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UBNT - Ubiquiti Networks


jouni1

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Guest Schwab711

I know the 2nd paragraph I quoted to be true for UBNT as well. It would be pretty funny if half of Silicon Valley is hiding corporate entities to improve their financial results.

 

I think avoiding tariffs has been the key to their success in South America, so maybe the US/China trade war will actually increase margins/sales.

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Ben Moore, who is effectively the COO of the company, has resigned.

 

https://www.sec.gov/Archives/edgar/data/1511737/000141588918001336/form8k-09072018_010911.htm

 

This leaves Pera and Chief Accounting Officer Kevin Radigan as the company's only executive officers. ???

 

I've owned oversized long positions in $UBNT twice in the past, but can't  come close to underwriting an investment at the current price.

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Another amazing quarter.  Stock way up today.

https://www.businesswire.com/news/home/20191108005150/en/Ubiquiti-Reports-Quarter-Fiscal-2020-Financial-Results

 

Revenues of $323.3 million, increasing 14.3% year-over-year

GAAP diluted EPS of $1.43, increasing 23.3% year-over-year

Non-GAAP diluted EPS of $1.44, increasing 23.1% year-over-year

Repurchased 3,635,534 shares of common stock at an average price of $114.49 per share during the quarter and an additional 995,495 shares of common stock at an average price of $120.11 subsequent to September 30, 2019

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The shares arent necessarily expensive now although I am not buying here. New line of products released, trading at 30PE with 20 percent growth, small amount of publicly traded shares that will be bought back, shorts will have to cover. Pera is an inventor who makes products people use to build businesses and can keep r&d low.

 

They continue to move up market

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http://otp.investis.com/clients/us/ubiquiti_networks_inc/usn/usnews-story.aspx?newsid=70243&cid=2283

 

"Repurchased 5,842,800 shares of common stock at an average of $119.45 per share"

 

The market value is ~50% greater than the average purchase price paid for ~5% of the company this year.  Pera has been remarkably steady and timely with share repurchases.  He is close to 80% ownership now.

 

I do wish Pera would provide an annual letter to shareholders

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http://otp.investis.com/clients/us/ubiquiti_networks_inc/usn/usnews-story.aspx?newsid=70243&cid=2283

 

"Repurchased 5,842,800 shares of common stock at an average of $119.45 per share"

 

The market value is ~50% greater than the average purchase price paid for ~5% of the company this year.  Pera has been remarkably steady and timely with share repurchases.  He is close to 80% ownership now.

 

I do wish Pera would provide an annual letter to shareholders

 

A letter would be nice, but it is more important that he just keep doing what he's been doing.  Actions speak louder than words. How many CEOs make a big deal about share repurchase at the top of the market only to suspend them as soon as the price drops a little bit? 

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Article on Pera buying properties (nothing more then entertainment here)

 

Grizzlies Owner Robert J. Pera Goes Coast to Coast Buying Trophy Homes https://www.wsj.com/articles/grizzlies-robert-pera-homes-11602783796

 

Thanks for the article.  Pera is definitely a character. 

 

"Mr. Pera's company ultimately filed plans for a residence on the site by Seattle architect Eric Cobb, which called for a 17,000-square-foot, 70-foot-high building made largely of glass and granite. Community Board 1's Landmarks and Preservation Committee initially rejected the proposal late last year, but later approved a modified version, according to Bruce Ehrmann, chair of the committee who had criticized the original design as hostile.

 

"The original proposal was intended to shelter whoever was the purchaser from the neighborhood," Mr. Ehrmann said. "The lower levels looked like the ramparts of a medieval fort.""

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Amazing multi-bagger.  Extremely focused on customers, and owns 90% of the float.  Wow.  Very few people own this.  You'd have to wonder why he still stays public...

 

I don't know why he stays public. There are few owners and fewer all the time the way they keep buying back shares.  It was trading at $150-$160 a few weeks ago and if the past is any indication I'd bet they bought back some shares under $160.

 

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If I'm reading the requirements correctly, the NYSE requires  $100M in publicly held shares, so for a $12+B company that is less that 1% that needs to be publicly held.  It also requires a minimum number of publicly held shares, but he could split the stock if he needed to in order to keep buying back.  So he can stay listed until he owns about 99%, more if the marketcap increases.

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