SuperMicro Computer Accused of Massive Fraud

[@SargisFarter]

I don't know why we rarely get to create awareness about bitcoin and crypto SCAMS while promoting cryptocurrencies

Some creators do but most people don't LISTEN! Fortunately, there's a possibility of tracing and tracking down your funds if you have sufficient information to back your claim I've been able to recover for the most part funds that I've lost to these bad actors thanks to Rob

RobertoBiscardo

he is active on the TE IE GRAM

[@ohyeahwhat5387]

I worked for a company that built payment processing gear in the 80's . They shipped finished ( unsold ) machines to a 3rd party and booked the revenue to make their quarterly gains. I guess in the 80's , companies could get away with this. Or they just were never caught.

[@Robert-sp2ms]

You worked for them 40 years ago and can’t name the company?

[@vinniepeterss]

😮

[@BlazingShackles]

Very common practice in the 70's 80's and 90's. And still happening today. Theres really no reason to even ship anything, could just be empty boxes. But the trick is designed to fool their own employees so that the picture looks complete from the inside.

[@HabitualLine-Stepper]

@Robert-sp2ms Snitches get stitches...

[@santiagoaparicio619]

Accounting scandals for public companies became much more serious after Enron

[@JoeRogansGutBiome]

No one goes to prison for fraud or wire fraud in the corporate world. They just pay a fine, and get out of jail.

[@wmpx34]

Laws for thee, not for me

[@tatata1543]

Tell that to the guys at the top of Enron and Worldcom.

[@BlazingShackles]

@@tatata1543 Very rare son. Pay attention to the broader picture. 99% of these cases never make the news and no one serves any time.

[@tatata1543]

@@BlazingShackles The OP said “no one” , that’s not true is it? Also how about FTX and Bernie Madoff? Would you like to revise that percentage down? 😂

[@davidlazerz8564]

@@tatata1543 You know what he meant. But sure, be pedantic and lick the toes of the billionaires that are capturing global wealth from the people who make that wealth in the first place.

[@YouCanHasAccount]

Accounting shenanigans aside, the products they sell are still highly customizable, leading edge and good value for money compared to the competitors.

[@austinh1028]

SuperMicro does a lot of pre-built servers, basically a lightweight Dell or HP server that isn't using any proprietary parts. Dell and HP both have better support, but the SM pricing is hard to beat for a basic server with a Light-Out interface. SM 'white boxes' are surprisingly reliable for what they are though

[@mjregan88]

yup

[@foobarf8766]

Got one here with over 175k hours (20 years) in prod, no signs of failure

[@cryptocsguy9282]

@@foobarf8766 20 years on 1 server is a long time but if it still suits your needs why not

[@MatthewMS.]

When I heard Super Micro delayed their 10k (when news broke) I thought when there is smoke … may be a fire 🔥. I don’t think I’ve heard of a delayed 10k from such a large company.

[@LegolasD]

They had fake 10-k for years before being removed from the stock exchange. Google it

[@lllcool2002]

Apple delayed 10K before.

[@MatthewMS.]

@@lllcool2002 Tim Cook (the books)? 🥁

[@lllcool2002]

@@MatthewMS. He probably did, it is in his name.

[@lawjef]

You are trolling, right? Many, many, many larger companies have delayed 10ks. You may want to ask friends and family about how to search the internet

[@Jeez001]

When billionaire (Icahn) commits billion dollar fraud they get 500k fine and pat on the back. Even someone steals few hundred dollars worth of item they get 7 years in prison 😂

[@GeneticReconstruction]

The tribe only looks out for itself

[@xiaoka]

And Carl Icahn’s old buddy tells you it’s the Haitian migrants (legal migrants) that are the biggest threat to you. 😅

[@mx338]

Supermicro does design and manufacture its own components, mostly motherboards, network interface cards, and more, which they also sell standalone to other system integrators.

[@foobarf8766]

Yes that was in the video but those are not electronic components. They do not make passive electronic components like resistors or semis.

