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Super Micro (SMCI) jumps as internal review finds no misconduct; to replace CFO. (00:24) SpaceX considers tender offer that boosts valuation to $350 billion – report. (01:47) Cheetah Net Supply Chain (CTNT) to acquire TW & EW. (02:27)
This is an abridged transcript of the podcast.
Super Micro Computer (NASDAQ:SMCI) closed 28% higher on Monday and is up nearly 7% premarket after an independent special committee found no evidence of misconduct by the board of directors or audit committee.
No restatement of reported financials is expected based on the findings of the review. Super Micro’s balance sheet came under the scanner after its auditor resigned citing concerns over the company’s governance, transparency, and internal control measures.
The artificial intelligence server maker has since appointed BDO USA as its new independent auditor and submitted a plan with the Nasdaq to achieve compliance and avoid getting delisted.
The independent review found no evidence to support the statements made by Ernst & Young in its resignation letter as Super Micro’s (NASDAQ:SMCI) auditor.
The investigation took over three months and did find some lapses in processes. As part of the investigating committee’s recommendations, Super Micro will appoint a new chief financial officer, chief compliance officer and general counsel, and has named Kenneth Cheung, previously the vice president of finance, as its new chief accounting officer.
Super Micro (SMCI) expects to become current with its financial reports within the discretionary period as part of its compliance plan to Nasdaq. It does not expect any restatements of its quarterly reports for the fiscal year 2024 or for prior fiscal years.
SpaceX (SPACE) is reportedly considering plans to sell existing shares at a price that could value the firm at roughly $350 billion.
That would be a significant premium to a previously mulled valuation of $255 billion, and would also cement SpaceX’s status as the most valuable private startup in the world, Bloomberg reported, citing people familiar with the matter.
SpaceX was last valued at about $210 billion in a tender offer.
The current conversations with SpaceX are ongoing and the details of a potential transaction could change depending on interest from insider sellers and buyers, the report said.
Cheetah Net Supply Chain Service (NASDAQ:CTNT) has executed definitive agreements for the acquisition of TW & EW Services, a California-based labor and logistics service provider.
The deal is expected to close on or about December 4, 2024.
With TW & EW’s integration, Cheetah (CTNT) expects to capitalize on additional service opportunities, and strengthen its position as a comprehensive supply chain solutions provider.
The total cost of the acquisition includes a cash payment of $200,000 and a share consideration involving the issuance of Cheetah’s unregistered Class A common stock valued at $800,000, with a per-share price at $1.704.
Premarket CTNT is up 225%.
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Catalyst watch:
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Citi Basic Materials Conference starts with companies presenting including Alcoa (AA), Air Products (APD) and International Paper (IP) during the week.
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The Morgan Stanley Global Consumer & Retail Conference includes Cheesecake Factory (CAKE), Hasbro (HAS) and Skechers (SKX).
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The Citi Global Healthcare conference begins and includes AbbVie (ABBV), Bristol-Meyers (BMY) and Merck (MRK).
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The Wells Fargo 8th Annual TMT Summit includes KLA Tencor (KLAC), Tenable (TENB) and Silicon Labs (SLAB).
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UBS is also holding the UBS Global TMT Conference.
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The AWS re:Invent conference in Las Vegas will feature a keynote address on Tuesday from AWS CEO Matt Garman (AMZN). The conference runs from Dec. 1 through Dec 6.
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Aflac (AFL) is holding its investor meeting.
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AT&T (T) has its investor day.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in mixed territory. Crude oil is up 0.7% at $68/barrel. Bitcoin is down 0.2% at $94,000.
In the world markets, the FTSE 100 is up 0.6% and the DAX is up 0.2 %.
The biggest movers for the day premarket: Zscaler (NASDAQ:ZS) fell 8% despite posting FQ1 results that beat expectations, as its Q2 profit guidance slightly missed forecasts.
On today’s economic calendar:
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10:00 am Job Openings and Labor Turnover Survey
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12:35 pm Federal Reserve Board Governor Adriana Kugler to speak on “Labor Market and Monetary Policy” before the Detroit Economic Club.
And finally did you hear the one about Enron? Yes, Enron. We’re diving into whether a post on X is a parody, a scam or something else in today’s edition of the Wall Street Breakfast newsletter.
Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.