SMCI golden age and beautiful chart.
After hours Friday SMCI jumped almost 9 percent! Makes perfect sense that investors are flooding back into this stock! It has been so beaten down over the last six months by bad press and fears of fraud. Those fears have been quelled by a new CFO and auditing team.
We just saw in the last month of 72% rally and there is still plenty of room to run on Monday it will open up around $48, the last critical level we saw was $49.
Also, it looks like a somewhat sloppy cup and handle pattern is forming. My half baked technical analysis is. We will see a minor pull back around $50 to finish the pattern, then it will launch back up to the next critical level around $60 a share.
Fundamentally speaking, they have been showing plenty of growth and demand for their products which mainly consists of hardware to House semiconductors, especially their trademark marked water cooled rack, which directly addresses a huge issue that centers are facing as computing power gets to Skynet levels. Their price to earnings ratio is a modest 21.9, the earnings per share is a humble 2, the ps ratio is 1.5 which is the lowest among its competitors. In fact all of its metrics or lowest amongst its competitors except for the EPS for AMD, which is 1.1.
There will be much to see within the next quarterly earnings report and how they managed to address their auditing issues and reporting issues. But I think this company still has room to run and definitely has legs.
I have 200 shares with plans to buy much more. I was going to buy on the next red day, expecting it to be Monday, but I digress. Next pull back I’m buying calls with a strike price of about $49-$55 exp in March. Even considering a YOLO. God Speed to the investors and traders.