[@momchilandonov]

@@foobarf8766 No it wasn't. At around 2:10 the video narrator says that they don't make their own components.

[@davidc1878]

3:44 An accounting firm that would NOT sign-off on financial statements due to financial irregularities? Wow, you don't hear about that very often.

[@christopherg2347]

That happens all the time. If they sign off on it, they are _legally liable_ for inconsistencies. Their reputation and thus future contracts are worth more then the paycheck from you.

[@davianoinglesias5030]

It must have been really bad

[@maxaffe3195]

@@christopherg2347 yeah but for this to happen it has to be really bad

[@andreyserov4636]

Supermicro is far not limited by AI solutions. My personal experience (my job is related to automotive industry) is that in the last several years perceptually 90% of IT solutions in automotive industry comes on Supermicro hardware. Whereas HP and Dell disappeared from this field.

[@Supernumerary]

I have used my SuperMicro motherboard equipped XI Workstation daily for 15 years! It is used for Solidworks, Matlab , Altium Designer and Vivado/Vitis. Purchased in 2009, it's a quad core Xeon clocked at 3.3Ghz. It continues to run extremely well. This motherboard has all sorts of wonderful features. Such as hardware support for RAID 5, which I am using. When I finally upgrade, I will most definitely look to SuperMicro and XI.

[@cryptocsguy9282]

@Supernumerary using supermicro motehrboards with adanced PC parts to help you develop chips is cool , i'm trying to learn Questa sim on a laptop 💩 i3 HP laptop from 2015 lol

[@andrewdubose9968]

Accountant here: It’s hidden in plain sight if you read the footnotes

[@mrtodddelaroderie]

No way! Wasn't this company's stock up to 1k earlier now it's near 400. Hmm, it's like the insiders pumped and dumped.

[@PonziZombieKiller]

Banksters Paradise

[@Tie509]

Not just insiders. All traders of the stock.

[@PonziZombieKiller]

@Tie509 ez money squeezing shorts with unlimited capital and and inside market data. All too obvious for Fraud Corruption and Collusion. Now Utopia is melting...

[@Huhwhat9237]

Lmao did you need listen to the video

[@mrjjman2010]

The Elon special 😂

[@BladeMasterz916]

Im so old. I use to pickup parts at Super Micro back in 94 to build PCs

[@skyak4493]

There is just too much potential for fraud. I am not making a judgement of actual guilt, but there is no such thing as a high quality company with low quality accounting and governance.

[@Jonteponte71]

They also don't seem motivated enough to actually do anything about it. Which is not a good sign.

[@TheDexsword]

Ummm sadly thats almost 90% of companiea right now no? Creative accounting which I learnt is just legal and illegal one sadly lol

[@pitech4446]

ask people who worked for this company in san jose and they will tell you the people working there are some of the most laziest and stupidest, unmotivated individual. The company run on a 30 years old processes, just look at their glassdoor reviews

[@sutats]

Wirecard

[@jbinmd]

These aren't uncommon accounting gimmicks but should be punished.

[@snooganslestat2030]

Deliberately sending unfinished products to customers probably isn't the way to get good reviews. 😂

[@creshiell]

They think they're a steam game 😭😭

[@cryptocsguy9282]

@@creshiell Early access servers :P

[@andreyserov4636]

Feels like Hindenberg finally made a poopoo. Unless it's an elaborated plan to actually pump the shares:) Because if that's all one can possibly dig out on them, the company looks exceptionally strong.

[@OhNiceMatt]

The only thing they are guilty of is PULLING FORWARD sales and revenue, which inflated their stock price. How much punishment is that worth?

[@SheilaCooperHogan]

From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.

[@Olsen942]

Please where and how did you earn that much.

[@California_school_girl]

Please how do I go about it I'm still a newbie on investment trading and how can I make profits.

[@Michaelheintz657]

I would really love to know how much work you did put in to get to this stage.

