Shares of Super Micro Computer (SMCI 33.18%) were surging today as investors awaited a plan from the company to stay in compliance with the Nasdaq and maintain its listing.
Following a delay in its 10-K filing, the Nasdaq told Supermicro in September that it was out of compliance with its standards and that it had two months to file the annual report or submit a plan to get back in compliance.
That deadline is expiring today, but investors were optimistic that it would submit a plan after Barron's reported on Friday that it was on track to do so. As of 2:13 p.m. ET, the stock was up 23.4% on the news, though it had not yet submitted a plan.
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Supermicro bounces back
At this point, today's jump is just one small chapter in the larger drama around Supermicro, as the stock is still 60% from its peak before Hindenburg Research released a short report on the company, accusing it of accounting problems, which preceded its delay in filing its 10-K report.
In that context, it's hard to see today's gains as a real positive development for the company, at least until we see what the compliance plan includes.
In its preliminary third-quarter earnings report, the company also its special committee would release a report on remedial measures to improve its internal governance, by the end of last week, which it has not yet done.
NASDAQ: SMCI
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Can Supermicro recover?
Regardless of what is in the compliance plan, Supermicro still has a lot of work to do, as it must find an auditor, as well as file its 10-K and now its 10-Q for the first quarter, which it just said would be late.
The stock could recover, but investors shouldn't mistake the stock's rebound today and Friday for a meaningful turning point in this saga. Nothing's changed yet with the company's underlying financial reporting challenges. Until it does, the stock is best avoided.
