SMCI 😱 Super Micro Computer Craters 30% after Auditor Resigns 🤬 Super Micro Pole-Vaults Over Tesla to Be Second Most Active Stock Option as Auditor Quits
$Super Micro Computer (SMCI.US)$ Wall Street Aliens 👽 are taking advantage…of this dip in stock price.. Just my opinion 🤷🏽♂️
Be greedy when others are fearful. Be fearful when others are greedy.. Warren Buffett
I’ll start short and if momentum returns to the stock, I’ll go long
Question, I’ll need to answer long term is are there any business performance issues with this company? If yes, I’ll stay short. If no, I’ll go long…
Question, I’ll need to answer long term is are there any business performance issues with this company? If yes, I’ll stay short. If no, I’ll go long…
Exactly 1 week ago, someone bought 3,000 put contracts on $SMCI with a $29.00 strike price and an expiration date for this Friday.
EY announces that they are no longer willing to audit $SMCI and the stock crashes 35% in minutes.
These puts were bought for $0.05 and are now trading at $1.55.
That's a +3,000% gain in 1 week. ( see pics below and in comment section for proof )
EY announces that they are no longer willing to audit $SMCI and the stock crashes 35% in minutes.
These puts were bought for $0.05 and are now trading at $1.55.
That's a +3,000% gain in 1 week. ( see pics below and in comment section for proof )
I’m going back in at $30-$32 on SMCI. Everyone will have get their senses back tomorrow and the stock will go back up. One percenters don’t let a good storm go to waste so they are exploiting the accountant resigning. One percenters are flipping it. In my opinion.
Congratulations to those that bought. I bought a large chunk at $32.xx. It’s a short for me. I’ll probably sell at $38-$45 for a quick 30%plus profit for some FCF.
My trailing stop loss hit at $37.50. So I made $5/share on 5,000 shares for a $25k profit. If it drops to $32 again I’ll rebuy. I have done this with SMCI before the split. I learned from Richard’s play with Tesla to find chaos, execute quickly and make a quick profit. SMCI is a great company with a great products however their organizational skills internally with financials is a mess that can be exploited. SMCI doesn’t scare me because the prices has nothing to do with their products. It’s a great company that I believe will do well long term. Just my opinion. I’m just going to use it as a short for now but will go long at some point. Happy Hunting 🚀❤️
Congratulations to those that bought. I bought a large chunk at $32.xx. It’s a short for me. I’ll probably sell at $38-$45 for a quick 30%plus profit for some FCF.
My trailing stop loss hit at $37.50. So I made $5/share on 5,000 shares for a $25k profit. If it drops to $32 again I’ll rebuy. I have done this with SMCI before the split. I learned from Richard’s play with Tesla to find chaos, execute quickly and make a quick profit. SMCI is a great company with a great products however their organizational skills internally with financials is a mess that can be exploited. SMCI doesn’t scare me because the prices has nothing to do with their products. It’s a great company that I believe will do well long term. Just my opinion. I’m just going to use it as a short for now but will go long at some point. Happy Hunting 🚀❤️
Supermicro is a global technology leader committed to delivering first-to-market innovation for Enterprise, Cloud, AI, Metaverse, and 5G Telco/Edge IT Infrastructure. We are a Rack-Scale Total IT Solutions provider that designs and builds an environmentally-friendly and energy-saving portfolio of servers, storage systems, switches, software, along with global support services.
$Super Micro Computer (SMCI.US)$ pole-vaulted over $Tesla (TSLA.US)$ to become the second most active stock option amid increasing demand for protective put options that could shield the holder from further downside potential.
SMCI shares gapped down 30% to the lowest level since January after the IT solutions provider that sells liquid-cooling solutions to $NVIDIA (NVDA.US)$ said its auditor, Ernst & Young, resigned. A filing with the Securities and Exchange Commission showed that the auditor received additional information that "raised questions, including about whether the company demonstrates a commitment to integrity and ethical values."
An auditor change further delays SMCI's 10-K filing with the SEC for its fiscal year that ended June 30, "potentially fueling more doubt in the validity of its past financials," Bloomberg Intelligence analyst Woo Jin Ho said in a note.
(To see the options ranking, click below. For $Super Micro Computer (SMCI.US)$ chain, click below. To see $NVIDIA (NVDA.US)$ chain, click below. For the US options market page, click below.)
More than 1.32 million contracts changed hands as of 12:21 p.m. in New York Wednesday, making SMCI the second most-active stock options, just behind $NVIDIA (NVDA.US)$'s 1.42 million contracts, exchange data tracked by moomoo showed.