[@SheilaCooperHogan]

All thanks to LEO CLIFFORD

[@SheilaCooperHogan]

**Leo Clifford is a licensed broker and a FINRA AGENT here in the States.*

[@tonycrabtree3416]

You just described why Sarbanes-Oxley came into existence.

[@MrKentaroMotoPI]

I bought a Supermicro Pentium Pro motherboard in 1996. It's had Windows 3.11, 95, NT 4, and 2000. Memory started at 32MB, now at 329MB. Performance increased 70% with PII Xeon Overdrive. Made in USA and still running as a daya server.

[@codycast]

5:00 I worked for a company that did this and it absolutely drove me insane. I was in sales and I didn’t care if it fell on the last day of 1/4 or the first day of the next. A sale is a sale. They’re so concerned about draggingan order in early but who cares? All are doing is then stealing from the next quarter so you’re gonna have to pull a bunch of shenanigans to make that quarters numbers. If they would just allow the orders to happen when they happen then the total number of orders in the given year would still be the same so it’s all just a big waste of time.

[@codycast]

By the way, the company I used to work for was a computer company and we used to buy from supermicro. This was literally like 20 years ago. We were a big customer of theirs. We would buy their chassis to assemble our servers to sell to our clients. But then super micro, got into the server selling business and basically tried to go to all of our customers to sell them the fully built computer directly. So obviously, we stopped buying their machines when they became competitors. Anyway, they always struck me as a super slimy company so I’m actually a bit disappointed to see their stock run up, but I’m glad it’s pulling back down. And the fact that they’ve gotten in trouble with various regulators doesn’t surprise me.

[@davidlazerz8564]

Nothing matters more than helping executives scam their bonuses from the shareholders by manipulating data.

[@dontplayformenero]

Wow great work mate. Just found this channel and really appreciated that dive into SMCI. I found the Hindenburg report to be damning, very unimpressed with Super Micro's management... Obvious improprieties

[@rodriguezchen]

Charles came from a small farming town in Taiwan and he could have stayed and follow his dad’s footsteps and instead he went on to study on his own in the states and eventually started this company, Ppl need to realize how hard it is to do that! Charles Liang - born in Taiwan - Supermicro CEO Jenson Huang - born in Taiwan - Nvidia CEO Lisa Su - born in Taiwan - AMD CEO

[@Ziggletooth]

I freaked out when I saw this thumbnail until I realized, oh right I don't have any SMCI stock.

[@cryptocsguy9282]

@Ziggletooth same lmao , being a tech nerd and investor made me react like that 🤣

[@LuckyDuckie115]

Im more convinced supermicro should sue hinderburg base on their Russia comment

[@aezakmi3766]

Don't think they want to invite every single 3 letter investigation agency to the party allied or otherwise.

[@projectsspecial9224]

​@aezakmi3766 if you have nothing to hide, why not? Or is it just economics or nuisance fee?

[@callmebigpapa]

Love my Supermicro servers. Hope they iron this out and move forward.

[@figarofigaro3429]

Sounds like a nothing burger

[@lawron2]

They still make great servers and equipment. Let's hope they turn things around

[@PXAbstraction]

Honestly, the accusations in this Hindenburg report sound pretty flimsy based on how you're describing it. Their reports usually have much more concrete evidence than this one seems to.

[@seankhrazmi2712]

So why would SMCI delay their 10K filing after that report came out? If anything, they should have released it sooner than later to erase any doubts

[@Boredblacksheep]

It's because they are mostly a real company and done some fraud. The earth shattering stuff is when the company is being accused of being a complete fraud. So Hindenburg expects the stock to go lower, but not to 0.

[@ray-mc-l]

@@seankhrazmi2712 I dunno, maybe it's a better idea to check the numbers and make sure they're right?

[@samsonsoturian6013]

Dozens of petty frauds. The fines could totally put them out of business, but not in prison. Not every scammer takes insane risks

[@ashishpatel350]

LMFAO... Their reports are speculation...

