UBNT SA article by Bert

I like Bert, one of few on SA who knows what he is talking about most of the time… this is a great UBNT analysis by him.




Conclusion from Bert’s UBNT article…

…Ubiquiti is not a story without controversy and risk. Obviously, it has a number of important product launches that are key to its success. There is loads of controversy regarding growth which relates to the company’s product initiatives. There are those who do not believe that the gross margin performance is a function of mix and think it is price competition. Those observers further believe that the company’s build-up of inventories and its increase in DSO reflect competitive pressure more than a specific company strategy. There is nothing I could write that would prove the opposite point of view - I simply do not find the negatives to make sense based on the preponderance of evidence in my crystal ball.
Investors are getting paid to take the opposite viewpoint with a very low P/E ratio and reasonable metrics in terms of likely forward free cash flow and EV/S. After a significant contraction, I think the shares offer investors a reasonably positive balance of risk and rewards and are likely to produce positive alpha going forward.


Thanks for bringing this to our attention MC.


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Ok, if you like UBNT’s CEO, you should Love T Mobil’s CEO,
and maybe buy the stock! TMUS

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