More than half of the SMCI trades are for put options, the heaviest volume of which are those that give the holders the right to sell the stock in two days at $42.50 each.
The stock's slump to $33.31 on Wednesday meant put options that are expiring on Friday with a strike price of $34 or higher are now in the money. The most heavily traded contract, the $42.50 put, saw its price jump more than 2,600%.
SEC's probes against Ernst & Young (EY) were primarily due to two significant issues. First, EY faced charges for its audit professionals cheating on CPA ethics exams and misleading the SEC during the investigation by withholding evidence of this misconduct
Second, EY was charged with violating auditor independence rules by improperly soliciting confidential information from a client's Chief Accounting Officer during an audit pursuit, undermining their objectivity and impartiality. These actions resulted in significant penalties and highlighted failures in maintaining ethical standards and integrity.
SMCI faces increasing probability of getting delisted, as the company grapples with the delay in its regulatory filing and the challenge of finding a new auditor that would be willing to step into a "a situation that Ernst and Young was not comfortable with," Bloomberg quoted a Wedbush analyst as saying.
Can SMCI stage a turn around? Share your thoughts in the comments section and if you have a price forecast for the stock, please vote below.
Super Micro Pole-Vaults Over Tesla to Be Second Most Active Stock Option as Auditor Quits
Super Micro Computer stock (SMCI) cratered Wednesday morning, falling over 30% after a filing revealed accounting firm Ernst & Young (EY) has resigned from its relationship with the tech company.
In the resignation letter, EY said: “We are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management's and the Audit Committee’s representations and to be unwilling to be associated with the financial statements prepared by management, and after concluding we can no longer provide the Audit Services in accordance with applicable law or professional obligations.”
SMCI (Super Micro Computer) is considered a good investment by some analysts, thanks to its first-mover advantage in the design of GPU-based compute systems and liquid-cooled rack-level solutions. This puts it in a strong position to benefit from growing investments in AI infrastructure. In fact, Needham forecasts a revenue compound annual growth rate (CAGR) of over 55% from fiscal year 2021 to fiscal year 2026 ¹.
Here are some key points to consider:
- *Analyst Ratings*: The average analyst target price for SMCI stock is $783.67, representing a potential upside of over 74%.
- *Growth Potential*: Argus Research is even more bullish, with a Buy rating and $1,000 price target, citing SMCI's positioning within transformational AI technology ¹.
- *Volatility*: SMCI's stock price has been volatile, with a 52-week low of $22.66 and a 52-week high of $122.90 ².
- *Industry Rank*: SMCI's industry, Computer-Storage Devices, ranks in the top 25% of Zacks Ranked Industries ².
Overall, while SMCI appears promising, it's essential to weigh the risks and potential rewards before making an investment decision.
Super Micro Computer stock (SMCI) cratered Wednesday morning, falling over 30% after a filing revealed accounting firm Ernst & Young (EY) has resigned from its relationship with the tech company.
In the resignation letter, EY said: “We are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management's and the Audit Committee’s representations and to be unwilling to be associated with the financial statements prepared by management, and after concluding we can no longer provide the Audit Services in accordance with applicable law or professional obligations.”
SMCI (Super Micro Computer) is considered a good investment by some analysts, thanks to its first-mover advantage in the design of GPU-based compute systems and liquid-cooled rack-level solutions. This puts it in a strong position to benefit from growing investments in AI infrastructure. In fact, Needham forecasts a revenue compound annual growth rate (CAGR) of over 55% from fiscal year 2021 to fiscal year 2026 ¹.
Here are some key points to consider:
- *Analyst Ratings*: The average analyst target price for SMCI stock is $783.67, representing a potential upside of over 74%.
- *Growth Potential*: Argus Research is even more bullish, with a Buy rating and $1,000 price target, citing SMCI's positioning within transformational AI technology ¹.
- *Volatility*: SMCI's stock price has been volatile, with a 52-week low of $22.66 and a 52-week high of $122.90 ².
- *Industry Rank*: SMCI's industry, Computer-Storage Devices, ranks in the top 25% of Zacks Ranked Industries ².
Overall, while SMCI appears promising, it's essential to weigh the risks and potential rewards before making an investment decision.
Super Micro Computer Inc., known for its robust earnings and profitability, faces substantial challenges indicated by recent news reports.