[@meatbyproducts]

Hindenburg loves to fan the flames of any little ember And try to bring down companies because that's how they make their money. I think everyone needs to stop giving Hindenburg attention.

[@glenglendinning6204]

@meatbyproducts They ( Hindenburg) should be investigated for stock market/price manipulation.

[@meatbyproducts]

@glenglendinning6204 that is what they are doing, but through the cover of journalism.

[@davianoinglesias5030]

Their report on SuperMicro looks very scanty, two more similar reports and Hindenburg's reputation will sink

[@homeandbackyard9599]

Time will tell. Remember Hindenburg is a short seller, they got what they wanted for now.

[@momchilandonov]

As an IT technician assembling computers for ~6 years if all they do is just assemble and NOT producing anything this is a MAJOR RED FLAG to have it valued as a 26 billion $ company!

[@GuadalupeMartinezb]

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[@VincentLussier]

Susan Duke program is widely available online..

[@MillerSecurity]

Started with 5,000$ and Withdrew profits 89,000$

[@MillerSecurity]

Susan gave me the autonomy I need to learn at my own pace and ask questions when I need to she's so accommodating.

[@snooganslestat2030]

Related companies paying each other above market value...sounds familiar.

[@ray-mc-l]

thin soup. the accusation of breaking sanctions is so flimsy that hindenburg shouldn't have mentioned it.

[@yongchen8204]

supermicro used to assemble personal pc back in the 90s and early 2000. even then its reputation was bad. i thought it was out of bussiness until now.

[@blubb7711]

The Company I work at was and in part still is, a Supermicro customer. The Company is a absolute joke when it comes to communication and product support.

[@Bryghtpath]

This reminds me of the Enron scandal in 2001. Enron was a massive company that crumbled under allegations of fraud, and short-sellers played a key role in bringing it to light.

[@foobarf8766]

That was artificial scarcity in energy spot price market, I don't remember short sellers being the heroes there, Enron caused an electricity outage in California which prompted an investigation.

[@CharlesHermite-l2x]

Most of hyperscale cloud providers would rather order directly from Nvidia instead of Dell/HPE who offers refinancing service to the startup companies. So people should be cautious about everything what you saw/heard without justification.

[@vinniepeterss]

have been binge watching your videos for the past week man, and i must say, i'm HOOKED!

[@ncdave4life]

When I think of servers I think of four companies, not three: Dell, HP, SuperMicro & Lenovo.

[@Hellya38]

that's so nice the SEC let them keep listed frauds after frauds, that's American dream

[@cinemaipswich4636]

Apart from this revelation, I would rather buy their motherboards, as compared to the gaming market of ASUS, Gibabyte, MSI, AsRock etc. Industrial strength stuff.

[@bonwatcher]

When your company stock should skyrocket in value just based on actual revenue and demand, yet the execs still think they need to continue to commit fraud to boost the numbers, it's concerning to say the least.

[@KASERQARNashaytaan]

I'm going to give it a wild guess that shipping orders to customers early & desperately trying to hit or surpass quarterly sales figures is probably related to the budget, which in turn is used as a benchmark by analysts etc to evaluate performance, which will effect sentiment & share price, which is linked to bonuses, amongst other things... The IT industry has been rampant with dodgy dealings for almost three decades now

[@churblefurbles]

endlessly sanctioning everyone is ridiculous.

[@vancejochim8537]

Grat report! As a retire😂d Fortune 500 internal audit manager, this is hilarious. The practice of shipping "sold" products to a warehouse is called stuffing the channel. I found one regional sales manager doing that with software products to increase sales to get a larger commission. Asian firms have no ethics in my opinion and you can't trust them, This is a great study in financial manipulation.

[@Carsonmaki]

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[@hellofranky99]

Wow, SMCI is trading at 1/3 of its all time high less 6 months ago. That is scary.

