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In a former life I used to say that chips are for dips, and that was born out of a general disdain for the semiconductor sector. When I was a research analyst I learned their chip companies would sell product until the next cycle is ready but anything leftover was sold at severe discounts and then usually booked as 100% gross margin sale. I have a fundamental disagreement with that sort of accounting practice and it turned me sour on the entire industry for many years.
A lot has changed since then and now the whole economy seems to be based on one technology company. Granted that this company is the linchpin of the next technology revolution that is AI, the old slogan still rings in my head. Nvidia (NVDA - Free Report) Is of course the company I'm talking about and they just reported earnings last night after the close. The report was a good one but was met with selling early on.
Before the print we had the curious case of Super Micro Computer (SMCI - Free Report) which saw a short report come out Monday morning. The report accused the company of having aggressive accounting practices and recognizing revenue that hadn't yet been completed or shipped. The next day the company noted that they were going to delay their 10K annual report and that more or less confirmed the short report. SMCI Dropped more than $100 per share yesterday and tanked more than 25%.
Nova (NVMI) is a Zacks Rank #1 (Strong Buy) and we take a deep look at this stock including the earnings history, earnings estimate revisions and valuation.
Finally, we take a quick look at Technology Innovators. This is a service run by Andrew Rocco over the last year or so and he has done a great job selecting interesting technology stocks.
This week, Andrew correctly heeded the warning of the short report and sold his position in SMCI before the big 25% drawdown.
Not only does Andrew provide you with new and exciting stock picks, almost more importantly, he tells you when to sell as well. Reading the tea leaves of the market is hard to due and having a professional on your side like Andrew can make all the difference. Be sure to check out Technology Innovators!
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Brian's Big Idea: Chips Are For Dips
In a former life I used to say that chips are for dips, and that was born out of a general disdain for the semiconductor sector. When I was a research analyst I learned their chip companies would sell product until the next cycle is ready but anything leftover was sold at severe discounts and then usually booked as 100% gross margin sale. I have a fundamental disagreement with that sort of accounting practice and it turned me sour on the entire industry for many years.
A lot has changed since then and now the whole economy seems to be based on one technology company. Granted that this company is the linchpin of the next technology revolution that is AI, the old slogan still rings in my head. Nvidia (NVDA - Free Report) Is of course the company I'm talking about and they just reported earnings last night after the close. The report was a good one but was met with selling early on.
Before the print we had the curious case of Super Micro Computer (SMCI - Free Report) which saw a short report come out Monday morning. The report accused the company of having aggressive accounting practices and recognizing revenue that hadn't yet been completed or shipped. The next day the company noted that they were going to delay their 10K annual report and that more or less confirmed the short report. SMCI Dropped more than $100 per share yesterday and tanked more than 25%.
Nova (NVMI) is a Zacks Rank #1 (Strong Buy) and we take a deep look at this stock including the earnings history, earnings estimate revisions and valuation.
Finally, we take a quick look at Technology Innovators. This is a service run by Andrew Rocco over the last year or so and he has done a great job selecting interesting technology stocks.
This week, Andrew correctly heeded the warning of the short report and sold his position in SMCI before the big 25% drawdown.
Not only does Andrew provide you with new and exciting stock picks, almost more importantly, he tells you when to sell as well. Reading the tea leaves of the market is hard to due and having a professional on your side like Andrew can make all the difference. Be sure to check out Technology Innovators!