Is Super Micro Computer a Millionaire-Maker Stock?
When I think about stocks with millionaire-maker potential, I typically envision fast-growing companies with small valuations -- two characteristics Super Micro Computer (NASDAQ: SMCI) has in spades. However, the data center hardware maker is cheap for a reason. Let's explore whether or not the company can overcome its near-term accounting challenges to unlock explosive shareholder value.
Supermicro's problem started on Aug. 7, when short-seller organization Hindenburg Research released a scathing report accusing it of accounting manipulation, self-dealing, and sanctions evasions related to the Russian invasion of Ukraine. Later, the company delayed releasing its annual report, putting it in danger of delisting from the Nasdaq Stock Market.
The situation worsened when Supermicro's then-auditor, Ernst Young, resigned on Oct. 30, citing months of disagreements with management and an unwillingness to be associated with its financial statements. All in all, these developments wreaked havoc on the stock, sending shares down 76% year to date from their all-time high of $119 reached in March. However, the company already looks set to overcome some of these challenges.
Source Fool.com