[@surqmamal8382]

Won’t be surprised if Hindenburg was paid by smci competitors to pull it down . We will never know but sure this gives an opportunity for Dell to do better !

[@JamesTenniswood]

They make really nice hardware, but that leadership is sketchy, to say the least...

[@JosephRiches]

Sounds like its insanely costly to short the AI bubble (assuming Hindenburg have short positions). Dodgy accounting aside doesnt sound like there is too much substance in the report.

[@rodolpheby6306]

This is for me one of the biggest weaknesses of passive indexing. This company skyrocketed (like TSLA) until joining S&P 500 in March 2024 and was down 50% even before Short selling report was released…

[@JoeRogansGutBiome]

So many corporations are doing this scheme. Its not illegal its legal

[@LydellAaron]

One of my favorite tech companies. Who else builds motherboards with such large RAM amounts? Very high performance motherboards!

[@davianoinglesias5030]

Investing in a company that sells shovels in a gold rush is wise but knowing when the gold rush is over is even wiser

[@JohnWilliams-gy5yc]

SuperMicro product brand is cool. Honestly why would they try to fraud investors like that? Why do they have to do that? It doesn't make any sense. I guess there must be some big shareholders tried to influence the boardroom.

[@JimBranch-n8s]

This is the company that is selling AI servers to the chicoms,skirting US exports to China at favorable lease rates.

[@matthiashehn4410]

As you mentioned Hindenburg 'research' is a short seller, but thus putting out allegations benefits them financially, thus I would not trust any of their publications

[@nufosmatic]

1:58 - SuperMicro also builds custom computers for other companies like Facebook.

[@tuomasholo]

Why would they be responsible if a third party resold to Russia?

[@danielj.rodriguez8621]

EUD and OFAC.

[@joelmiradora4256]

.. and still a lot of employees working 5 days a week like crazy.. still bullish in super micro. Doing DCA 😊

[@ThrowBackZone]

SuperMicro's rise is insane! 🚀 But can they maintain it?

[@georgiebestmanutd4746]

How the mighty have fallen; from $1000, down 67% to $350 ish. Undone by Heisenberg

[@zumbatan550]

A class action law suit must be on the horizon for those who lost on their investment.

[@peterbland7227]

I noticed in your images a Cramer interview. If he is involved, I tend to expect a scam. I don’t think Cramer is corrupt, but he sure seems to attract scammers. Does he practice Due Diligence?

[@samsonsoturian6013]

Obviously stock promoters want to be interviewed on his show, and he interviews/reviews whatever the he thinks the viewers want. None of these are necessarily scams, but a lot of them are.

[@joeslowmama2048]

@ 5:33 wow if that doesn’t sound like so many corporations now days

[@foobarf8766]

I have a Supermicro 1U here that's been running >20 years in prod, no signs of failure. The only other machines I know to last like that are by IBM. Supermicro punch above their weight so this is surprising to see.

[@mrrolandlawrence]

Amazing news. Love how the main stock markets are above all this rubbish.

[@ginger_toggaf]

Saying Supermicro manufactures some products in US is like saying Apple manufactures some iPhones in US after they put your sim in at the store.

[@scottkirby5016]

One thing about that Hindenburg report. It was not making much in the way of direct allegations of wrongdoing but did claim that weak corperate governance, opaque pseudo-related party transactions, and the end of the first mover advantage are all high risk factors that the price of the stock did not take into account at the time of publishing. So a more normal bearish report from a short seller...at that is the norm...the accusations that the business is a massive fraud somehow (be it Nigerian telecom/farming, US Hydrogen Trucks, UAE Healthcare, of Chinese Forests) are the minority. In this way it is more like the Adani report...a real business that is overvalued and possibly manipulated but still a real business.

[@bluestarcesium]

There are tax consequences involving inventory and capital goods, and companies will try to expense through deprecation recent investments. This will slow the acquisition of AI products at the same time AI reaches closer to maturity, all the slowdown in sales will occur at the same time. The AI stocks will over correct and this should be a buying opportunity.

