To The Moon

The fundamentals of the AI industry are under scrutiny as significant concerns persist. Recently, short-seller Hindenburg Research targeted AI server manufacturer $SUPER MICRO COMPUTER INC(SMCI)$, alleging 'accounting manipulation' in its detailed short thesis. The stock initially plunged by up to 12% following the report but managed to recover slightly by the close.

With SMCI priced around $500, the key question is: Are you going long or short? Is now the right time to buy?

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Click titles to read the full analysis:

1. @Tiger V: SMCI Under Scrutiny: Should You Invest?

Key Points:

Historical Concerns:

Recurring Accounting Issues This isn't the first time SMCI has been accused of accounting irregularities. In 2020, the company was investigated by the U.S. Securities and Exchange Commission (SEC) for similar issues, leading to restated financials and fines. SMCI has since pledged to avoid future violations, but the recurrence of such allegations raises concerns about corporate governance and financial transparency.

Market Sentiment:

Investor Caution Prevails The market's reaction reflects investor caution. Despite SMCI's attempts to reassure stakeholders, the shadow cast by these allegations has led to increased scrutiny and a potential loss of investor confidence. While some investors may see the price dip as a buying opportunity, others may view it as a signal to stay on the sidelines until more clarity is provided.

2. @kibkibkib: SHORT SQUEEZE time!

Key Points:

SHORT SQUEEZE time! Hindenburg is just another glorified short seller masquerading as a "research" company. They use their "research" to trigger fear and profit in millions from shareholders. SQUEEZE them out!

Basically their allegations is based on past offenses that have already happened, and the returned staff was one of the cofounders. It is not surprising for cofounder to return.

Most of their report were complaints from disgruntled ex-employees, with nothing material or anything substantial for them to make a law suit.

If SMCI indeed has accounting frauds issues right now (not in the past), it is only right for them to produce material evidences for SEC to further investigate.

Same as Block Report, most of the report is just hearsay and nothing criminal. A lot of subjective perspectives like how SMCI should present their figures and disclose each and every investments they made. And digging at SMCI for providing OEM without disclosing. That's just perspective not criminal activities. They are just creating fears to make money for themselves.

And the timing? hit SMCI when it is down and before stock split? Despicable

3. @Barcode: Who brought the dip?

Key Points:

Who brought the dip? That report usually sees a spike but not downwards. They saw the technicals breaking down & dropped this right on down onto it.

The Hindenburg Research report on Super Micro Computer, Inc, released on August 27, 2024, outlines several critical allegations against the company:

1. Accounting Manipulation: Hindenburg alleges that Super Micro has engaged in accounting practices that manipulate its financial statements, potentially inflating profits or hiding liabilities.

2. Sanction Evasion: There are claims that SMCI might be involved in activities that help it or its partners bypass international sanctions, which could involve dealings with entities or regions under trade restrictions.

3. Deteriorating Product Quality: The report suggests that SMCI's products are of inferior quality compared to competitors, and this quality is deteriorating, which could impact future sales and market share.

4. Governance and Compliance Issues: Hindenburg points out significant governance and compliance problems, indicating that SMCI might not adhere strictly to regulatory standards or corporate governance best practices.

4. @SPACE ROCKET:

Key Points:

Short all you want, Hindenburg Research.

Obviously you lack the balls to short, that's why you can't do it in silence, just like another Kerrisdale shorting $Riot Platforms(RIOT)$ and $MicroStrategy(MSTR)$ months back.

Anyways, thanks for the short because you let me purchase SMCI at such a desirable price 🙌🙌

Happy covering your short when the short squeeze happens 🤣😂

5. @hawshy:

6. @SanL:

Questions for you:

Are you going long or short?

Is now the right time to buy?

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⏰Duration

• 4 September (24pm EDT)