Andrew Left came out guns a blazing against Ubiquiti Networks. I have no position here and won’t in the near term. This is a type of risk to avoid because you never know when a headline can blow up your position.
That said, I think it’s worth studying all of these situations just to learn so we can avoid stocks that could be battlegrounds like this one. Here’s a look at Left’s pitch.
Since Left announced his claims, Ubiquiti has done very little to inspire confidence that he is wrong. The CEO has acted oddly calling the shorts clowns and manipulators and then refusing to come on TV, but respond by taking questions on Twitter.
I am consumed with product development and don’t have time to entertain accusations of stock manipulators. But, will take questions here
— Robert J Pera (@RobertPera) September 18, 2017
If you check out Pera’s twitter page it shows him dunking, a terrible smug stock photo AND he includes his middle initial in his name. This guy comes across as a complete jerkoff, but that doesn’t mean his company is fraudulent.
However one major yellow flag is the latest product Pera has shown on his twitter. It’s a GoPro type wearable with other features. I thought this is a router/networking company for business customers?
This morning Ubiquiti has raised guidance for this quarter and increased the share buyback. Some might say this is all proof they are a good solid company. I’d call it exactly what I would do if had something to hide and needed to deflect attention and find an easy way of inspire belief.
Is that really just that simple? Maybe.
Trade ’em Well.