[@joannemeeks745]

This was a highly informative video. Thanks.

[@samsonsoturian6013]

This is why once you identify a many you should wash your hands of it. It doesn't matter how good the tech or the company is, you will still lose

Sounds like there may be a healthy second hand market for high end servers in the not too distant future.

[@jessietomich8043]

It sounds like they have a bright future in government contracting and construction. Both those fields love to cook the books and lie about project completion.

[@solarwind907]

Thank you for this information, I appreciate it!

[@imjyun]

how can they survive for this long is a miracle

[@LANless]

A shame they decided to play stupid games; I've had good experiences with their motherboards. Hope they can survive the AI bubble popping.

[@paulcarter7445]

Sounds like a typical short position paper, accentuating the negative. I suspect the AI boom has got more legs, it's providing increasingly real and extraordinary benefits - it's not mere hype.

[@andreyserov4636]

There is no shortage of the new Iphones in Russia to that matter. Can Apple be accused of violating anti-Russian sanctions? Many western brands are openly engaged in so called "brand obfuscation campains". This is not some secret knowledge or guess, that's what they openly say in the media. There is a lot of brands in Russia now like "R-bank" (google will tell you how those were called before sanctions and still called outside of Russia:)). An "Apple Store" for example is called "ReStore" in Russia now, but except for the sign nothing is changed. So unless you see something like "S-Micro" or "S-Computer" it is safe to assume Supermicro itself is not involved.

[@mualan4683]

Their employees still make $18/hr.

[@pauls5745]

I mean they fudged the books to look good to investors, while still making solid products and leading in their industry. Probably desperate to keep the business running smoothly. 10 million fine sounds ok. I don't think the CEO's head should roll...

[@mattclark6482]

Certainly sounds fishy, but NVDA has some similarly questionable revenue recognition but no one cares.

[@mjregan88]

sounds a lot of no big deal...

[@nufosmatic]

1:28 - THE PATENTED JIM KRAMER KISS OF DEATH!

[@jonathancrawley8916]

Excellent and informative on the subject.

[@gapho5198]

1:30, and there's the kiss of death right there.

[@Diamond_Hanz]

money laundering for Nvidia

[@tonyrex99]

And here I thought they committed micro fraud

[@alalfred3474]

After viewing your episode, I am not sure the allegations are serious at all. I still remember GE’s Jack Welch manipulated revenue recognition to make sure its earnings were always growing at double digits.

[@jarvy5703]

The audio changed significantly mid video. It was jarring lol

[@IM_Arcades]

I don't completely trust Hindenberg either. Mainly because they are a short seller themselves and have something to gain too.

[@michaellin6155]

Fraud. This company is overhyped. They are exactly like other AI server manufacturing companies Quanta, Gigabyte, Asus, Its is already a miracle that their stock price is even above 400. I don't see why any value was considered at all to begin with.

[@tccoggs]

100% agree. I have been a customer of Supermicro since the late 90s, they have a solid OEM business, etc. but they are not a huge IP holder like NVIDIA. They always played the value segment against HP, Dell, IBM, etc. When the stock shot up, I figured a bump was expected giving the AI market, but then it just kept going. Didn't make any sense.

[@editorjohn8803]

It crashed from $1100 to $385 in a few weeks! I’m so glad I took a break from trading for summer trips. Otherwise, I might have bought some

[@andrewjgrimm]

What is Hindenburg’s track record like?

[@champfisk5613]

The numbers guys importance is always revealed

[@timothyharshaw2347]

I have zero financial interest in any way shape or form; that being said - i feel like this "Report" is more of a slanderous and dubious hit piece devoid of substance, proof or any clear fact. Instead it's all just claims and spurious accusations.

[@StampitisDP]

Mom W$M just uploaded!!!🤩🤩🤩🍿🍿🍿

[@joeschmuccatelli2167]

inherently crooked