|Capitulation Phase||Advanced Arbitrage LLC||6/7/12 12:57 PM|
The negativity of media coverage right now is slanted to about 90%
negative PRs compared to 10% of stories that are positive. UBNT has
now dropped ~150% from it's May 01, 2012 high of $35/share & with
today's unusually massive volume of over 1.5 million shares succumbing
to the rash of bad press...the bottom may be forming.
The damage from the cumulative negative coverage and fallout from the
Miami civil action was more extensive than most market participants
realized. We believe this capitulation phase will be short-lived, but
be forewarned that this volatile security isn't for the faint of
May 21, 2012 vis-a-vis Forbes:
"Ubiquiti filed suit in the U.S. District Court for Northern
California against Kozumi USA Corp., a previously terminated Ubiquiti
distributor, its owner Shao Wei Hsu and his spouse Lilia Kung. The
complaint says Hsu engaged in intellectual property theft,
manufacturing and sale of counterfeit Ubiquiti Networks products."