Previous posts:

Made $87k off LOGI and bought AMD at $80 https://www.reddit.com/r/wallstreetbets/comments/m3ns7b/i_turned_1k_into_87k_with_logi_using_sell_and/

Bought homebuilders before the boom https://www.reddit.com/r/wallstreetbets/comments/hnqsae/buy_home_builders_now/

Bought more AMD LEAPs at $80 https://www.reddit.com/r/wallstreetbets/comments/n4r47g/amd_an_explanation_on_merger_arbitrage_and_how_to/

The next stock I'm going into is a bit of boring one but it reminds me a lot of LOGI before the stock exploded in 2020. Ubiquiti sells enterprise-grade networking and security camera equipment at prosumer prices. They had a nice run up in 2020, same as everyone else, but then have been consolidating for almost all of 2021.

https://preview.redd.it/a27vxa91svc81.png?width=697&format=png&auto=webp&s=660f65622f9345f90d7ab485a71c45ba8f4f5808

Fundamentally, I believe UI is going to replace the big enterprise players in the office space, eg. Cisco, as more companies move from a 'work at our giant office building' to a 'work from home with local collab spaces' mentality. In a large office building, it makes sense to deploy the big enterprise equipment, that's where Cisco et al shine. But in a smaller, one or two story workplace, you need something that's cost effective but enterprise grade. That's where UI stands alone. Small offices, workspaces, coffee shops, restaurants, and prosumers that want the best for their own home.

Seriously, go into your local restaurants, or workspaces and look up. If you see this on the ceiling, it's a Ubiquiti customer:

$UI spotting

Last quarter UI missed estimates due entirely to parts shortage. That's not to say that they were making less product than usual. They were making as much as ever, they just couldn't make enough to meet the new, higher demand. UIs website showed nearly every product out of stock. It reminded me a lot of what LOGI's website looked like in 2020 when I bought in. However, in recent weeks a lot of the network equipment has been coming back in stock and now it's mainly cameras that are out of stock.

https://preview.redd.it/dt2dtmqd8wc81.png?width=1158&format=png&auto=webp&s=6d4fd3ff0ef60a09cf9d33b4e19c518e143e417d

This tells me that the demand remains extremely strong and Ubiquiti is starting to catch up in production. I expect the extremely strong demand to continue and supply constraints to ease over the next year which will equate to higher revenue and hopefully higher stock price. When? I don't know, sometime over the next year is my hope.

Another positive for UI is that during this whole transition out of tech, SPY and QQQ plummeting, UI was not nearly as affected, meaning it's not in the hedgi rolodex for larger market selloffs, allowing it to stand on it's own merits. I like that.

https://preview.redd.it/8dn2pd6ygwc81.png?width=699&format=png&auto=webp&s=de90797b6f5ad4a910895c595881f17f4f7cf35b

Another positive was that about a year ago, UI was hacked. https://krebsonsecurity.com/2021/12/ubiquiti-developer-charged-with-extortion-causing-2020-breach/ How is that a positive? Well the hacker was caught and arrested, which is nice. But more importantly, almost every company goes through some sort of hacking scandal and when they do, they double down on security. Those added costs are now baked into the bottom line and it's rare for the same company to be hacked twice within a few year timespan. Looking over companies and charts, getting in a few quarters after a public hack seems to be a good time to get in.

Positions: $50k in stocks (options are too expensive for me rn)

Disclaimer: This is not financial advice, I'm not telling you what to do or how to invest. I'm only telling you what I'm doing. I'm also not an expert. I'm just an ape googling stuff and making guesses.