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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sean Collett who wrote (75173)	2/21/2024 9:43:46 PM
From: Sisyphus	2 Recommendations Recommended By E_K_S Sean Collett Read Replies (1) \| Respond to of 78778

Hi Sean, No. I got stopped out at 848 and change on 2/16. Once it hit a grand a share, it felt too much like a gift horse so I put on a stop sell. I did the math and realized that if I took the proceeds and my portfolio remained flat for the remainder of the year, I'd be more than happy with the IRR. Knew about the offering when it happened and determined that I'd probably do the same. Yes, saw the convertible news today. Have mixed "feelings" about this company/security, as I generally favor growing world-class companies with a superior "franchise value." Not sure if SMCI meets these criteria. Over the last 11 quarters, it generated a cumulative operating profit of a negative $37mm: Thus I'm hesitant to reenter for a long-term position and I'm not a trader, but I do find its near-term prospects and market position extraordinarily compelling. Sisyphus

To: Sean Collett who wrote (75173)	2/22/2024 5:13:40 AM
From: Harshu Vyas	1 Recommendation Recommended By Sean Collett Read Replies (3) \| Respond to of 78778

Smart move. Gotta respect it. Issue convertibles at crazy valuations. Those capped calls will probably be a waste but, hey, without them the market might just catch on to exactly what they're implying. Wonder why they didn't do a "dotcom" and just issue more equity? Would that be too obvious? If there's momentum behind the stock, seems logical (to me). That'd always be the better move, imo. BYND at the high flyers of 2021 should have done that, too (instead of issuing convertibles). Now with the fear of more dilution, zero hype and more bad news, no investors "want in," leaving their businesses in the dumps. (Also worth noting in 2021 when hyped companies issued such convertibles, it wasn't long before their valuations came crumbling back down to reality.) Either way, SMCI is up 15% in the pre-market. I also wonder did management deliberately wait for NVDA's results to announce this and hope NVDA's news outweighed their news? Or is this market plain foolish? I suspect the former. Who really thought that NVDA wouldn't blow expectations out of the water?