00:00SMCI, big news, of course, coming yesterday, was trading up in the morning when we were
00:06doing the show off of Micron's earnings.
00:08But then at 10.50 AM, around 10.45 more specifically, a headline hit from Wall Street Journal.
00:17The Justice Department probes server maker Supermicrocomputer, former employee accused
00:23AI server maker of accounting violations.
00:27The probe is at an early stage.
00:30This comes, of course, after a short report from Hindenburg a few weeks ago that accused
00:35them of some creative accounting, we'll say, and then they delayed the 10K, and then now
00:40you have the Justice Department coming in.
00:41So it does look like at the end of the day where there was smoke, there might be a fire.
00:46We don't know the exact details yet, but clearly SMCI has got some stuff going on and the stock
00:53got absolutely hammered down 55 bucks, 12.2% down another four bucks this morning, right
00:59at $400.
01:00Bounced where it needed to bounce, in my opinion, you got to the 382.
01:04You did undercut it at 373, but you quickly got back up above that headline.
01:09Algos are like, sell, sell, sell, sell, down 100 bucks in like 100 seconds.
01:17And then we bounced and stabilized a little bit here.
01:19So I think it's an overshoot, to be honest, I'm not saying I'm coming here buying SMCI
01:23today.
01:24There's a lot of things that we don't know.
01:26More information keeps coming, more headline risk here is there.
01:30But I think that 373 from yesterday is safe.
01:34Just my opinion.
01:35Boy, this is getting convoluted.
01:38This is getting convoluted because you don't know if this is just an acceleration of the
01:45other news that they have someone within the company coming out and testifying, or this
01:50is like a whole, you know, it's, it's keeps getting hit on this kind of news.
01:56So I, I, you know, it's the same headline, it's different investigation.
02:02I mean, we know this information.
02:05It's shocking that it goes down 100 points on this.
02:07I mean, you have all this stuff cooking here.
02:11It's kind of logical that the DOJ would get involved.
02:15I mean, don't you think?
02:16Uh huh.
02:17Yeah.
02:18Like it's kind of logical that the DOJ, so the algo sell off 100 points because they
02:21just see DOJ involved in the equals automatic sell.
02:24But I don't think it surprises anyone that the DOJ would get involved.
02:29So with everything that's been said in SMCI, in the media everywhere over the course of
02:34the last two months, uh, and since all this started, or six weeks since this has started,
02:41you think the DOJ isn't watching that they're not watching the media and everybody's talking
02:46about is SMCI cooking the books, you know, like, I honestly think this was to be expected.
02:52It's a huge sell off.
02:54I think obvious guy says, yeah, the DOJ was going to look into this.
02:58So we don't know anything has come of that DOJ finds a whole bunch of crooked stuff in
03:02there.
03:03And then Katie barred the door, the stocks, the books, stocks in trouble.
03:08But right now, all we know is there's investigations going on and we're trusting like in the, or
03:13if you're, if you're investing, if the case to invest, you're trusting that the I's are
03:17down and the T's are crossed.
03:18We've talked about this before as well.
03:20So I don't think, I think the a hundred points off was a little bit overdone yesterday.
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