Please share your thought on a few issues others have referenced in the last few days. First, is the strength of the dollar (+ 30%) and how this creates a price increase for products sold else where. Seems to me if UBNT is purchasing materials and supplies with dollars they realize a 30% discount plus all manufacturing is in China. Doesn’t that mean materials are cheaper and labor is the same? If the products are then shipped and sold all around the world why would they have to raise their prices? I understand foreign currency to dollar exchange is where you take the 30% hit but, you’re talking profit not a competitive disadvantage at point of sale. Second topic is why the strong dollar didn’t seem to be an issue. Was this a big stocking quarter with the new venders in dollars?
Another thought was…. Pera may have given the short crowd the item to hammer the PPS next quarter…..receivables. Remember last year when he said inventories would rise and how the shorts slammed the stock, when it did?
Someone guessed millions of short shares were covered Friday. I don’t think so. My guess is…..there are more shares short now than Thursday. These guys are not going to tuck tail and run. They will disappear but only after they've sold the puts and bought the calls.
Does anyone think the gap will be filled? Charters preach this and if that’s true we should all be able to buy below $26.50. Enough for now and quit talking about poon. That's been the #1 topic my whole life.