8/6/24 - $smci - Punting long print @ $6008/6/24 :: VROCKSTAR :: NASDAQ:SMCI
Punting long print @ $600
- liquidity conditions generally look favorable for a day (maybe more?) but enough to punt on this beaten up sector on a name growing high 30's CAGR+ and trading 25x PE next year
- think the "surprise" that there's a lot more demand for full stack data center will drive more upside toward the $800 level (fair value, but that's what was hard for me to own back in april).
- will be volatile. took a 50 bps punt (typically wb 25 bps on EPS like this) mainly bc of the sell off y day leaving more room for upside in my estimation than downside risk.
- as always. size accordingly.
- curious if anyone has nuanced POV.
V