Why Shares of Himax Technologies Tumbled Today

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What happened

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Shares of semiconductor company Himax Technologies (NASDAQ: HIMX) 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.

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.

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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.

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Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.