SMCI $60 EASY THEN MUCH MORE.. READ THE IDEA. pls.... SMCI IS THE ONE I AM BETTING WILL POP THE MOST. The delays in filling are nothing more than growing pains. Read this report entirely, so that you get the idea. MSCI fundamentals are as strong as ever.
The rest is secondary, it is sales and revenue all that matters, the delays have been explained. The endorsement is NVDA, the super star of companies. The Hindenburg Report ruffled feathers, the feathers of limelight seekers at the SEC, the 3 minutes of fame. A nothing burger in the end. Meanwhile, what a gift. Finally a lotto ticket with great odds.
SMCI Super Micro - regulatory filing this and that, what maters is how good their products are and how much they have sold. The answers to these to premises, is a lot. And a lot means return on investment. The delay filling is likely the product of extreme difficulty in reporting compliance. Did you know this same issue is facing thousands of companies around the world. It seems that the global IQ has declined, hehe, no no for real, and number crunchers need to be extremely analytical, the things is that analyticals make much more in other professions, and what is left is deficient.
I know full well that SMCI will file what it needs to file, but I also know their products are second to none, and that means caching for the shares.
The background and preamble:
Super Micro Computer, Inc. (SMCI) is delaying its filing of the annual 10-K report due to several issues:
Internal Control Assessment: SMCI has stated that additional time is needed for management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024
Accounting and Financial Reporting Concerns: A report by Hindenburg Research alleged accounting manipulation, including premature revenue recognition and undisclosed related-party transactions. These allegations have raised concerns about the company's financial practices and contributed to the delay
Regulatory and Legal Scrutiny: The delay has attracted regulatory attention, including a non-compliance notice from Nasdaq, which requires SMCI to file the report or submit a compliance plan within 60 days from the notice date. Additionally, there is an ongoing investigation by the U.S. Department of Justice into the company
These factors have collectively contributed to SMCI's decision to delay filing its annual report.
Key Dates
Original due date: August 29, 2024
Non-compliance notice date: September 17, 2024
60-day deadline: Approximately November 16, 2024 (60 days from the notice date)
Maximum potential extension: Approximately February 25, 2025 (180 days from the original due date).
SMCI
Potential Accounting Issues
The delay comes amid allegations of accounting irregularities:
On August 27, 2024, short-seller Hindenburg Research published a report accusing SMCI of "glaring accounting red flags" and engaging in a "fraudulent revenue recognition scheme"
Hindenburg claimed SMCI was prematurely recording revenue for equipment that could not be delivered or installed, and booking revenue for faulty or incomplete products
I beleive that SMCI is growing so fast, and that massive growth ia generating issues in the process, issues that many companies face, however, in the case of SMCI considering Hindenburgs Opportunistic take on markets, saw SMCI and NVDA at a fractal pivot point and the took advantage, however, as SMCI is an illiquid stock, especially before the split, they had to put another bullet to tranquilize the herd and now cause it to come back and buy all the shares bach much faster giving them no change to adjust. Like what just happened to tesla for example.
All these accusations lead to ..... Regulatory Scrutiny.
Regulatory Scrutiny
The filing delay has attracted regulatory attention:
SMCI received a notification from Nasdaq on September 17, 2024 stating that the company is not in compliance with Nasdaq listing rule 5250(c)(1), which requires timely filing of periodic reports with the SEC
On September 26, 2024, it was reported that the U.S. Department of Justice had initiated an investigation into the company
So here is where we are.... SMCI is the working partner for NVDA and Charles Liang seems like a smart man. The SMCI servers sell super well.
I beleved SMCI is a super clean entity, and that they will comply with fillings, but what is much more relevant to me is cash made, and cash made with SMCI seems huge.
