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  "docSlug": "81a891429a42",
  "documentTitle": "Super Micro Computer, Inc. (SMCI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-01-10 00:00:00",
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  "pageNumber": 23,
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  "notes": "Uses a red callout box to highlight the contradiction between the last repurchase date and the company's fair value target.",
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      "kind": "callout",
      "text": "SMCI last repurchased stock close to the low end of our fair value price target",
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      "kind": "metric",
      "text": "Stock Repurchases: $0",
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      "kind": "paragraph",
      "text": "SMCI astutely repurchased stock in 2020-2021 ahead of the recent increase in its share price. However, if the Company’s claims are accurate, and revenue will be $8 - $10 billion in 2024 growing to $20 billion, why has it ceased repurchases for over a year?",
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      "kind": "quote",
      "text": "Looking ahead, I anticipate fiscal year '24 revenue may reach the range of $8 billion to $10 billion... I believe we will soon become a $20 billion revenue company.",
      "attrs": null,
      "subkind": "testimonial",
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      "kind": "quote",
      "text": "Looking ahead, I anticipate fiscal year '24 revenue may reach the range of $8 billion to $10 billion, considering the current economic headwind may be lasting for many quarters. As we continue to gain IT market share with the best rack scale plug-and-play IT total solutions, I believe we will soon become a $20 billion revenue company. Our business model have been optimized, our engineering teams are fully ready, and our worldwide campus production capacity and efficiency are now second to none. — CEO Charles Liang, Q1 2023 Conference Call",
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      "kind": "source-note",
      "text": "Source: Q1 2023 Conference Call; SMCI SEC Filings",
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      "kind": "table",
      "text": "SMCI Stock Repurchase Program table showing repurchases, average price, cash, and capacity from Sept 2020 to Sept 2022.",
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      "kind": "title",
      "text": "Why Has The Company Stopped Repurchasing Stock If It Sees Big Upside?",
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      "matchId": "17a514be-e0a1-4a39-b971-130803e9864b",
      "evidence": "Contrasts CEO revenue guidance with actual capital allocation behavior.",
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      "name": "Cost Of Inaction",
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      "bestFor": "Urgent budget requests, compliance, risk mitigation",
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      "evidence": "The document emphasizes the risks of not selling SMCI stock, including financial restatement risk",
      "position": 1,
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      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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      "description": "Quantify what happens if the audience does nothing"
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