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SMCI now down 25% after delaying 10-K - 24 hours after Hindenburg short report
Posted on 8/28/24 at 8:28 am
Posted on 8/28/24 at 8:28 am
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Hindenburg
quote:
Hindenburg said it found evidence of undisclosed related party transactions, and failure to abide by export controls, among other issues, citing an investigation that included interviews with former senior employees and litigation records. “It (Super Micro) benefited as an early mover but still faces significant accounting, governance and compliance issues and offers an inferior product and service now being eroded away by more credible competition,” Hindenburg said in its report.
This post was edited on 8/28/24 at 10:12 am
6
Posted on 8/28/24 at 8:43 am to slackster
Frick them short sellers!!!
SMCI has had some accounting "issues" in the past. The delay of Blackwell from NVDA will impact SMCI, since SMCI is a coattail rider of NVDA. I think the end of 2024 will rebound, they still are in a great position with AI compared to other high end servers manufactures.
I only have 12 share left @ $320, but damn I miss this being over $1000
SMCI has had some accounting "issues" in the past. The delay of Blackwell from NVDA will impact SMCI, since SMCI is a coattail rider of NVDA. I think the end of 2024 will rebound, they still are in a great position with AI compared to other high end servers manufactures.
I only have 12 share left @ $320, but damn I miss this being over $1000
Posted on 8/28/24 at 10:12 am to DarthRebel
Now down 25%. Yikes. Might be worth revisiting tomorrow post Nvidia.
Posted on 8/28/24 at 10:41 am to slackster
Short seller releases negative news, stocks tank and they get 25% return in 1 day
I am not saying SMCI is not guilty, just love how it plays out.
Step 1 - Dive deep into company to find some dirt
Step 2 - Take short position
Step 3 - Release the dirt with theatrics and embellishment
Step 4 - Profit
If NVDA craps itself in earnings, SMCI will get bent over hard. That pending October 10-1 stock split looking interesting now.
I am not saying SMCI is not guilty, just love how it plays out.
Step 1 - Dive deep into company to find some dirt
Step 2 - Take short position
Step 3 - Release the dirt with theatrics and embellishment
Step 4 - Profit
If NVDA craps itself in earnings, SMCI will get bent over hard. That pending October 10-1 stock split looking interesting now.
Posted on 8/28/24 at 10:48 am to DarthRebel
To be fair, the short seller report was yesterday and the stock mostly shrug it off. It was SMCI delaying their filing to review for internal controls that were brought up by the short seller than caused the rout today.
Posted on 8/28/24 at 11:17 am to slackster
Great example of why stops and position sizing are so important in terms of controlling your risk.
You could have read their financials and fallen in love. Triple digit y/y revenue and earnings growth. Sounded great. Turns out they may not be legit.
I don't believe anything I read. Only price pays.
"Love your stops, not your stocks" - Dan Zanger
You could have read their financials and fallen in love. Triple digit y/y revenue and earnings growth. Sounded great. Turns out they may not be legit.
I don't believe anything I read. Only price pays.
"Love your stops, not your stocks" - Dan Zanger
This post was edited on 8/30/24 at 8:23 am
Posted on 8/28/24 at 11:46 am to slackster
I saw this yesterday and should’ve done puts
Ai is fake
Ai is fake
Posted on 8/29/24 at 7:42 am to slackster
Maybe today begins the slow climb back. NVDA while down, posted good stuff for AI future growth. SMCI and NVDA will slowly climb back, although SMCI will be a bit more since it got slaughtered yesterday.
Posted on 8/29/24 at 11:29 am to DarthRebel
I’m an aggressive investor but delayed/ adjusted financials are a big stop sign for me. I wouldn’t put a dollar in a company until there was clarification there.
I worked for a company that went down this path and it was one thing after another. It left the company almost dead by the time it was over.
I worked for a company that went down this path and it was one thing after another. It left the company almost dead by the time it was over.
This post was edited on 8/29/24 at 11:35 am
Posted on 8/29/24 at 4:40 pm to slackster
So is this a buy or naw
Posted on 8/30/24 at 8:10 am to slackster
Bought the dip at 414.00 hoping it was worth the risk.
Posted on 8/30/24 at 8:18 am to LoneStar23
Hindenburg seems to drop a big report each year, and I can’t recall the last one that survived.
Icahn is still reeling from last summer’s report, and it seems like everyone is eagerly waiting for another dividend cut to declare IEP to be all but dead.
Icahn is still reeling from last summer’s report, and it seems like everyone is eagerly waiting for another dividend cut to declare IEP to be all but dead.
Posted on 8/30/24 at 8:42 am to lsuconnman
quote:
Icahn is still reeling from last summer’s report, and it seems like everyone is eagerly waiting for another dividend cut to declare IEP to be all but dead.
Icahn really did it to himself/his company.
There was a thread on here a little over a year ago where a couple of posters were touting their belief that IEP was a solid investment with a fat div that could be counted on. It seemed to hinge on their “fondness“ for Carl Icahn (the individual). One indicated that he had a heavy position because he loved the dividend payout and had faith in Carl. I don’t remember how invested the other one was. But IEP had been having nothing but problems, so I was trying to introduce some caution in being long (I’ve only owned IEP once and that was years ago… and I didn’t keep it for long).
