So are you selling it?
âUbiquiti CEO Robert J. Pera responds to Citron Researchâs claims on Twitter: âI just put my head down and let the products and numbers speak for themselves. My apologies to those affected by these clowns.ââ
Iâm skeptical of the Citron research. Itâs not his option on the Grizzlies. Itâs the minority ownersâ option. A lot of it seems to be a person attacker on the founder. Iâm not sure how their claims can be correct when the financials are audited.
http://www.citronresearch.com/citron-exposes-ubiquiti-networks/
They are having an investor day Sept, 26.
The revenue per employee is so high, because they use design agreements with partners for parts of products. Itâs super common now. All the big manufacturers have design capabilities. If part of your design is reference or industry standard, then itâs way cheaper to use them to design that portion. It happens every day with laptops, cell phones, rack mount servers, etc. The Chinese are WAY better at designing hardware for low cost manufacturing which leads to higher margins. Part of my job at my last company became product tear downs and competitive analysis. It was insane how much more efficient their designs were. It was a 20-30% cost delta just on materials.
2 Likes
Is Sep so it could be timed to achieve max effect. If it is not Sep, I would be very worried. Remember Sep is the typical month that stock market is usually soft. This is not the only ticker that have bad news coincidentally happen in Sep.
Ok so maybe itâs time to buy instead 
Thatâs where due diligence is critical and information is power. How do you know is fake news or real problems? The former is buying opportunity, the latter is cut loss. I know AAPL like the back of my palm, but hardly know these companies and the character of its CEO/ founders. I need a few more years 
è·Żé„ç„é©ŹćïŒæ„äč
è§äșșćż
1 Like
Itâs barely below my purchase price. Iâm debating adding more.
If youâre not sure, then short puts 
Gain less but lose less too. Buy underlying only if youâre very sure is fake news.
I thought about that too. The $45 puts are nicely priced. The stock has held above that for a long time. Thereâs a huge short-interest and has been for while. Itâs going to get crazy expensive to borrow shares since the founder owns 70%. I think thatâll make the shorts lost interest.
OK. I did my first short put on the Oct $45.
1 Like
I lost 7.5% so far UBNT, bought more yesterday at 49.5 around, set further limit purchase $46.
Activists work will be shadowed when results are good,
Already announced an additional $100M stock repurchase and pre-announce quarterly revenue will be higher than guidance.
Today has heavy fall on SUPN (almost 23.5%) with 10x heavy volume, do your own analysis ! High Risk attached too.
Source: Why Supernus Pharmaceuticals' Shares Plummeted 23.4% Today | The Motley Fool
What happened
After reporting disappointing interim news from its phase 3 study of SPN-810 as a treatment for aggressive impulses in ADHD patients, shares in Supernus Pharmaceuticals (NASDAQ:SUPN) tumbled 23.4% today.
So what
Supernus Pharmaceuticals markets two commercial-stage epilepsy medicines, but a lot of investorâs optimism has been tied instead to SPN-810, a drug thatâs being evaluated in two phase 3 trials for use in controlling aggressive impulses in ADHD patients.
After the closing bell yesterday, Supernus Pharmaceuticals announced that itâs discontinuing one of the two doses of SPN-810 that were being evaluated in its trials following an independent interim review. Until now, the company had been randomizing patients to receive 18 mg or 36 mg of SPN-810 or a placebo, but from now on it will study only the 36 mg dose.
Management thinks the 36 mg dose gives SPN-810 its best shot at a phase 3 success, but investors are concerned that abandoning the 18 mg dose implies a greater risk of an overall SPN-810 trial failure.
Now what
SPN-810 is the most advanced drug in Supernus Pharmaceuticalsâ pipeline, and investors are clearly disappointed that the interim SPN-810 data wasnât better. Nevertheless, investors might not want to get too bearish because of yesterdayâs news. SPN-810âs trials continue to enroll patients, and thereâs still a chance that the 36 mg dose will be successful. Following todayâs drop in share price, a trial failure might already be priced in.
If so, an argument could be made for buying Supernus Pharmaceuticalsâ shares on sale. In the second quarter, net product sales of $73 million were up 46% from the same quarter in 2016, and EPS of $0.32 was up from $0.18 last year. Managementâs forecasting revenue of at least $280 million and operating income of at least $82 million this year, and the company appears on solid financial ground, with $198 million in cash and securities on its balance sheet exiting June.
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why purchase a falling knife?
His specialty
Remember 2008-2011 buyers of real estate ! If the company is good for long term, short term fall is an opportunity.
They key issue is to analyze in detail whether the company is good or not.
Buffet made empire like this ! He chooses the best company, at worst hit times, buy in bulk. He has mastered the art !!
4 Likes
1 Like
I donât get it though. The 4 stocks they talk about arenât even growing revenue that fast. The yr/yr growth rates are 10% or less. Thereâs no justification for the price climb unless you think revenue growth will dramatically accelerate.
Some1 donât like MF, upon MF article, 3 growth stocks to buy and hold, shorts pile on IRBT. Of course, market is tanking too, fearful of the impending Fedâs balance sheet reduction. IRBT is testing support again. Exclduding IRBT, sCap would have been green in a sea of red.
Probably just a newbie journalist trying to carve himself a name. If he is right, he would be well known.
Doubled my stake in SHOP since it was down 4% at one point. Also bought some January calls on XBI which broke out today.
I still havenât increased my stake in VEEV. Waiting for a better technical point to buy more.