Shares of Super microcomputer (NASDAQ:SMCI)the once high-flying artificial intelligence (AI) server stock was on the move again today. After falling for several weeks on concerns that started with a short-seller attack and a delay in its 10-K filing, the stock has rebounded sharply since Nov. 15 when the company hired a new accountant and put in place a plan filed to stay. in accordance with the Nasdaq fair.
The stock is up 15.9% today, meaning it has doubled since November 15.
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There was no company-specific news on the stock today, but shares continued to rise as investors seemed to believe that risk in the stock had been significantly reduced since the filing to stay compliant and a new accountant was hired.
Moreover, the short-term momentum could continue to lift the stock price as traders do not want to miss the recovery.
The company still faces some hurdles in returning to full health, as it still hasn’t filed a 10-K or provided an expectation of when it will be ready. The 10-Q for the first fiscal quarter also comes late, showing that accounting problems are piling up as the company tries to correct the discrepancies that led to the delay in filings and the firing of its former accountant, Ernst & Young .
The rebound earlier last week, when the company said it had been granted an extension to file its Nasdaq filing and announced it had hired a new accountant, made sense, but the continued rise in the stock price appears to be pure momentum.
There is still little clarity on when the company will file its outstanding filings, and the special committee has not yet issued a report on corrective actions to straighten out its financial reporting, which the company expected to have completed by November 15.
At the moment, the stock still seems very risky. It is not suitable for long-term ownership until the outstanding accounting issues are resolved.
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