There are times when “hero worship” works: AAPL, TSLA, etc. But when issues begin to hit, one after another, hero worship of a CEO can lead to big losses.
Posted on 8/30/24 at 8:51 am to lsuconnman
WIll see if Hindenburg met their match
Here is the whole report - Some legit issues, and some "creationism" by Hindenburg to get their outcome.
https://hindenburgresearch.com/smci/
Sizable section of them finding ways to sell to Russia after war start. After-sales support was a chunk, take your own stance. Crappy post -sales support is not unique to SMCI. Using people's linkedin as proof of something bad, etc.
Here is the conclusion from the report
I am not adding, but I am not selling my last shares either until I see what is happening with the stock split in October.
Looks like Hindenburg has a 60% kill rate going
quote:
In a client note, JPMorgan analyst Samik Chatterjee said Hindenburg's report was "largely void of details around alleged wrongdoings from the company."
Chatterjee reiterated his overweight, or buy, rating on SMCI stock with a price target of 950.
"It is not surprising that the company has areas for improvement to further refine governance, transparency, and communication with investors, which would be more appropriate for a company of its size following its recent spurt of growth in conjunction with AI server demand," he said. "However, the lack thereof does not immediately suggest wrongdoing by the company, in our view."
Here is the whole report - Some legit issues, and some "creationism" by Hindenburg to get their outcome.
https://hindenburgresearch.com/smci/
Sizable section of them finding ways to sell to Russia after war start. After-sales support was a chunk, take your own stance. Crappy post -sales support is not unique to SMCI. Using people's linkedin as proof of something bad, etc.
Here is the conclusion from the report
quote:
Conclusion: A Serial Recidivist
All told, we believe Super Micro is a classic case of recidivism. Its actions suggest that it hasn’t changed from its checkered past regarding its revenue recognition and accounting practices.
While the company gained an initial lead in supporting the AI industry, it seems to be cutting corners on its accounting, sanctions compliance, and product quality, all while more credible competitors eat away at its margins and market share.
I am not adding, but I am not selling my last shares either until I see what is happening with the stock split in October.
Looks like Hindenburg has a 60% kill rate going
quote:
Barron’s turned to history to try to get a sense of the outlook. We compiled a list of 10 companies Hindenburg has published reports on over the past few years and looked at their respective stock performance over the following six months, not including the days the research was released.
Those companies include Icahn Enterprises
IEP
0.72%
, Block
SQ
-0.41%
, Welltower, Establishment Labs Holdings, Singularity Future Technology, Mullen Automotive, Natera, Standard Lithium
SLI
-1.62%
, Tecnoglass, and DraftKings
DKNG
-0.53%
.
Only six out of those 10 stocks posted losses, according to Dow Jones Market Data. Welltower, Establishment Labs, Natera, and Standard Lithium all rose in the six months following the reports, and each were back at pre-report levels in that period.
This post was edited on 8/30/24 at 8:56 am
Posted on 8/30/24 at 10:35 am to DarthRebel
What about lordstown, nikola, clover, Kandi?
Posted on 8/30/24 at 10:21 pm to lsuconnman
quote:
What about lordstown, nikola, clover, Kandi?
I do not know, tell us. If you want to follow Hinderburg, go for it. Your money, do what you want.
Posted on 9/3/24 at 8:54 am to DarthRebel
Let the battle begin
https://in.investing.com/news/stock-market-news/smci-issues-letter-to-customers-and-partners-ceo-has-strong-confidence-in-teams-4411408
https://in.investing.com/news/stock-market-news/smci-issues-letter-to-customers-and-partners-ceo-has-strong-confidence-in-teams-4411408
quote:
Regarding the delayed Annual Report, Liang explained that the Audit Committee of the Board of Directors has formed a committee to review internal controls and other matters.
However, he reassured stakeholders by stating, "We don't anticipate any material changes in our fourth quarter or fiscal year 2024 financial results," indicating confidence in the company's financial stability.
"This is good news. I continue to have strong confidence in our finance and internal teams," he added.
Posted on 9/26/24 at 11:19 am to slackster
The justice department has entered the picture
US Justice Department probes Super Micro Computer, WSJ reports
10-1 split was scheduled for 9/30.
Still have 12 shares left I was keeping for the split, but ugh.
US Justice Department probes Super Micro Computer, WSJ reports
quote:
(Reuters) -The U.S. Department of Justice is investigating Super Micro Computer (SMCI), the Wall Street Journal reported on Thursday, nearly a month after short-seller Hindenburg Research alleged "accounting manipulation" at the AI server maker.
Super Micro's shares fell about 12% following the report.
10-1 split was scheduled for 9/30.
Still have 12 shares left I was keeping for the split, but ugh.
Posted on 9/27/24 at 9:55 am to DarthRebel
This has been a rough ride. Im sitting on 400 shares with a cost basis in the 600's. Im selling calls to earn premium while I wait, but Im thinking there will be more bad news in the near future. Where there's smoke, there's fire. Im starting to think it may be time to cut losses and move on...
Posted on 9/30/24 at 9:48 am to LSUTOM07
quote:
Im sitting on 400 shares with a cost basis in the 600's
Damn. There should be a AI rebound in Q4, IMO. NVDA will be releasing their new chip to market.
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