Someone sent me a question off board that I thought would be useful to post:

I like so many others benefit greatly from a small few on this board. I have a question and don’t wish to clutter the board with it. Would you mind giving me your opinion on UBNT? Its my largest position and I took another larger stake after the great earnings and subsequent pullback to $61, however it’s pulled back hard the last 2 days while the rest of my port did well. Do you have any sense of what is working against UBNT?

Well, I’ll start by saying that it’s one of my smaller positions, but I did add to it yesterday, and more today. I think one issue pushing it down was that the CEO, Pera, sold 1 million of his gazillion shares (57 million, or something like that, which is 69% of the company stock). To me that’s a non-issue. There was also some skepticism, as always, about their latest new product, but their guidance was based on existing products, and the new ones are gravy. They massacred expectations last quarter, and they are selling at about 15 times forward earnings so I was willing to take a chance on enlarging my position (considerably), but I’ve certainly been wrong before so make your own decisions.



I wouldn’t make Ubiquiti my largest holding, but I hold some. I bought all my shares at $51 back in March, and the current price is starting to look attractive, too, now that I think of it. With its volatility, I’m going to stick with buying it on dips, as long as the thesis holds.

1 Like