Investment Q&A

Q: I have a few questions about the recent special committee report which found no “substantial concerns about the integrity of Super Micro’s senior management or audit committee”,

1) To what extent was the recent report actually “independent” and to what extent can it be relied upon by us as investors? I think the committee was appointed by the board so can the report be trusted? I

2). Can we assume that there’s no fraud? What do you make of the comment that there was no “substantial” concerns about management or the audit committee? It seems that there were issues but those were not “substantial” whatever that means.

Do we have to worry about fraud here or do we simply worry about whether there may a guidance issue? Thank you,

Jason

Q: Hi,
Is SMCI a buy today? How would you approach the outcome of an independent review? Does it mean the financial reports and projected growth are intact?
Regards.

Q: SMCI is starting to rebound. Thoughts on entering a position for a aggressive investor?

Q: Dear Peter et al:

I know you don't like to predict and set price targets. But with VRT/NVDA on a tear, surely one has to have a floor and a ceiling price target? I know they are your high conviction long term favorites.

I ask this question with a specific trade strategy on mind. Take a position with say 200 shares. Write a call, just one contract each. Even if one gets called away, I will have the other 100 shares to capture the price appreciation.

Any words of wisdom on this strategy? Price targets?

Thank you for your answer.

Q: Hi 5i
You mention that you lost confidence in smci. Does that mean it's in the penalty box forever or put another way, what would it take for you to consider ever investing in it again?
I'm interested in your thought process as a fund manager.
Is it just a matter of time passing with no cockroach sightings or would management have to change etc..
I no longer hold it but may reconsider one day.
Thanks

Q: Hello 5I. I’m at break even with Smci. Should I hold or move on and catch the next train up?
I presently hold NVDA,AXON,VRT. I’ve done very well with the other three, thanks to your us side suggestions. If I move, what would be your picks.
Thanks again for your great work
Maurice

Q: I'm trying to find reasons not to buy a little taste of this. With all of the oockroaches etc hiding here, what are the odds of a takeover? Would another company step in here and purchase and if so, what could a projected sale price look like? At what point does the risk/reward make sense if a buyout is unlikely?

My thought is that if the company/governance is terrible but the business is excellent there has to be a price that makes sense but admittedly I am just looking for a reason to do it!

Q: Who are competitors to SMCI, and which one would benefit most in long term from the tanking of SMCI so I can initiate a position today? Thank you.

Q: Is Peter and team still bullish on NVDA not withstanding Super Micro's issues?

Q: Hi 5i
What is 5i opinion on DELL, would 5I be interested at the current SP and where do you see it going from here and also into earnings....
Currently share holder at $148, would 5i continue to hold on with an eye to the future or exit....

Have they been been affected by SMCI affair...

Thx

Q: Hi
I'm curious as to how shareholders are affected by the following scenario... assume a delisting followed by a listing again. I think this happened before with smci but I am more interested in knowing about the impact on a shareholder who holds throughout. I.e. once relisted is it as if nothing happened with respect to the number of shares held before/after etc...
Thanks

Q: Can you do a head to head comparison between VRT and ANET as for as which one you would prefer going forward and why? Does one have a bigger risk of something going wrong (Yup I'm talking about you SMCI) than the other?

Q: Good Day,


Rough day in the markets Thursday. After mine and other questions, getting a sort of analysis paralysis trying to make the 'right' move. Some (potentially) attractive dips, and Looking to set up the accounts for the next couple months.

Current concerning holdings. Hold, Sell, or add?

ASPN
ATS
CELH
CRNT
CROX
SMCI
TMDX

For the adds and holds, please rank with the following names in terms of highest conviction and total returns in the coming year. Knowing you can't get personal, what would be the highest portfolio percentage you would think would be appropriate for each given the nature/stage of the lifecycle each is in?

GOOG NTR ATD LUG GAU AEM WPM BCE SHOP ISRG

Thanks for everything!

James

Q: Good Morning,

All things considered, would you rate SMCI a hold or sell today?

What do you think the likelihood is of it being de-listed from the Nasdaq? Would you wait to make a hold/sell decision until after next Tuesday's scheduled business update, or do you think there's not much that management can say to change the market's perspective on this stock?

Thanks,

Brad

Q: Regarding SCMI, how badly would their accounting have to be misstated before it was not attractive based on fundamental reasons? Looking at the current and forward P/E, it's relatively cheap for a good business in a great part of the market.

What if a company with a different name produced a quarterly report that showed SMCI's numbers in terms of growth and earnings but without any of the baggage and negative perception? What would 5i value this other entity at with current financials and for fun, what would 5i value it at if the numbers are revised to be 25% worse.

Thanks

Q: Hi Team,
I am a bit perplexed about why the last couple days NVDA has been trending down after earnings releases such as Meta, GOOG, Msft which all seem to show massive spending on AI. You would think this will translate into high demand for NVDA chips which hopefully will bold well for NVDA earnings. Any thoughts on the outlook here for NVDA earnings estimates? I assume the correct answer as usual will be to hold the stock into earnings. I am also surprised Meta and Msft are dropping after great earnings.

Thanks,
Shane.

Q: Hi 5i

Considering the auditor news, all selling is being acquired by someone who expects to make a gain (sometime in the future) as you often point out (generally speaking). Could you comment on the bravery/optimism of these buyers as these circumstances are different to day to day "normal" news/activity.
Just curious...
Mike

Q: In an answer to a question you quote 'do not buy if the auditor resigns'. But would YOU sell if there was a gain? a loss in a registered account?
Many thanks

Q: Your thoughts on SMCI and HPS-A after the news and drop today? SMCI seems like they have issues to deal with...would you intiate a new position in either at this point? Thanks in advance.

Q: Dear Peter et al:

Your answer to Jacques' question that included SMCI is rather outdated now, right?! The question probably made its way to yur in box today!
No one expected such a deep drop this morning!

BUT at least one of the BIG heads has paid the price. Not sure if there is some more heads will roll besides the chief accountant.

Is the worst behind SMCI? At 35% growth as your answer indicates, worth nibbling here? Or does your "cockroach theory" still hold?!