Value- SMCI vs AAOI
No doubt SMCI is a finer company- no comparison. I owned both when valuation was good. SMCI was a hard luck story for me for sure. I mean I believe you should keep a stock for at least several weeks after a good report, and I did just that with SMCI after their Sept 2022 quarterly report. I was walking in a certain park every day last year around 8 AM- 9 AM, and walked for an hour or so. Every day I owned SMCI, I just couldn't figure out why it wouldn't move. I mean $70 to $79 back and forth a dozen times during the 8-10 weeks I owned it. I finally got frustrated, and with good reason. However who knew AI would hit the way it did. At the time, SMCI had an 8 PE. How was I to know it would skip to a 15 PE overnight, and then to a 24 PE going forward, after years under a 10 PE !
Point is though, I play almost any stock with halfway decent liquidity, that looks well undervalued. However SMCI is no longer under valued IMO, unless one wants to just keep yanking up the valuation. However I find when that happens, it gets much more risky to own the stock, as there's always competition, and super growth in a new technology only lasts so long in general. Another stock that mimicked SMCI for me was TTD, which I brought up to the board at $69 a few years ago, but I had no idea how to value it, and I no response at the time from anyone on the board. I had around 7000 shares of that one as well, and it went to over $1000 over the next 18 months ! I guess we all have our stories.
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