-
I believe SMCI has taken many institutional investors by surprise, so no one should feel foolish for having invested in them. Around 20% of SMCI is owned by BlackRock and Vanguard !
That said, it's remarkable to see how SMCI is managing these challenges given the potentially serious consequences. -
They obtained a 1.5B loan at ZERO interest from a consortium of banks including JPM/Goldman, convertible to stock at $140. I would think they are less than happy about it too.
-
Hi G,
It's a rumour, but even if true it doesn't change anything. Filing a compliance plan was expected. They need to appoint new Auditors.
-
There is some chatter on Pistonheads about whether Nasdaq will accept 'the plan' or delist, today. There won't be any delistings today or any time soon.
- If a plan is submitted today the Nasdaq have 30 days to consider it. They can accept the plan they will be granted up to 180 days to comply.
- If they reject the plan, Nasdaq will issue a written statement with their reasons.
- The company has 7 calendar days to appeal. A hearing is then scheduled for between 30 and 45 days, where new information is presented.
- The company has a right of a second appeal and even after that they can appeal again, to Federal Court.
Cases of appeals that succeeded being Qualigen in 2021 and Evasion in 2024. In short filing the plan and appealing buys time. As has been said they must sign a new 'Big' audit firm, and in order to do that I would think the CEO/CFO and a few others need to resign.
-
Problem is, it' a red or black situation, gambling on the chance of a rise into profit or not.....
How lucky do you think you are?
-
Apparently they(smci) have a plan to announce on Monday to avoid delisting, should put a rocket under the sp, especially if they announce something positive to go with it.
-
Could have been a good gamble
-
I’m sure there will be further volatility but it’s the first positive news in a while. The reaction to signing BDO, a top 5 firm and auditors of much bigger companies, is as expected.
The committee took the view that retaining 3 shares for every 10 held originally was a reasonable and conservative approach given:
- We booked 138% profit
- On balance there was no evidence of accounting manipulation as cited even by EY.
- The rapid appreciation of the stock made them a short/miscreant target.
We don’t feel ‘smart’ and there are many take aways but one thing I can say. This holding was borne from a high degree of research and it received attention constantly. It still does. However this is a case of risk vs reward. This was a case of ‘Hold’ (modest residual balance) vs not a buy or a sell. Simply because there were too many unknowns whilst on balance the business is still very attractive.
Regards
Adam
-
Well, having been happy to leave things to the professionals (IM/Cobens) and always firmly in the "investing not trading" camp, I had a sudden rush of blood to the head on Saturday*, downloaded the Trading 212 app and bought some SMCI shares.
It's the first time I've done anything like this and it's a relatively small sum but enough to sting a little bit if it gets completely wiped out.
I must say watching the price change "live" yesterday was quite exciting and I can see how people can get hooked on it and also the risk of chasing losses etc.For me I think this will be a one-off experiment/fun/gamble and certainly not form part of my investing strategy but looking forward to seeing how things go over the next couple of months.
*no alcohol was involved in this decision
-
Set in your mind a figure to invest and then place part of that amount on the horse, sorry, company selected. if it rises, buy another share or two, if it falls, leave well alone!
T212 offers 5/24 trading currently on SMCI, I managed to sell a little bit earlyish this morning, then watched the price tumble!
It's just gone back to red for me! -
Set in your mind a figure to invest and then place part of that amount on the horse, sorry, company selected. if it rises, buy another share or two, if it falls, leave well alone!
T212 offers 5/24 trading currently on SMCI, I managed to sell a little bit earlyish this morning, then watched the price tumble!
It's just gone back to red for me!@ferret50 said in SMCI:
Set in your mind a figure to invest and then place part of that amount on the horse, sorry, company selected. if it rises, buy another share or two, if it falls, leave well alone!
T212 offers 5/24 trading currently on SMCI, I managed to sell a little bit earlyish this morning, then watched the price tumble!
It's just gone back to red for me!Thanks, I'm definitely viewing it more as a day at the races at the moment. If I come out with a profit then great, if not then hopefully I feel that the stake paid for an entertaining experience!
How quickly is the money back in your T212 account after hitting the sell button? And does that change if you sell outside of normal trading hours?
-
Funds enter upon selling, and are available to return to your linked account.
Remember that cash in T212 earns 5.17% paid daily.
I keep just trying to 'invest' the interest!
-
Funds enter upon selling, and are available to return to your linked account.
Remember that cash in T212 earns 5.17% paid daily.
I keep just trying to 'invest' the interest!
-
I note that SMCI are now trading at around $33, up from $18 a few days back, who else was brave enough to buy a few in the dip?
-
Hi Bogie,
I have little doubt, almost none, that they will file. BDO will be fully aware of the issues-they didn't sign on to waste everyones time. Further, the fact that Charles and David are still present makes me wonder exactly what EY had an issue with. We may never know but as I have said before, large accounting firms don't really want to perform audits, period. They provide the service but are fraught with risk for modest fees, $5M in the case of SMCI (EY) which might sound like a lot but back in the day when I was an auditor, the unilever audit was £20M-this was 25 years ago. I am speculating but the Board could have given them the perfect excuse to walk away, having ignored the internal control weaknesses highlighted in the Management Letter, a key component of mitigating audit risk.
I was sent a slide late last week which highlighted Nvidia largest customers by revenue. MSFT(Nr 1), Meta, (2), SMCI (3), with GOOG, AMZN, DELL and Tesla following. With SMCI being 151% higher than Dell. Clearly they are a critical partner and remain so for the simple reason(and at the core of our investment originally), future chip architectures are getting more powerful and therefore hotter. DLC is going to start dominating the data centre and SM has the very best total solution, and I say total-solution because it is not just about 'racks' which is what Dell would supply, it's about the cooling tower, the unique software to monitor the efficiency at the chip level (SuperCloud Composer). SM can retrofit or build from the ground up, an entire DC.
They now have to get the analysts back on side
Regards
Adam
-
I note that SMCI are now trading at around $33, up from $18 a few days back, who else was brave enough to buy a few in the dip?
@ferret50 I bought 11 shares at about $28. In truth, I found a small amount of money in a Schwab trading account which I didn't realise was there, and thought I'd have a punt. It really was gambling (as opposed to investing) but it looks like I'm up thus far.
I guess the question is what will happen to SMCI in the weeks and months to come? Adam is keen to tell us that the company has a great product and it seems to be sound, but the huge drop in share value is due to a drop in confidence. If the company is indeed sound (and I have no reason to doubt Adam - his research always seems to be exemplary) then it's just a matter of waiting until they have their audit completed and they file their necessary paperwork. At that point, is it unreasonable to expect the value of the shares to bounce back to where they were a month ago? Indeed, if NVDA chips are getting hotter then the demand for someone who can build good things to run them in which will keep them cool can only increase?
Perhaps I am being naive here. Perhaps I don't understand the risk. Perhaps my view of risk isn't the same as everyone else's. Perhaps I'm about to lose a chunk of money.
Perhaps, perhaps, perhaps ....
