
Enduring value guardian
Commemorative$Super Micro Computer(SMCI.US)This stock SMCI has pretty good earnings, and many people probably have strong bullish sentiment. But the market has already priced in its growth potential. Looking at the monthly chart, it's already on a downward trend and has hit rock bottom. However, despite good earnings, why is it still dropping? There must be deeper issues here. Currently, there are rumors about financial fraud and its failure to submit the Q3 earnings report on time. For a normal, healthy company, this could lead to delisting. The U.S. has zero tolerance for financial fraud—this is a fatal blow. Recently, it submitted the report to Nasdaq at the last minute and hired a new accounting firm. While this is a short-term positive, the recent surge in trading volume and high turnover rate suggest to me that insiders are dumping shares. So, the outlook for SMCI isn't optimistic. I think going long on this stock carries high risks, but shorting it with puts for the short term should be fine. It might rally tonight with Nvidia, but it'll likely get sold off. What do you all think?
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