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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
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Super Micro Computer Inc. (SMCI)
Q: Your thoughts on SMCI and HPS-A after the news and drop today? SMCI seems like they have issues to deal with...would you intiate a new position in either at this point? Thanks in advance.
5i Research Answer:
On SMCI there are several rules we watch in the market, but a key one is 'do not buy if the auditor resigns'. Here we have E&Y basically saying they cannot trust the company. We are not going to argue with them and would not want to step in here right now. We have comments posted on HPS.A. We would be OK nibbling into the decline.