It is very likely to be delisted.
$Super Micro Computer (SMCI.US)$The company only has a little over 4 months to find a new audit firm and complete the audit. Previously, switched from Deloitte to Ernst & Young, now Ernst & Young has resigned, I don't know if the Big Four would still be willing to take on this hot potato. In addition, different auditors may have different requirements, which could lead to a restatement of the entire annual report.
In addition, there has been no response from the company regarding the allegation of 'undisclosed related-party transactions'. Now the DOJ is also investigating, I don't know if the SEC will intervene after a period of time.
In addition, no one is willing to do business with a financially fraudulent company. The recent news is that SMCI encountered cancellations, with NVDA directly handing the orders to local Taiwanese manufacturers, probably also giving some to Dell, this information is directly reflected in their extremely poor guidance. The moat in the server sector is not deep, and Dell has always been the leader in the field, so there is no need for SMCI to get involved.
The best outcome would be the management being collectively dismissed, and then the company being acquired. In the worst-case scenario, the company may go bankrupt.
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