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What Allegations Did the Hindenburg Research Short Report Make About Super Micro?

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by (120 points)
In what presumably began as an even-tempered Goliath, accusations began flying when the firm carried out a research study and published a short report on Super Micro Computer. The main accusations include fraud structured around the company's accountancy books, generating artificial demand through sales to households, and having ties to China which could hurt the company.

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by (340 points)
The allegations included in the Hindenburg Research short report on Super Micro Computer ID decries the charge of creation of a cross-border chain of sanctions evasions front companies, provision of parts to the biggest Russian supercomputer factory located in a confidential scientific center and some undisclosed related party transactions that may confuse such metrics as gross margin.
by (340 points)
No links, no sponsors. Just shocking allegations. What do you think about Hindenburg's short report on SMCI?
by (100 points)
Nice work Alex. It’s pretty dirty that companies can open a short position and then just publicly slander the company in the hopes it crashes.
by (100 points)
I've seen these Hindenberg hit jobs before, and the problem is that they can, by accident, uncover just enough malfeasance to harm a stock.  Also, even if the company is completely innocent, it is likely that their share price will fall.  Add that to macroeconomic issues, and it could fall a lot.  This should be illegal.
by (100 points)
The problem is that Hindenburg usually takes short positions on the stocks it puts out investigative reports on. Clearly not passing the smell test.  Last year, Hindenburg took up a short position on the Adani group, then put out a bombshell report rehashing a lot of publicly available information, causing immense panic and causing the Adani group to crash by about 50%. Hindenburg made money doing all this. The Adani group has since recovered fully -- clearly discrediting the Hindenburg effort.
by (100 points)
Hindenburg should be investigated by the SEC for stock manipulation. I bought some SMCI just after this hit piece report.
by (100 points)
Stock manipulation, Hindenburg should be held accountable….
by (100 points)
Always  view  reports  from short investors  with great  suspicion. These  investors  have a  selfish  financial interest  in damaging  the reputation of  the  target  company.
by (100 points)
Very nice synopsis, Alex. Hindenburg certainly has a vested interest in trashing SMCI shares & has a somewhat mixed track record at exposing graft & misconduct. Nathan Anderson, Hindenberg’s founder & CEO, is apparently sincere, but often enough, simply wrong.
by (100 points)
Wow. Was always skeptical about this report (but not all Hindenburg reports). Looked like BS to me, but didn't have the knowledge to know for sure. You really have one of the best semi/AI Channels out there. I owned SMCI for just a few weeks before the report came out. Comfortable enough to jump back in... soonish.
by (100 points)
Hidenburg is a short seller. Pretty much a tabloid in for a quick buck. Hope the SEC catch this the way they did it with Citadel.
by (100 points)
Hindenburg publishes these reports this time of year and then everyone piles in to short.  They will be back next year too.  SMCI will still have most of these relationships and the dirty laundry will still bring the stock down deserving or not.  It will never be over.  I guess if you buy after the big short and sell before the next attack, you might make some money?  Or join in and short?  Hindenburg Reports is a nasty business.
by (100 points)
This could BE a rabbet hole i don`t want to start, Thank you for doing this UR the GOAT
by (100 points)
Great report and research.  "gamesmanship" is going on in all companies and to think otherwise is foolish.  The issue at hand is the idea of shorting.  I believe as a longterm investor, shorting should never be allowed.  Never.  It takes advantage of the biggest emotional aspect of investing: fear.  When a stock is driven down due to shorting, it also impacts the company itself as it hinders its ability to get more capital.  I have become very disheartened by certain aspects of stock investing and this one is the number one issue I hate about investing.
by (100 points)
SMCI should sue Hindenburg for defamation. SMCI have the $ to sue and scare Hindenburg. Whether SMCI win or lose depends on the facts somewhere in the middle.
by (100 points)
Thank you so much for this deep dive into SMCI, you did an incredible job explaining all the relationship and a caution that Hindenberg  report left out the rhyme and reasons.  I am so disappointed in  SMCI  although my position is very small.  And yes on a DELL report please.
by (100 points)
disagree. as a smci shareholder I support the company.
by (100 points)
sounds like a monopoly to me. They couldn't get more information to validate this report!? Fortunately, l have Dell also.
by (100 points)
there was also a list of 6 big companies including AWS X and Digital Ocean who left SMCI because of tech issues...
by (100 points)
When Hindenburg report came out, SMCI had already declined from $1000 odd to $500. After report came out, plunged from $500 to $390
by (100 points)
Why do you believe that the report was conveniently filed one day before SMCI's announcement of delaying the 10k, and not the other way around. which is that SMCI announced the delay after seeing the short report?
by (100 points)
This is "The Big Short" in my opinion. Been trading 15 years or so and this right here smells like an SEC horror movie. American Greed is already writing the script.
by (100 points)
This assessment is helpful. You should do it for all notable short reports.
by (100 points)
How come that's not illegal? So, an investment firm can short a company and then come out with a hit piece to bring the stock down and profit?  That's insane to me
by (100 points)
I wish you would have covered the timing of the short report and the company delay in releasing its Financials. The second was just as concerning
by (100 points)
Yes for Dell , please. Thanks for sharing this analysis for SMCI...Wondering if you have any POV on whether previous reports from Hinderberg have been false allegations as well or not? They posted couple of reports against Indian company and SEBI head and those accusers have also refuted all the claims from Hinderberg.....
by (100 points)
There are many other companies that are profiting from AI that don’t have all of the mess that SMCI has. I owned it. I did well with SMCI and I sold it not when the Hindenburg report came out but when they delayed their filings. Yes…I would appreciate a deep dive into DELL.
by (100 points)
This sounds like noise to me, I just started investing in SMCI stock.  Sounds like someone at Hindenburg is trying to throw shade on SMCI, CCP maybe?
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