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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (59594)	7/1/2017 1:56:37 PM
From: Paul Senior	Read Replies (3) \| Respond to of 78710

UBNT. Similar to NTES in my view. Namely, p/sales, p/stated bv very high. Perhaps a warning sign. It'd likely be an avoid as a value stock if anybody used these standard value metrics on either company for a buy decision. However, UBNT is same as NTES with: Relatively low p/e and relatively high roe (My Greenblatt view). Lots more cash than debt High profit margins Large revenue gains Has almost similar issue as NTES (for me). What is the growth potential of NTES? When do its games become unpopular? Who can say? I don't really understand its business. What is the growth potential of UBNT? Will UBNT hit a wall? -- how large is UBNT's market? I'm not really understanding what its potential future is or what its business is. However, for me, if profit margins and revenue gains are sustainable for another year/maybe two (i.e. the businesses continue to grow/expand) -- stocks should do better from here. There just aren't that many companies growing revenue and profits as quickly and as greatly as these two (and FB and a few others). They just seem to be piling up the cash as well. I'll start a position in UBNT next week. In holding more than one of these type companies, I believe I increase my chances that there'll be a winner among the bunch.