All things STOCKS

#16,602
#16,602
Forbes dot com:

Super Micro Computer stock (NASDAQ: SMCI) fell by about 6% in Tuesday’s trading and remains down 54% over the past month amid significant corporate governance concerns and questions about the company’s financial reporting. Hindenburg Research published a report highlighting several red flags in SMCI’s accounting practices. Moreover, the company delayed filing its annual financial statement in August for the last fiscal year, putting Super Micro out of compliance with Nasdaq exchange listing rules, which require timely filings with the U.S. Securities and Exchange Commission. Now, Super Micro faces a critical deadline on November 16th to either file the delayed report or submit a plan for regaining compliance. If it fails to do so, the company risks being delisted from the Nasdaq. However, there’s a big hurdle here. Super Micro’s auditor Ernst & Young resigned in October, noting that it was unwilling to be associated with the financial statements prepared by the company and that the company will likely need to find a new auditor to be able to file an audited 10-K filing or to effectively convince the SEC that it is on the job.

SMCI stock has generated better returns than the broader market in each of the last 3 years Returns for the stock were 39% in 2021, 87% in 2022, and 246% in 2023.
 
#16,603
#16,603
Thunder Good-Oil said:
Forbes dot com:

Super Micro Computer stock (NASDAQ: SMCI) fell by about 6% in Tuesday’s trading and remains down 54% over the past month amid significant corporate governance concerns and questions about the company’s financial reporting. Hindenburg Research published a report highlighting several red flags in SMCI’s accounting practices. Moreover, the company delayed filing its annual financial statement in August for the last fiscal year, putting Super Micro out of compliance with Nasdaq exchange listing rules, which require timely filings with the U.S. Securities and Exchange Commission. Now, Super Micro faces a critical deadline on November 16th to either file the delayed report or submit a plan for regaining compliance. If it fails to do so, the company risks being delisted from the Nasdaq. However, there’s a big hurdle here. Super Micro’s auditor Ernst & Young resigned in October, noting that it was unwilling to be associated with the financial statements prepared by the company and that the company will likely need to find a new auditor to be able to file an audited 10-K filing or to effectively convince the SEC that it is on the job.

SMCI stock has generated better returns than the broader market in each of the last 3 years Returns for the stock were 39% in 2021, 87% in 2022, and 246% in 2023.
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11/22/2024 $17 SMCI puts:
$2.12/$2.15

SMCI: $17.75
SMCI the last week in October: $50
 
#16,604
#16,604
Incoming president is planning to shake things up.

The market does not like uncertainty.

Yesterday, defense contractors got smoked.

Thoughts of RFK, Jr is sending health care into a spin.

How do we play it?
 
#16,608
#16,608
Jax_Vol said:
Incoming president is planning to shake things up.

The market does not like uncertainty.

Yesterday, defense contractors got smoked.

Thoughts of RFK, Jr is sending health care into a spin.

How do we play it?
Click to expand...

Let it play out and buy best of breed.

Looking strongly at ABBV here.

I only have ISRG in medical so I know Im underweighted there...
 
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#16,609
#16,609
Jax_Vol said:
Incoming president is planning to shake things up.

The market does not like uncertainty.

Yesterday, defense contractors got smoked.

Thoughts of RFK, Jr is sending health care into a spin.

How do we play it?
Click to expand...

HHS is huge. Something like $1.5 trillion. A quarter of federal spending. RFK, jr is kind of an odd choice. But I don’t know how much influence he could have. Elon and Viv will be the disrupters. I doubt that they can squeeze much out of healthcare providers for renoguated Medicare. I think that RFK, jr’s anti-vax stance won’t have much effect. But pharma will probably be under pressure for a while until things clear up.

Defense is hard to call. We spend almost $1T which is 3x China and dwarfs the rest of the world. Trump will pressure allies to ramp up their contributions, so perhaps domestic military cuts will be offset a good bit by Europe, Japan, the ME buying more from the US based defense contractors.

I saw that PLTR was up a lot this morning. They have a lot of revenue per employee and are diversifying away from defense.

This might be a wild ride. At least until things settle down and it becomes clearer what DOGE can accomplish. The government contractors could do well if government shrinks and the commercial sector gets the dollars. Like when NASA shrunk and Space-X and Bezos ended up being more efficient alternatives.
 
