SMCI announced that Nasdaq has accepted its compliance plan and extended its filing deadline to 25 February 2025. SMCI added that it should be able to comply with the extended deadline.
SMCI's share rose more than 9% in the morning. I would suggest to take profit on any gains today. The extension given was anticipated and should have been priced into the share price.
Any incremental gain in SMCI's share price should come from
1. Confirmation of non-reinstatement of financial reports (minor gain in share price).
2. Audited reports by BDO do not vary much from unaudited reports (minor gain in share prrice).
3. Future projection of revenue and gross margins (major gain/loss in share price).
Ceteris paribus, for SMCI to regain its pre-PWC resignation share price of around $49, it will likely be more than the fulfillment of compliance filings. It has to be confirmation and confidence that its business is a compelling growth story again.
I will exit my entire SMCI position and focus on other companies.
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Thanks for sharing. Which stock would you look at?