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Investors pulled the plug Wednesday on shares of Monolithic Power (MPWR) - Get Monolithic Power Systems, Inc. Report after an attack by a noted short-seller raised questions about the semiconductor company's business practices.

Monolithic's stock price declined 5.01% to $134.70 a share after Spruce Point Capital released a report arguing the company faces downside risk of $21 to $35 a share.

Spruce Point contends that Monolithic is effectively a "foreign company" despite being headquartered in Kirkland, Wash., with "90% of its production and 58% of its sales reported in China."

The report also alleged potential problems with Monolithic's accounting practices, including "irreconcilable differences between MPWR's consolidated filings and its Chinese tax documents."

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Monolithic, which produces power circuits for a range of applications from cloud computing to automatic and industrial systems, couldn't be reached immediately for comment.