What are people’s thoughts on investing in supermicro. If this story turns out to be false are they undervalued at the moment?
- Their product is fungible, folks on the front line buying motherboards may just chose to avoid SuperMicro to avoid awkward conversations with their boss.
- They were having financial issues before, had some shady accounting and got delisted from Nasdaq. They're now traded over the counter.
- Last quarter their net earnings were $17M; that'll most likely be wiped and they'll go in the red.
- They've got $120M in the bank and $700M in quarterly operating expenses.
- The market can stay irrational longer than you can stay liquid.
Many companies are now likely auditing their systems for mystery chips. Many companies have learned of the hacked firmware distributed to Apple. Many in-progress orders may have been halted.
This may be fatal to them.
Hard to handle such circumstances in the natsec space when specific information is, by it's very nature, unverifiable.
https://www.theregister.co.uk/2018/08/22/supermicro_facing_n...
What is the story about?; Why was it released?; Is the timing significant?; Who are and will continue to be SM's customers? ...prospects for future customers? ...prospects for current and future earnings?
If you like the answers to those questions (and those are just the ones I could think of in 30 secs), you know what to do.
Cheers!