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Ubiquiti Networks, Inc. Message Board

  • justinvestorguy justinvestorguy Aug 28, 2013 9:25 PM Flag

    UBNT Looks expensive at current price

    UBNT is trading at all time highs with the following fundamentals:

    Shares Outstanding: 87.1M
    Price/Earnings (TTM) 37.98x vs. 15.04x Industry Average
    Price/Sales (TTM) 9.23x
    Price/Book (MRQ) 20.24x
    Insider Trading Activity
    During the most recent quarter, 24M shares were sold in insider trading. Source: TD Ameritrade
    Upgrades & Downgrades History
    Aug 10, 2012 Capstone Investments Downgrade Buy Hold
    Aug 10, 2012 UBS Downgrade Buy Neutral
    Aug 10, 2012 Deutsche Bank Downgrade Buy Hold
    Price Target Summary
    Mean Target: 33.11
    Median Target: 33.00
    High Target: 42.00
    Low Target: 25.00
    No. of Brokers: 9

    TD Ameritrade shows future earnings of :
    Q1 2014: .39
    Q2 2014: .39
    Q3 2014: .41
    Q4 2014: .42
    Can anyone tell me why this stock is worth more than $37 a share? Serious responses only.

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    • Its trailing numbers are off because a major counterfeiting ring flooded the market with cheap knock off that scared away buyers. The counterfeits have found and arrested and sales are now normalizing. Earnings are skewed because the market retreated when they were afraid of phony products.

      Sentiment: Strong Buy

    • At the current price, this stock is over overvalue. Nothing justify the 3.2 Billion $ market cap.

      Sentiment: Sell

    • ohbabyno123 Aug 28, 2013 11:53 PM Flag

      A couple reasons...

      1-those sell-side analysts may unfairly comparing it to other companies that are not in the same league. It just goes to show you that they don't know what they are doing.
      2-recent earnings have caught many of the analysts off guard. Therefore, future estimates will be recalibrated.
      3-the china conviction sends a strong message to other copiers NOT TO MESS. Coming from china, that's pretty damn good. Best place to send that message given the established corruption.
      4-the firm is lean and mean. Opportunity to grow but grow intelligently.
      5-Although the founder may have major ownership -- and would not be subject to any takeover -- he has a price or exit strategy in mind AND it will be very high. A company like Cisco would simply ask him, "name your price and write it on this napkin". Done deal. Could happen anytime but most likely after a couple more blockbuster quarters.

      Personally, I would not short this stock. You're gonna get hurt badly. If you must, do it intra-day. Overnight announcements of a possible friendly buyout could occur any day. Once this happens, there's nothin' you can do about it.

      I welcome comments.

      Sentiment: Strong Buy

53.13-0.07(-0.13%)Sep 26 4:00 PMEDT