding cash. They reworked the balance sheet. They were able to settle with creditors, with Apollo and Renesas and others.

But, priority number one, if all this other stuff is going to get fixed for Wolfspeed, they need to return to revenue growth first and foremost, especially when you have some of the other integrated IDMs like STMicro, Onsemi, Infineon are vertically integrated as well.

Personally for us, unless Wolfspeed got really, really cheap, which it appears it is. Where are we at today? Let me click on Wolfspeed. Market cap of 1.4 billion. Wow, it's up a lot today, 8%, quite the rebound.

At any rate, that's where Wolfspeed's at. Unless Wolfspeed gets really, really cheap, starts trading for less than two times annualized sales, at which point, okay, maybe we take a starter position or a speculative position, maybe even buy a long-dated out-of-the-money call option, something like that that doesn't eat up very much of the portfolio at all, but could capture some upside if things suddenly turned around.

And a more speculative bet like Wolfspeed, if it got cheap enough, that would tempt us back in. But there's no sign of imminent recovery yet.