The problem with the recent rally in shares of Super Micro Computers (SMCI) is that the firm did not file its financial statements. It hired BDO, an accounting firm, to replace Ernst and Young, who resigned.
SMCI faced severe technical resistance at the 50-day moving average. Shares closed at $34.43, down by 10.36% on November 26. Momentum traders will decide on SMCI’s stock price. Investors who do not want exposure to SMCI’s delisting risks already sold the stock.
General Motors (GM) pulled back by 8.99% on Tuesday. Its fresh 52-week high at $61.24 did not last when the stock closed at $54.79. President-Elect Trump’s vows to impose more tariffs on its trading partners, Mexico, Canada, and China, will hurt GM. The automaker builds vehicles in Mexico and Canadian plants. Furthermore, firms will pass most tariffs to consumers. This increases vehicle prices, hurting demand.
Celanese (CE) is unable to build a support zone at $75, after falling from $125 on November 4, 2024. Business conditions for the chemical maker are weakening in Europe and China. The industry has an oversupply of Nylon (acetyls), for example. Despite the macro headwinds, CE stock is attractively priced. Value investors are adding to their position at current prices. They may buy more shares at below $70.00.