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Supermicro Stock Extends Rally on Anticipation of Plan to Avoid Delisting
Key Takeaways
Shares of Super Micro Computer ( SMCI ) climbed in early trading Monday, extending their rally on anticipation the company is preparing to submit a plan to avoid being delisted from the Nasdaq stock exchange .
Citing a person familiar, Barron's reported Friday that the server manufacturer expects to be able to meet the deadline set by the Nasdaq by submitting a plan by Monday.
Gains Come After Hit From Delisting Concerns
The gains come after the stock took a hit in recent months from concerns about the company's stock being delisted after it delayed filing its annual report in August. The company said it received a letter from the Nasdaq on Sept. 17 informing Supermicro of a 60-day deadline to file the late report, with a weekend deadline leaving Monday the effective date.
Earlier this month, the company said it "remains unable at this time to predict" when it would file the delayed annual report. Last week, Supermicro said its official first-quarter results would also be delayed, as it hires a new auditor to review its results after accounting firm EY resigned .
EY's resignation followed months of speculation about Supermicro's accounting after the annual report was delayed, and a report from short seller Hindenburg Research accused it of "accounting manipulation" and other violations.
Supermicro shares were up over 18% after the market opened Monday, but still down more than 80% from highs in March.