Should Investors Worry About Super Micro Computer's Short Attack? Or Should They Buy the Dip?
Super Micro Computer (NASDAQ: SMCI) stock came under attack from short-sellers this week, with the computer server specialist being accused of several financial improprieties.
The question for investors is: Should they be worried about the allegations and sell the stock, or is any dip in the share price a buying opportunity?
Short-selling is the process of an investor borrowing a stock from a current shareholder and then immediately selling it with the intention of buying it back later at a lower price. Short investors often pay a borrowing cost, which is interest a broker collects to lend out the stock.
Source Fool.com
