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Author: MTodd Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 11  
Subject: Whats with SMCI Date: 2/9/1998 10:08 PM
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Is the recent plummet just a knee jerk? It would appear that SMCI is still the same business that has been supporting 14+ and is poised for even more growth. Anybody know what the one time "unexepected R&D" expenses really were. Seems like that's what really killed the EPS. I snapped them up at 7.5, but it continues to drift down. What don't I know??

Thanks,

Mitch
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Author: overreact Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7 of 11
Subject: Re: Whats with SMCI Date: 2/10/1998 8:19 AM
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Market adjustments in NASDAQ are often immediate and extreme. Should SMCI have gone down? Yes. But 45%? I think not. I'm in at 7 and I am willing to wait.
My logic is similiar, Mitch. A 1-time R&D is NOT permanent bleeding. They have a good product, great customers, have been profitable, and they have just taken a BIG hit.
I think that for the short-term, the market is finding its bottom. (Is it around 7?)
After that happens, maybe the market will realize that SMCI is undervalued. This happens so often on the NASDAQ with basically good companies, such as EFII, CYMI, ADPT, CTXS, SECX, ENPT, to name a few.
But then, NASDAQ's beta is almost double the NYSE's.

Good luck bottom fishing

We'll see....

dwight

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Author: MTodd Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8 of 11
Subject: Re: Whats with SMCI Date: 2/10/1998 3:42 PM
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Hopefully the R&D expenses are not a sign of real trouble in the continuing development of their flagship product. With all of their recent acquisitions, I guess that I am not surprised at some additional expense involved with integration of products and development (if that's what it was for). Hopefully this quarter will bear some fruit on the earnings side.

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