The “looking into” is subsequent to the blog post.
Fwiw, following someone on Twitter is how you can send a direct message.
Wouter seems to make the case it would be very difficult to pull off, but I’d be interested to hear other dissenting opinions.
At some point cash will tell the story. UBNT has done buybacks which is plus, they have most of their cash offshore (which is not that uncommon) and a significant sales outside of US where accounting seems to be having gaps. It may not be outright fraud, but there could be lot of less than ideal behavior.
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In this particular case, it is important to note the short attack that came back in September from Citron Research. Based on the list of things disclosed as being part of the inquiry, it sounds that this SEC inquiry is directly the result of that short attack.
Here is a link to that attack.
http://citronresearch.com/citron-exposes-ubiquiti-networks/
Follow-up on the attack:
http://citronresearch.com/update-questions-ubiquiti-ceo-inve…
The SEC inquiry disclosed today by Ubiquiti may end up being a bit of a bail-out for aiding Andrew Left to exit his short position…along with providing Ubiquiti with a more advantageous buy-back price.
As I was thinking last week, it seems that this SEC inquiry disclosure could well be a “dark cloud to see through” to steal a phrase from David Gardner regarding rule breaking companies.
8 days later, the market (aided certainly at least partially by UBNT share buybacks) seems to fairly steadily be agreeing with me…the $60 March calls that I (boldly/Foolishly/foolishly?) bought on 2/20/2018 and 2/21/2018 for cost bases of $1.80 and $1.64 have turned out nicely with now greater than $3 of intrinsic value. The $70 2020 calls scooped up for $6.30 now have a market value of about $11.00 with 688 days till expiration.
The September ordeal and this follow-up are in a way making me a fan of Andrew Left and Citron research with the short-term opportunities they have presented. Apologies for the options talk, but interesting to note the relatively quick partial recovery for Ubiquiti.
From the time last March when I first dove deeply into researching Ubiquiti just before buying shares (before discovering this board), I have had the thought that Ubiquiti may eventually be a case study held up for their innovative business model. That may still be up for debate, but I won’t be surprised if it happens.
volfan84
long UBNT (including 2020 $70 and $85 and March 2018 $60 call options)
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Goodness gracious, this recovery has been fiercely quick (from a low of about $48 last Tuesday 2/20/2018 back up to above $67 here on Thursday 3/1/2018). Wonder how much of it has been fueled by buybacks versus the rest of the market figuring out that the SEC inquiry seemed to simply be a follow-on to the Citron attack.
Relating to Ubiquiti Networks CEO Robert Pera and the Memphis Grizzlies:
News of those guys exercising that option came out on November 30, 2017…so 90 days after the clause was triggered should work out to February 27th or 28th. Now I am even more convinced that this relates to the Grizzlies ownership situation.
Per what I can see from the link below, it looks like the Grizzlies have been valued at $1 billion by the minority owners and that the ball is in Robert Pera’s court as to whether to buy out the minority owners.
https://www.bizjournals.com/memphis/news/2018/03/12/sources-…
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