Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Ubiquiti Networks
So what: Revenue jumped 79% in the third quarter to $91.7 million, with adjusted earnings per share of $0.30. Going forward, Ubiquiti expects next quarter to see revenue between $93 million and $95 million, with adjusted earnings per share in the range of $0.28 to $0.29.
Now what: Perhaps more interestingly, there are reports coming out of China that CEO Robert Pera has ties with the Chinese mafia and has sent goons to rivals' factories to intimidate and harass them in an attempt to get them to shut down. Local news outlets say Pera is now under investigation by local authorities. Pera is a former Apple hardware engineer turned entrepreneur, and Forbes recently profiled him as one of the world's youngest billionaires, thanks to his 64% stake in Ubiquiti. If the reports turn out true, Ubiquiti will have quite a problem on its hands.
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Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple and creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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