Another historical black sheep?
$Super Micro Computer (SMCI.US)$ reminds me of Worldcom and Enron. Fudging books, hiring back employees fired earlier due to business malpractice, negative free cash flow, etc. So many similarities.
I started to dig for more SMCI info after the Hindenberg report. I am shocked. This was so promising on my portfolio. It could turn around but can it be trusted?
Make money where you can but tread with caution.
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An analyst building the trader mindset with deep understanding of day trading and value investing.
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Tonyco : Accused of channel stuffing (you ship a customers order before they have paid and inflate sales artificially) and related party transactions (CEO's brothers companies, essentially no revenue changes but looks like it on cash flows and sales) equal to $983M over the last 3 years.
I was gonna dig in more, and I may still if I get bored enough lol, but I decided it was too much work for free.
Tonyco : For those interested, you'll be looking for:
1:) Unusual revenue spikes
2:) Discrepancies in cash flows
3:) Specifically transactions involving the CEO and his family analyzed for discrepancies between disclosures and sales/cash flow
R30R OP Tonyco : Spot on mate. And to believe I traded this from 900 into the thousands mark aiding their grand scheme of inflated bookkeepping.
Surely a company if this size, in the new era (post Enron, Lehmann and the likes), part of top funds, must have been thoroughly audited! But no. Apparently where there is will, there is a way - even for the ones with a bent moral compass.