Multiple Positive Developments Are Not Yet Reflected In Super Micro's Shares

|
About: Super Micro Computer, Inc. (SMCI), Includes: AAPL, AMZN
by: CVC Research
This article is exclusive for subscribers.
CVC Research
Growth at reasonable price, event-driven, hedge fund manager, small-cap
Summary

Beginning with SMCI's September quarter results reported in mid-November, a number of positive developments have occured with only a minimal positive impact on the shares.

On November 15, SMCI reported a big Sept '18 quarter beat of ~$957M/$0.68 vs consensus of $838M/$0.44.

More importantly, in conjunction with the release, they put out an 8-K showing the expected impact of their ongoing restatement of FY15-17 results - the changes suggested are immaterial.

Subsequently, a Washington Post reporter wrote that Bloomberg (the source of the 'China Hack' story on SMCI that crushed the stock in October) has assigned a new reporter to re-investigate.

SMCI just filed a new 8-K stating that their 3rd party investigation revealed no evidence to support Bloomberg's "China Hack" claims and they sent a letter to customers saying so.

I have written several bullish takes on Super Micro (OTC:SMCI) since August when their stock took a big hit on the notice that their stock would be delisted from Nasdaq due to a