Buying Shares of SMCI

What is SMCI?

Super Micro Computer is a Technology company in the Computer Hardware industry. This is a large cap investment with a Market Cap of $42B. Although this is not a dividend growth investment, nor is it part of my Easy Income Strategy, I believe the time is ripe for me to begin to build a position. Yesterday I bought one share for my ROTH IRA, and one share for my traditional IRA. My buy limit price for both orders was $700, so my total cost for the two shares is $1,400. This is a very small investment in our total portfolio.

Description

Super Micro Computer Inc provides high-performance server technology services to cloud computing, data center, Big Data, high-performance computing, and “Internet of Things” embedded markets. Its solutions include server, storage, blade and workstations to full racks, networking devices, and server management software. The firm follows a modular architectural approach, which provides flexibility to deliver customized solutions. The Company operates in one operating segment that develops and provides high-performance server solutions based upon an innovative, modular and open-standard architecture.

More than half of the firm’s revenue is generated in the United States, with the rest coming from Europe, Asia, and other regions.

Looking Deeper

When I consider an investment, I am less concerned about the stock price and far more interested in returns, growth, and profitability. I believe SMCI fits this requirement. Some of the resources I review include those on Fidelity’s website (the equity summary score), Seeking Alpha’s QUANT rating, the Weiss Ratings evaluation, Wallmine, and Stock Rover. While SMCI is not without risk, it is a good long-term profit monster.