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02-02-2015, 06:31 PM
UBNT's produces hardware focused around wireless technology. Currently a lot of the Western world is served by physical cables for internet access which provides fast, reliable service. However this is expensive to install and while it makes sense for densely populated areas, more remote locations do not yield attractive returns on investment for Internet Service Providers (ISPs). This is where wireless technology steps in, particularly in the developing world where a lot of communities are rural. Wireless roll out is simpler and cheaper, and now that the technology has advanced, it provides an acceptable, fast service to customers (note that I am talking about how ISPs get data throughout the network as a whole, not whether the end user has wireless or wired).
Their products are cheap and good, as evidenced by that fact that all their sales are through customer recommendations and 'word-of-mouth', they have no sales & marketing employees or budget.
The company is growing revenues rapidly at 40%+ per year, and is very profitable. It sells at a P/E of just 13 excluding cash. There is an eye-watering number of shares short too suggesting general pessimism about the stock.
Am interested to hear other peoples views on this, I did a full write up on the company on my blog at https://investingsidekick.com/ubiquiti-u...nt-thesis/
Their products are cheap and good, as evidenced by that fact that all their sales are through customer recommendations and 'word-of-mouth', they have no sales & marketing employees or budget.
The company is growing revenues rapidly at 40%+ per year, and is very profitable. It sells at a P/E of just 13 excluding cash. There is an eye-watering number of shares short too suggesting general pessimism about the stock.
Am interested to hear other peoples views on this, I did a full write up on the company on my blog at https://investingsidekick.com/ubiquiti-u...nt-thesis/