Is Super Micro Computer Stock a Buy? 3 Things to Watch.

Group 1 - Super Micro Computer's shares have declined by 78% from their all-time high in March, primarily due to allegations of accounting manipulation and potential wrongdoing rather than company fundamentals [1][3] - Hindenburg Research's report accused Supermicro of accounting manipulation and self-dealing, leading to the resignation of its auditor, Ernst & Young, which raised concerns about the reliability of the company's financial statements [3][4] - The company is under investigation by the Justice Department, which is reaching out to former employees, further complicating its situation [3][4] Group 2 - Supermicro is at risk of delisting from Nasdaq due to non-compliance with auditor requirements and failure to file its annual 10-K report [5][6] - The company has until mid-November to submit a compliance plan, but the lack of an auditor complicates this process, raising concerns about its ability to meet deadlines [6][7] - If delisted, shares may move to over-the-counter markets, which could affect liquidity, although companies can regain compliance and relist [7] Group 3 - Despite the challenges, Supermicro reported preliminary fiscal first-quarter net sales of $5.9 billion to $6 billion, indicating a 180% growth compared to the previous year [8] - The current forward price-to-earnings ratio of 7.65 suggests that the stock may be undervalued, but uncertainty surrounding the company's situation may deter investment [8]