The SailingDev’s Portfolio end of September 2024
Not much movement this month. I finally closed my $SMCI position. My portfolio underperformed the S&P500 this month, due to my disproportionate semi-conductor sector & “AI-plays” allocations most likely.
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End of September 2024 Portfolio
$SMCI
I kept waiting for that delayed 10-K and instead of releasing it - they had this press release instead, where they inform us they have 60 days to comply. This was the straw for me. If the issue were just some incorrectly revenue accounting or the like, they would have rushed to fix it and have the 10-K signed off and submitted. It still boggles the mind, but I guess it’s not their first rodeo. Too much of a gamble at this point and I decided to cut my losses (aprox 20%).
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I too have held SMCI much too long, but at this point there’s really not much more to lose. I decided to wait at least until they post 1Q25 quarterly report. Despite all the bad news (and there’s a ton of it), I don’t see anything that will directly impair their ability to ship product.
I don’t think any customers give a rip about their 10-K or the possible sales of controlled technology to a banned entity. Of curse, I could be wrong about that, but why would they care? Their customers want high end, top quality servers that meet their needs. That’s what SMCI delivers.
Oh well, we’ll see pretty soon. The quarterly report is guesstimated to come out at the end of this month.
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Q1 of 2025 for SMCI ends Oct 30, with a previously expected Nov 06 ER date. What happens if SMCI hasn’t submitted its 10-K by then? Can they actually report on Q1 when last year’s 10-K isn’t complete?
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Really not sure how to answer that question @Smorgasbord1. Can they file? Maybe not, I don’t know if the SEC has rules stating that quarterly can’t be filed while the previous annual is still pending.
But, even if no such rule is in place, will they file or just slide the report date which is unconfirmed at present? I would think that they would slide the report date in either case if the 10-K has not yet been filed. I mean will anyone accept the results if they still haven’t resolved their “financial controls” issues? I assume they’ve encountered some problems, otherwise I think they would have already filed. We will find out pretty soon, I think. Nevertheless, my plan is to continue to hold my shares until they actually file the quarterly.
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