Is SMCI still under investigation and is it true that they were cooking in the books, were they cooking the books because they were not profitable? Isn’t it a good idea to stay away from companies that cook the books?

**Investigations and Accounting Concerns**: 1. **Ongoing Investigations**: Super Micro Computer (SMCI) is indeed under investigation. There are several lawsuits and allegations of securities fraud, including claims of accounting manipulation and improper revenue recognition. 2. **Accounting Manipulation Allegations**: The company has been accused of misleading investors with positive statements about financial performance, allegedly manipulating accounting practices to appear more profitable than they actually were. 3. **Reasons for Manipulation**: It is speculated that SMCI engaged in inappropriate business practices, including revenue recognition and internal controls, to boost profitability and meet financial targets. **Investment Considerations**: 1. **Avoidance of Cooking the Books**: It is generally advisable to avoid companies that engage in book-cooking activities. Such practices indicate a lack of transparency, ethical business conduct, and potentially fraudulent activities. 2. **Financial Health and Integrity**: Companies that manipulate financial statements often demonstrate a lack of financial health and integrity, which can lead to significant risks for investors. 3. **Reputational Damage**: The allegations and investigations surrounding SMCI can result in reputational damage, potentially affecting the company's ability to operate and grow in the future. In conclusion, Super Micro Computer is currently under investigation for alleged accounting manipulation and improper revenue recognition. Given the serious nature of these allegations and the potential for significant risks, it is prudent for investors to exercise caution and consider the potential long-term consequences before investing in such companies.