A more positive way to describe a repo is that the leadership has more faith in the company's earning potential than the market does. So much so that it would violate the leadership's fiduciary duty to act in the best interests of shareholders by leaving capital reserves in low-earning deposits. Repos don't necessarily raise share price, but they do offset the downward trajectory. More importantly, when the company performs to the level (which the leadership has faith it will, and the market doesn't) the repo rewards shareholders who were faithful because their share value will rebound more strongly as the market float (available shares to be purchased) is smaller. It also positions the company to raise more capital when it sells stock from its treasury.
Hope that's not off-topic. I haven't followed Cree. They may be performing poorly as you suggest. All I wanted to say is that sometimes performance and stock price are unrelated. Investors could have had higher expectations than they should have, there could have been a missed deliverable at some point. For whatever reason, the market doesn't value Cree very highly. But, the fact that the leadership is transferring capital indicates they have a substantially different view. Instead of spending money on engineers and equipment to perform better, they expect they'll perform well enough that their cash reserves are better invested by returning capital to investors.
Seems like a strong reason to believe Cree has something going for itself, not "sux." But, like I said, I haven't followed it.
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