$SUPER MICRO COMPUTER INC(SMCI)$ FAITH
SMCI's problems are actually not serious but is politicised. Perceptions, not the reality of the flawed inner workings of SMCI, shape the decline of its stock price and potential delisting. The notions of family pateonage that SMCI is alleged to do are things that are the norm, not the exception, of MNCs and many IPO companies. The cause of its decline is not due to its fundamentals, which are strong, but the market sentiment regarding the reputation and credibility of the E&Y Big Four auditor. In fact, the auditor did not even reveal any evidence of accounting fraud, but his reputation and decision to leave the firm for whatever reasons was critical in galvanising market sentiment against SMCI. The accusations made by the short seller back in August are also nothing serious; the notion of family patronage causing under/overreporting in revenues ia a big claim that is false unless proven, but right now no one wants to trust that SMCI will set things right, even if SMCI is later found to be right all along.
SMCI only has one problem: not to repeat its failure to file the report on 16 Nov or request extension, as well as to find an auditor. But who wants to be hired as its auditor, that will depend on whether that auditor firm has an agenda or is in cahoots with other big institutional investors link to the semiconductor competition, seeking to manipulate market sentiment to buy low and sell high before everyone else does.
We are going to see the classic phenomenon happening. In fact, some billionaires are already piling up their shares in SMCI, probably with insider info about what's to happen on 16 Nov.
SMCI is in a sorry state not because it is (which is false until proven true) but because it's been overperforming and The Establishment says no.
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- Basics101·11-08TOPIt’s not like EY has a clean slate. EY was fined $100 million by the U.S. Securities and Exchange Commission (SEC) after admitting that a significant number of its employees cheated on the ethics component of CPA exams over several years in 2022. More recently EY has been subjected to increased scrutiny by regulators in different countries, such as the U.K. Financial Reporting Council (FRC), for perceived audit failures or shortcomings in other high-profile cases.m leading to fines etc.LikeReport
- LeonardKSW·11-08I lost USD 25K for this shitty counter. I lost my faith.2Report
- AnkitJ·11-08I am 80% down. Any advice on how to play this now?LikeReport