Take Your Profits Or Hold On To Super Micro Computer?

Motek Moyen
6.75K Followers

Summary

  • I am a profit-first quantitative analyst. SMCI has a +26.88% 1-month price return. The best move now is to cash out the paper gains.
  • On the other hand, you can hold on for greater gains if you think SMCI’s upside momentum will get stronger until November.
  • Seeking Alpha Quant, SA authors, and Wall Street say SMCI is a buy. EMA and RSI technical indicators are still bullish for SMCI.
  • The 46% TTM revenue CAGR is not sustainable. The COVID-19 tailwind for cloud computing is evaporating.
  • Being a midget competing against server hardware giants is likely why SMCI operates on a very low 15.40% gross margin.

Hispanolistic/E+ via Getty Images

The substantial +26.88 one-month performance of Super Micro Computer (NASDAQ:SMCI) should inspire you to rake in the profit. Cashing out paper gains after a massive gain is the most prudent thing to do. On the other hand, Seeking

This article was written by

6.75K Followers
Motek Moyen is a financial analyst, technician, and Adobe multimedia content creator. He studied Mathematics, Commercial Advertising, and Computer Science in the 1990s. He does not trade stocks.

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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