What To Do With Super Micro Computer Shares

Summary:

  • Super Micro Computers (SMCI) faces significant risks, including potential delisting, due to ongoing accounting irregularities and related-party transactions, as highlighted by Hindenburg Research and auditor resignation.
  • The stock has experienced extreme volatility, plummeting 86.7% after a meteoric rise, driven by concerns over SEC and DOJ investigations.
  • Various options strategies are suggested for traders, depending on their outlook, including call options for a potential recovery and put options for further declines.
  • Friedrich Global Research avoids SMCI due to its overvaluation and accounting issues, focusing instead on long-term investments in consistently outperforming companies.

AI assisted CPU on motherboard

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It’s Complicated

There are a lot of moving parts and to be determined events clogging the future for Super Micro Computers (NASDAQ:SMCI). But there are some ways to play the possible moves, depending on what


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

DISCLAIMER: This analysis is not advice to buy or sell this or any stock; it is just pointing out an objective observation of unique patterns that developed from our research. Factual material is obtained from sources believed to be reliable, but the poster is not responsible for any errors or omissions, or for the results of actions taken based on information contained herein. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice.

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