Super Micro Computer Stock Discussion

Kyle Schramm : what's up?

104837679 : it's staying around 31

10baggerbamm 104837679 : Until it doesn’t

10baggerbamm : Jensen is a customer he’s not on the Board of Directors he doesn’t own stock he’s just a customer. Neither Jansson nor Nvidia ever invested any money in supermicro as a shareholder as an insider.

Too late : The key point is not here, AMD's financial fraud can directly affect nvidia's so-called "very high demand".

咖波猫 OP Too late : Agree

Money Thrill OP : A Super Micro spokesperson told "CNBC" in a statement that the company “disagrees with E&Y’s decision to resign, and we are working diligently to select new auditors.”
Representatives for Ernst & Young and Deloitte didn’t respond to requests for comment?

LivingYears Money Thrill OP : this could be the straw that breaks the camel's back. 10k late, attack from Hindenburg, insider whistle blow etc can still be explained away. it's a I say U say situation. now an independent 3rd party that's supposed to sign off on what SMCI got to say is refusing to say it, tells alot. the reasons given by E&Y strengthened Hindenburg accusations. possibly more downside...

RandomTrader_ : To my knowledge, I have friends that have worked in EY, they usually don’t just leave a client like that especially when there’s millions to be made for EY. Them walking away straight up before earnings season seems to show huge red flags in SMCI’s books.
At this point, buying in on this stock feels more like gambling then value investing. I might even short this stock depending on what it closes by end of today’s trading session.

MonkeyGee : if E&Y had anything, the right thing to do is issue a Qualified or Adverse Opinion. If the disagreement remains unresolved and the auditor believes it impacts the fairness of the financial statements, they may issue a qualified opinion, an adverse opinion, or, in extreme cases, disclaim an opinion on the audit report.  
Right now, all I'm seeing is that E&Y is upset that the client didn't agree with their opinion.  why is it not factual enough to stated on paper?  because it's just an opinion.

mzZephyr : too many … run while you still can! i made the painful decision to cut loss yesterday. not worth taking the risk anymore!

intellectual Sheep_2 : don't talk nonsense

74754703 intellectual Sheep_2 : Ooooh, could be, announce new auditor, good as gold

hodlmenot 74754703 : Actually not that straight forward, new auditors always need to have a handover from the previous ones, its very unlikely that a big 4 auditor will pick them up due to their reputation.  Im still holding a small position but not planning to increase.

MonkeyGee : Not sure if I understand.   if EY is so sure about their opinion, then make an official opinion.  
If an auditor,  disagrees strongly with a client’s financial statements, issuing an **adverse opinion** or **disclaimer of opinion** is indeed an option, and it’s their duty to do so if warranted. However, several factors make auditors cautious before issuing these opinions:
1. **High Standard of Proof**: Auditors need substantial evidence to support an adverse opinion or disclaimer. If they can’t conclusively prove material misstatements or pervasive issues, they may risk being challenged by the company or stakeholders. Auditors rely on evidence, not just suspicion, to substantiate their stance.
2. **Professional and Legal Responsibility**: Issuing an adverse opinion or disclaimer carries significant weight and legal implications for both the company and the audit firm. If an audit opinion is later proven to be unwarranted or based on incomplete evidence, the audit firm could face legal challenges, reputational damage, or regulatory scrutiny. Auditors take these steps cautiously to avoid misjudgments.
3. **Pressure and Negotiation**: In high-stakes audits, auditors sometimes face pressure from clients or complex negotiations over the audit findings. Audit firms may work with management to resolve issues rather than escalate to an adverse opinion, especially if management is open to making adjustments or disclosures.

MonkeyGee : 4. **Impact on Stakeholders**: An adverse opinion or disclaimer can have serious financial and reputational impacts on the company, potentially affecting stock prices, investor trust, and access to capital. Auditors may prefer to seek alternative solutions, like highlighting specific concerns in the “Basis for Opinion” section, before taking a drastic step.
Issuing an adverse opinion or disclaimer without fully substantiating their stance could compromise their professional standing and relationship with clients. When auditors have strong evidence of major issues, though, they are obligated to issue the appropriate opinion—regardless of the repercussions.

Fran31 : Now what?

118062799 : now delist?

105449251-momo OP 118062799 : buy

105449251-momo OP Fran31 : buy

Fran31 : Ok

Mars Mooo OP :

Mars Mooo OP :

ODin66 : Actually everyday XRP is red.

Mars Mooo OP ODin66 : It was green on October 29, 2024.