Wolfspeed Is Plummeting Today -- Is the Highly Volatile Stock a Buy Right Now?

Wolfspeed has seen incredible volatility this week

The stock kicked off the stretch with massive gains after the company announced on Monday that it had selected Gregor van Issum as its next chief financial officer

The news spurred an incredible surge for the stock, and the rally continued through Tuesday's trading -- but s have subsequently seen some big pullbacks

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Today's sell-offs aren't connected to any new developments for the company and instead appear to be a continued fit-taking reaction to the huge gains recorded across Monday's and Tuesday's sessions

Even with some big pullbacks, the stock has still more than doubled over the last week

Should investors pounce on Wolfspeed stock

The massive rally for Wolfspeed stock early this week appears to have been largely disconnected from the practical implications of what the company naming its next CFO means for current holders of its common stock

The silicon-carbide specialist filed for preliminary Chapter 11 bankruptcy tections at the end of June, and the company is moving forward with a restructuring that will see its assets transferred to creditors in order to offset debt

The restructuring will also see a new corporate entity created and grant holders of Wolfspeed stock only a small valuation slice of the new company

This vision suggests that there is vey little chance for current holders to receive value above Wolfspeed's current price after the restructuring is

While it's within the realm of possibility that the stock could see a short-term surge above its current pricing level, there's also a big risk that the stock will quickly plummet when s are de-listed form the New York Stock Exchange (NYSE) due to the company's bankruptcy ceedings

Keith Noonan has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Wolfspeed

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