UBNT

Investment Analysis Clubs Saul’s Investing Discussions
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UBNT announced earnings. Here’s what the last six quarters earnings look like: 46 48 50 56 48 53. It’s flatlining. This quarter is up just about 10% from a year ago (53/48). Revenue the last four quarters is 148 156 150 153.

I’m still out. That scenario doesn’t excite me.

Saul

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I agree Saul that wasn’t very exciting. I need to listen to the conference call.

Andy

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Looks like the market liked the report. Up 9% in After Hours trading.

Anirban

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Yup - which is weird since it was pretty mixed. Sierra was very good though as was Imperva but they got knocked AH big time.
A

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Yea but UBNT’s P/E is so cheap they would have had to have no growth for it to go down. This is a cheap stock right now.

Andy

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Yep it was like they were on the half yard line with the game on the line and they just had to not screw up.

Robert

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LOL

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TMF summary:

Ubiquiti Networks Inc. Earnings: A Big Bet on Enterprise Technology Pays Off

http://www.fool.com/investing/general/2015/02/05/ubiquiti-ne…

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The Market responded positively to UBNT’s earnings report in the after hours. I’m fine with that but the story still remains to be told in full.

I listened to the conference call (all 55 minutes). I rather like what I heard. Granted, Pera is still wet behind the years as a CEO, but I like his straight answers and his dedication to purpose. He intends to be a disruptive force in the marketplace and he’s working hard to be just that.

I’m thinking next week might be interesting. “The Street” reported earlier that short-interest in UBNT is >30%. That’s HIGH. Like nose-bleed high. There might very well be a righteous short-squeeze in the works, particularly if analysts chime in with upgrades (a whole lotta folks wrote the company off for dead…methinks they might decide to revise their opinions).

And should that short-squeeze materialize, there may be significant upside. After all, UBNT trades at a P/E <12, and a PEG <0.5. The return on equity is >60%.

My thoughts, as of the time I write this, is that I will pick up a few more shares if I see a short-squeeze develop. All I need is a few analyst upgrades and buying on high volume. If that doesn’t develop, I’ll simply hold. Pera is playing for the long-term and I’m a long-term kinda guy. I’m comfortable with that.

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Robert,
It’s just a darn good thing Pete Carroll wasn’t at the helm!

D.

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Earnings call transcript: http://seekingalpha.com/article/2891576-ubiquiti-networks-ub…

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