Super Micro Computer Shares Plunge 35% As Auditor Resigns After Raising Concerns Months Earlier

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Super Micro Computer Shares Plunge 35% As Auditor Resigns After Raising Concerns Months Earlier.

Transcript

00:00Oh my gosh, stop, SMCI, funny we just talked about it right now.

00:05Holy, what a disaster.

00:07Breaking right now news.

00:10Thank you, Chat Lee.

00:11Supermicro, computers, independents in the pro.

00:15Independent auditor, Ernst & Young,

00:17resigns over governance and transparency concerns.

00:20Citing doubts on boards' integrity and reliability

00:24of financial statements.

00:25Oh my gosh.

00:28You've got the auditors bailing.

00:32Are they cooking the books?

00:34It's unbelievable that we had.

00:37And who was the short seller that

00:41came out with the allegations of cooking the books?

00:44Do you remember?

00:45Was it Hindenburg?

00:46Was it Hindenburg?

00:47Wow, what a call.

00:49What a call.

00:51What a call.

00:54I mean, it's down 23% here right now.

00:57The auditor bails.

01:00Holy, what a disaster.

01:02I can't even fathom how much this story has turned.

01:06And again, when companies, when you start challenging

01:10whether the books are right, accounting issues,

01:14Kramer always says it, you can love him or hate him,

01:16but he's absolutely right on this.

01:18Accounting issues equals sell.

01:19When you have accounting issues, you just can't own the stock.

01:22I still own a piece of this SMCI,

01:24and it's been a disaster.

01:25It was my best stock of the year in the first half,

01:27and then I had sold and re-bought some,

01:29and I wish I would have re-bought none,

01:31because this has been an epic disaster.

01:33But I cannot believe that we have this.

01:34This is the story of the day.

01:36It all of a sudden just became the story of the day.

01:38Ernst & Young resigns over governance and transparency

01:41concerns.

01:42It's right from your Benzinga Pro right now.

01:43That is unbelievable.

01:46Holy mackerel.

01:47I got to check on my portfolio real quick.

01:50Are you short SMCI?

01:52No, I'm long.

01:54I'm long a little piece, and it's a mess, man.

01:56I mean, at this point in time, maybe just cut the loss

01:59and you get out and be happy that you

02:01made money in the beginning half of the year with it,

02:03because the auditor resigns citing doubts

02:08on board's integrity and reliability

02:10of financial statements.

02:11So they're going in there, looking at all this,

02:14and they're like, oh, this is just a mess.

02:16We're out of here.

02:17I'm like, holy crap.

02:18That's about the worst possible thing that

02:20can happen to a stock.

02:22It looks like Ernst & Young doesn't want to be like Arthur

02:25Anderson involved with a company.

02:28I don't think I've ever heard of that before.

02:30I don't know if I can remember a company having accounting

02:33issues, hiring an accounting firm,

02:36and the accounting firm quits.

02:40When you say it simplistically like that, it's a jaw dropper.

02:44It's a jaw dropper.

02:47I'd never say don't sell stocks in the hole, but I don't know.

02:51Again, if there's accounting issues here,

02:53talking against my book here, I haven't sold any shares

02:56of the shares that I had bought.

02:58But wow, it was just starting to look a little bit.

03:0250 was toppy.

03:03It was trying to break out over 50.

03:04There's just like a news flow that's coming here.

03:08You've got to be right.

03:10The books have got to be correct.

03:12You can't like, I don't even know what to say.

03:15I'm just in shock.

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