I had used Ubiquiti as an example to ask when a stock would “fall off” from being on-topic for discussion here, due to their slowing revenue growth rate. With the institution of a dividend to their capital return program, that might push UBNT even further from being “on-topic” here.
I still have half of my UBNT shares position that I had held since May 2017. If there is some unjustified price drop associated with a FUD event that gets overblown, I may look to add more again in the future. For now I plan to simply hold onto my shares.
For my speculation about the start of paying a dividend rather than their historically-preferred use of buybacks as a capital return for shareholders, I think the dividend is partially intended to allow Robert Pera to service a loan used to buy out his other Memphis Grizzlies shareholders. Additionally, it appeared that they had no desire to buy shares at prices above about $70/share based both on their average price paid for repurchases ($70.11, if I recall correctly) and on the much lower volume of shares repurchased in the most recent quarter (falling to about 1/10th to 1/8th of the volume from my rough recollection of the exact numbers) as compared to the quarter before.
If Ubiquiti as a company isn’t super keen on paying more than $70 per share presently, I don’t suppose I will be either.
Feel free to look back at my prior postings on Ubiquiti here on the board, as I had previously probably been one of the more bullish UBNT shareholders.
-volfan84
still long UBNT, but with only about a 3% (probably a bit less) position