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