More SMCI drama

JPMorgan says Super Micro’s (SMCI) annual filing for fiscal 2025 highlighted material internal control weaknesses disclosed by the auditors. This came out today. How the stock reacts is anyone’s guess.
JP Morgan also highlighted customer concentration as a risk.

 

shit. This is completely new news.

 

It was announced today but who actually knows how new it is.

 

2 to 3 weeks ago, SMCI was bullish after it broke the declining trendline.

It was heavily traded on 19 Feb 2025 due to whatever reasons (PROFIT TAKING by those who bought it 2 to 3 weeks ago ????)

Since then, it doesn't look bullish at all.

The drama continues

 

Agree-

 

Down again.

 

Please no more prediction. I bought AMBA on your last tip (up to 90?) now down 33%...

I intuitively expected SMCI to return to its comfy 30-33 trading range since it was expected they'd meet their nasdaq obligations and nothing else has changed. It's a corrupt business that has cornered the market by keeping its margins super tight and giving no space to competitors. Pure capitalistic efficiency only the Chinese can do.

I'd expect a bottom around 27...

 

So on 19 Feb 2025, who were the

- smart wise investors/traders who took a handsome profit

- foolish investors/traders who missed the boat, but decided to chase after the boat
and bought tons of SMCI




End of Drama

 

It seems like AMBA & SMCI are good brothers.
They always go out together.

 

Supermicro has a very good product, however it is a corrupt business as @VicBee has stated. It always has been. I've bought & sold these small cap companies & I know whenever the management & directors all have the same last name there will be problems with corruption.

I remember investing in a company called OCZ which was the real pioneer in retail SSDs. Long before Micron or Samsung was selling to the retail crowd, OCZ was dominant. This was like 2004-5 I believe when the only SSDs were largely being used at the enterprise side and mainly for OLTP databases (Oracle, SQL Server, postgres, etc.). Unfortunately OCZ was even more corrupt than SMCI. The CFO was caught embezzling funds from the company and fled back to Taiwan. The company soon after declared bankruptcy. It was bought by Toshiba in this aftermath.

Supermicro is the go to brand for people who don't want bloated service contracts from Dell & HPE. Like I said before you can build high capacity storage servers from Supermicro at a fraction of the cost of Dell servers. The only real competitor is Asus owned ASrock Rack but they just started like 10 years ago.