SMCI is technically compressed in a purchase zone with strong fundamental growth metrics, warranting attention as a potential buy.
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and it leads us to the last one, which I made a video about two days ago. I know which one it is. It's SMCI stock because it keeps showing up on all my trading scanners here. As you can see, it's in the purchase zone, isn't it?
It is 3.1% higher than the pivot point, and the reason we sell covered option contracts is to generate income while we wait. When I made this video, the price was around here, then it went up a little, then it went down a little, and that's what stocks do.
During that period, if you had sold covered options, you would have made a profit of between 1 and 2% in that week. This is something we like. We like to earn money even if the stock doesn't move in our direction.
Of course, we believe it will move in our direction when we buy it, but we don't know for sure. We are not Nostradamus. Therefore, if the stock does not move in our direction, the reason we sell someone else the right to buy our stock at a predetermined price and date is that we take advantage of the erosion of time value (theta). This is the income we want.
However, you can see it in the purchase area here. Let's take a quick look at the weekly chart. You can see that the arrow turned green 4 weeks ago. We are now in the fourth week of a bull market.
The arrow compressed itself like a spring, and that's what we see here. It has been in a very narrow range and has not moved much, which means that market makers are supporting it these past few weeks.
This is what we call a 3-week compressed spring. This gives him the energy when he finally decides to go for it. There are a lot of good things happening to SMCI stock,
let me click on the basics so you can see what I'm looking at. You can see 2024 going from 15 billion to 20 or 22 billion. What a huge leap. It's almost a half jump, isn't it? An extra half.
Then to 39 billion, which represents an increase of approximately 50%. You can see the numbers, can't you? 47, 78, 67 billion now. Ah, it's 79. Now, they had a minor profit problem in 2025.
They also had a minor accounting problem. But I think all of that is behind them now. Therefore, you can look at the three-year compound earnings per share, which is 45%. The top 20 minimum.
So, this is double that. The top 20 to 25 minimum in sales or on an annual basis. Look at that, 76% vehicle. The power of "Guinness" is 79 in the group. So, she has some power there.
It's group number five out of 124. It has some strength there. The strength of "Genius" is 96. Therefore, it performs better than 95% of the stocks in the database. That's why I recommended it, and it started to rise above "recommended" because I don't recommend anything.
I just point things out and you do the research.
What this channel has said about $SMCI
Cash Flow Machine | Mark Yegge | Wealth Architect has 2 calls on this stock; only the adjacent ones are shown.