Ubiquiti Powers Ahead But It Faces Risks

  • The company is powering ahead and perhaps the most notable developments in 2018 is the explosion in cash flow and the massive buybacks.
  • These buybacks are reaching their limits as the float gets squeezed to a fraction of outstanding shares, given that the CEO holds 76% of the shares.
  • Which is why the company is now starting to pay dividends.
  • There are risks in the form of an SEC investigation and tariffs. We can’t handicap the first, but the tariffs look like considerable headwind.

Source: Ubiquiti Powers Ahead But It Faces Risks – Ubiquiti Networks, Inc. (NASDAQ:UBNT) | Seeking Alpha