Trading at $28, Super Micro Computer (NASDAQ:SMCI) shares dropped a further 15% Thursday following auditor Ernst & Young's (EY) resignation amidst ongoing concerns over governance issues. Super Micro joined the S&P 500 in March, but it it fails to provide a compliance plan by Nov. 16, it may be delisted from Nasdaq. For SMCI, which got a non-compliance warning in September, the drop adds to what has been a tumultuous year. Nasdaq has demanded that the business show a correction plan or face delisting, a challenge SMCI has previously encountered after being delisted five years ago.

• Warning! GuruFocus has detected 5 Warning Signs with SMCI.

Analyst Vijay Rakesh of Mizuho Securities has maintained a neutral rating and set a price target of $45, expressing some cautious optimism but also showing worries about internal financial controls. Citing issues concerning board independence, governance standards, and internal controls initially surfaced in late July, EY's resignation letter said the company could no longer back SMCI's financial statements. To handle these problems, a special board committee was established, but recent events caused EY to decide it was "unwilling to be associated with the financial statements prepared by management."

This article first appeared on GuruFocus.