SMCI - Super Micro

[writser]

From the call yesterday:

 

Now, let me comment on the progress of our remaining delinquent SEC filings. Last quarter, we reported that we had submitted our fiscal 2018 financials for audit. We're now able to report that we had also completed work on the fiscal 2019 financials under both the 605 and 606 revenue recognition standards and submitted them for audit at the end of September.

 

Concurrent with the financial statement audit, we have continued the testing and assessment of our internal controls over financial reporting. As a result, we have prepared drafts of our SEC filings. The team remains laser focused on becoming fully current on our SEC filings, which also includes the 10-Q filing for this first quarter of fiscal 2020.

 

Net cash now ~$220m.

 

[writser]

Finally they are current on their financials (link).

[Foreign Tuffett]

Finally they are current on their financials (link).

 

Yeah, definitely good news. SEC filings now current through June 30th 2019. If one believes that all or most of the audit investigation expenses (see page 7 of the presentation released this morning) will be going away soon then this is still cheap with the caveat that it's nowhere near as cheap it as was when I started posting in this thread.

 

Encouraged by the news, I was able to get my grimy hands on some shares before the market opened at just a smidge above where the stock closed last night.

 

Re: The call this morning. With the caveat that I can't understand the CEO's heavily accented English, little new info was provided beyond what is in the new filings and IR presentation. They do plan on scheduling an analyst day once they are trading on the NASDAQ again.

 

 

[writser]

SMCI up ~12% today to ~$26 after it announces a relisting on Nasdaq and a small bump in guidance. Though I'm happy with my decision to sell around $22 in March 2019 one could make an argument that I should have sat on my hands a little longer while the story played out (i.e. restatements completed, uplisting, etc.). Still, that's easy to say in hindsight in a raging bull-market. I still have no clue what 'fair value' is here. Also, value investors sell too soon .. Or at least that's what I keep telling myself.

 

Also I'm wondering if Nate ever pulled the trigger.

[Foreign Tuffett]

The "special one-time discretionary" bonus program for the CEO is atrocious corporate governance. 

 

https://www.sec.gov/ix?doc=/Archives/edgar/data/1375365/000137536520000019/form8-k20200310.htm

 

The board seems to be rewarding him for getting the SEC filings current, but it was under his watch that the filings became egregiously delinquent in the first place. All the scuttlebutt I've done indicates that his wife (who still works for the company albeit in a different position) was one of the main offenders in permitting overly aggressive revenue recognition.