Folks reading this: Please tread with caution, don't take stock advice from HN. Especially for OTC stock. While the story may be false, it's very likely they may never recover.
- Their product is fungible, folks on the front line buying motherboards may just chose to avoid SuperMicro to avoid awkward conversations with their boss.
- They were having financial issues before, had some shady accounting and got delisted from Nasdaq. They're now traded over the counter.
- Last quarter their net earnings were $17M; that'll most likely be wiped and they'll go in the red.
- They've got $120M in the bank and $700M in quarterly operating expenses.
- The market can stay irrational longer than you can stay liquid.
Many companies are now likely auditing their systems for mystery chips. Many companies have learned of the hacked firmware distributed to Apple. Many in-progress orders may have been halted.
@awake: Let's assume that the story is false and then ask yourself some questions:
What is the story about?; Why was it released?; Is the timing significant?; Who are and will continue to be SM's customers? ...prospects for future customers? ...prospects for current and future earnings?
If you like the answers to those questions (and those are just the ones I could think of in 30 secs), you know what to do.
Best of luck to you, but be careful, you may be left holding the bag of a soon-to-be bankrupt company. See my comment above, and take a look at their financials.
A case of a malicious driver update served by Supermicro has already been publicly confirmed by at least two former customers. Even if the hardware hack allegation is conclusively proven false, they will have a tough time acquiring and keeping customers.