The company posted strong Q3 2023 financials with impressive profits but is struggling with negative sentiments stemming from corporate governance issues, including the resignation of its auditing firm and allegations of securities fraud. Notably, the stock has seen a significant decline, reflecting these concerns, which could severely impact investor sentiment.
The industry itself lacks the support of a currently hot sector, reducing the growth catalysts that could drive the stock price upwards in the short term. Traders should remain cautious, as despite profitability, the broader uncertainties and news indicators bridge towards potential risks.
Overall, the stock does not present itself as a viable trading opportunity at the moment.
The high risk associated with SMCI stems from the combination of a sharp decline in stock price and negative news related to the company's corporate governance and accounting practices. The resignation of Ernst & Young as the company’s accounting firm raises red flags, making it difficult for investors to fully trust the company’s financial reports. Additionally, ongoing legal challenges amplify uncertainty and potential financial liabilities, which could further destabilize the company's stock price.
The high risk associated with SMCI stems from the combination of a sharp decline in stock price and negative news related to the company's corporate governance and accounting practices. The resignation of Ernst & Young as the company’s accounting firm raises red flags, making it difficult for investors to fully trust the company’s financial reports. Additionally, ongoing legal challenges amplify uncertainty and potential financial liabilities, which could further destabilize the company's stock price.
Despite a robust profitability score, these external factors introduce volatility and sway potential earnings. Therefore, the risk associated with this stock is considered high, warranting caution for prospective investors.
* Above ☝🏽 are recent things I read not necessarily my views.
* Q: Coach Donnie, are there any Guarantees with Stocks ETFs or the market overall?
* A: Yes. Nothing is guaranteed.
For ANY and all aforementioned/heretofore Stocks, ETFs, side hustles or other Assets/asset classes mentioned
Remember the following:
🚨 DISCLAIMER 🚨
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
I Share Because I Care. The aforementioned is for Informational Educational & Entertainment purposes ONLY, this is NOT investment advice.
You have to do what’s best for you and yours at the end of the day. There’s NO guarantees in Investing nor Asset Accumulation.
Reach out to your Financial Advisor, CPA and or CFP.
I am not a Financial Advisor, CFP nor CPA.
* Above ☝🏽 are recent things I read not necessarily my views.
* Q: Coach Donnie, are there any Guarantees with Stocks ETFs or the market overall?
* A: Yes. Nothing is guaranteed.
For ANY and all aforementioned/heretofore Stocks, ETFs, side hustles or other Assets/asset classes mentioned
Remember the following:
🚨 DISCLAIMER 🚨
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
I Share Because I Care. The aforementioned is for Informational Educational & Entertainment purposes ONLY, this is NOT investment advice.
You have to do what’s best for you and yours at the end of the day. There’s NO guarantees in Investing nor Asset Accumulation.
Reach out to your Financial Advisor, CPA and or CFP.
I am not a Financial Advisor, CFP nor CPA.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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pootpoot : uh this statistics u posted may be forged in the first place. not sure if that comes into your mind?
Coach Donnie OP pootpoot : Wall Street aliens
are taking advantage of this dip in stock price $Super Micro Computer (SMCI.US)$ .. Just my opinion. Be greedy when others are fearful. Be fearful when others are greedy.. Warren Buffett
I’ll start short and if momentum returns to the stock, I’ll go long
Question, I’ll need to answer long term is are there any business performance issues with this company? If yes, I’ll stay short. If no, I’ll go long
Coach Donnie OP pootpoot : It’s possible you’re correct @pootpoot I hope not because a lot of people will be hurt if so
10baggerbamm : I thought that building was a furniture outlet before. I just looked at the address and there's a for rent sign.. wonder what that means?
Coach Donnie OP 10baggerbamm : Whoa
Coach Donnie OP : SMCI 😱 Super Micro Computer Craters 30% after Auditor Resigns 🤬 Super Micro Pole-Vaults Over Tesla to Be Second Most Active Stock Option as Auditor Quits
Coach Donnie OP 10baggerbamm : Do you own any SMCI or have you ever?
Coach Donnie OP : Good Buy
or Goodbye 
baby
Time will tell
Never a dull moment in the market
胡空 HuKong : Very detailed analysis, you're great! Our ideas are very close, stocks are too high, finding a reason that doesn't need to be disclosed, letting the market guess on its own, causing panic with very little cost, and then they buy cheap stocks at the low point.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
I bought at 34, waiting to see if I can buy at 31. Wish you good luck 
Coach Donnie OP 胡空 HuKong : Congratulations
in advance @胡空 HuKong 
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