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#16,611
#16,611
The 11/22 $17 SMCI puts probably go up or down 50% on Monday (assuming no news drops before markets close today). The NASDAQ filing deadline is tomorrow. If they miss I don’t know what the timeline would be to be delisted. Feels like a coin toss. It’s “trading”, not “investing”.
 
#16,614
#16,614
Jax_Vol said:
Incoming president is planning to shake things up.

The market does not like uncertainty.

Yesterday, defense contractors got smoked.

Thoughts of RFK, Jr is sending health care into a spin.

How do we play it?
Click to expand...
REGN
I own a bunch. Down a bunch (2.6%)today.
I'll try to add more as the knife falls.
 
#16,615
#16,615
SMCI is up $3.10 (16.68%) in extended trading/after hours. I should have sold them puts. But the possible NASDAQ delisting is too much of a coin flip. If that were to happen, single digits would happen quickly.
 
#16,616
#16,616
Thunder Good-Oil said:
SMCI is up $3.10 (16.68%) in extended trading/after hours. I should have sold them puts. But the possible NASDAQ delisting is too much of a coin flip. If that were to happen, single digits would happen quickly.
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For my tastes, that one is venturing too close into penny stock country.

Hindsight is 20/20, but you were wise to pass imo
 
#16,617
#16,617
Vol737 said:
Easy now!
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That RFK Jr nomination has sent most of healthcare off a cliff.

My thoughts:
1. People tend to over-react.
2. Probably a way to make a lot of money over next two months as Trump cycles thru some of these staff picks to find a group that the Senate will approve. He is making some non-traditional picks. Not saying that is right or wrong. But causing uncertainty which Wall Street hates.

One could even argue that he is intending to drive down the market under Biden. Then, he can take credit for all the uptick in 2025.
 
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#16,618
#16,618
Jax_Vol said:
For my tastes, that one is venturing too close into penny stock country.

Hindsight is 20/20, but you were wise to pass imo
Click to expand...

I only passed yesterday since the deadline is today. But it’s just the Q3 financials and they had already signaled that they weren’t going to make the deadline.

They have too much revenue and the assets to separate them from penny stocks. And even as bad as they’ve been, management isn’t as abysmal at corporate governance as penny stock companies.

I’m going to keep watching. SMCI and BITX are at the top of my watch list. I’m looking for something in the risky category that’s not expensive (I think that SMCI is now under 1x revenue). I’m also considering BA and DIS, but they aren’t as volatile.

Healthcare might be creating some buying opportunities. Pharma always scares me with potential hits from the feds. I might buy more XLV, but it is heavily weighted with Big Pharma. After things become clearer I might buy CURE (it’s supposed to be for short term trading, but it’s held up quite well in the LT).

I have Pepsi and Kraft-Heinz. I’m concerned about those with RFKjr’s agenda. But Kraft hasn’t participated too much so the downside could be somewhat limited. I also have McDonald’s, but I think they’ll adapt if necessary. I hold those shares because of their real estate holdings and the franchise model is a cash generating machine.
 
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#16,619
#16,619
allvol90 said:
Anyone in here good with the college 529 plans? My kids bank cds just matured so I cashed them in and was looking at the 529 plans. Feel free to pm me if you want so we don’t flood this thread or just post here. Just looking for some insight on either to use TNstars or make a Fidelity account. I thought about the UTMA account but I think that could end up hurting a little worse in the long run due to tax implications.
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How old are your kids? 529 is a nice option, I’m paying for mine through stocks that have been in their name since birth. My wife is also a teacher so the 25% coverage of tuition helps with the tax.
 
#16,620
#16,620
Thunder Good-Oil said:
DJT has a market cap of over $7 billion but only has institutions holding 6% of the shares.

52 week range is $11.75-$79.38. Current price is $30.50. This is what I would consider a very high risk stock that isn’t a good long term hold. The volatility makes it tradable. I’d take any quick gains and watch for bounces off of pull backs before going long again. IMO it’s not worth the effort to follow it. Maybe buy puts if they were cheaper.
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Got out, managed 12% return. Moved it to PLTR
 
#16,623
#16,623
Majors said:
it’s got a chance to run over the next few months.
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PLTR has an awesome CEO. I was in there when it was around $17-20 range. Now $60 something. Just couldn't see it taking off like that.

Lots of smoke and fire behind what they are really doing with their analysis. Very dependent on big government.

Probably a good buy with the new admin coming in there.
 
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