UBNT

Investment Analysis Clubs Saul’s Investing Discussions
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Wall Street absolutely loves companies that beat, raise and flash a lot of cash. Ubiquiti (UBNT) did just that this afternoon:

http://tinyurl.com/z76f4gj

UBNT reported record revenue and earnings.

The Q2 earnings report highlighted EPS of 58c, vs 51c consensus. Q2 Revenue was $161.9M, vs the expected $155.08M. The company guided higher for the next quarter, too.

And, oh yeah, UBNT is sitting on a cash pile of $496.7 million, up 28% year-over-year and 14% sequentially. Operating activities generated $77.3 million in net cash.

I like Pera. I like the company he created. It’s a bit off-beat, but it’s a lean machine stripped of frills but making lotsa money.

Want more? The short interest is 11.72%, and given the small float, that’ll take 16 days to cover. What that means is that, in the coming days, as analysts revise their projections up, shorts will be covering. I consider that a win-win.

Yeah, I’m smiling.

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Putnid,

I’m smiling too. I was rather confident earnings would be stellar. UBNT has a long runway.

AJ

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I’m glad you’re smiling, AJ, I really am. UBNT has been a profitable investment for me and I’m delighted it has been profitable for you, too. As for runway length? I’m never sure. I’m fairly sure the next three months will be pretty favorable (unless overall Market conditions dictate otherwise). Here’s the thing though: the tech sector is ferociously competitive. The king today is tomorrow’s pauper. I’d never buy shares of a tech stock with the notion I’ll be gifting them to grandchildren. That’s just the way it is.

But, hey, in the meantime, let’s celebrate! (and keep our eyes on any and all new developments)