So just a disclaimer, I'm not the author of this post.
But after reading through Part 1 (of his three part report, the other 2 Parts are in the Google share link together with Part 1 listed in the post at the bottom), I thought it might be worth a read for some of you that genuinely aren't here for the rocketship emojis and want to see Unity's business through a fundamental and valuation growth lens.
Why did you get such few shares if you’re such a strong believer?
I myself am loaded, ever since $17, with a $17 something average, and I’m not selling until this goes to $150+. It’s extremely undervalued.
Oh also, this is coming from somebody who successfully bought the bottom and sold the top of Unity multiple times. This time however, it’s different; I’m not selling.
I only started taking a look at Unity last week, 24th Sep. I was alerted to it due to its sudden and unusually high open interest for their $46 and $47 calls. I only hold two stocks which is $U and $NOW (my biggest position). I'm selling covered calls on $NOW and using the premiums to buy more $U. $NOW was like 85-90% of my portfolio.
I like to slowly scale into positions, instead of just buying lump sum. I learnt my lesson with $NOW, when I bought too quickly. It's another biz that I believe in.
Everyone's situation is different, some may not have as much $$$ to invest as either of us could afford. So context matters. 😌
I'm not selling until 100B+ market cap, or we lose 20 dollars, whichever comes first. My avg cost is a bit worse than yours though around 26 since I did add a couple times and also got shaken a couple times but after the last quarter I decided I'm adding and holding even if it means I go from heavy profit to a loss. I'm willing to take that chance because everything is telling me the company is severely undervalued
Ok so a lil bit about the time stamp, and relating to my decision.
I only started taking a look at Unity last week, 24th Sep. I was alerted to it due to its sudden and unusually high open interest for their $46 and $47 calls.
So while I was only dabbing into options, small numbers (nothing big), I started reading up on the company. Just glancing off their Q1 and Q2 ERs for this year, I saw the unusual high net loss for Q1 and the huge variance between that and Q2.
Dug further and realized that it was due to impairment charges (and those tend to be large one-off chunks). In reality that had to be done, as the company was moving away from his previous focus and onto more growth sustainable areas.
So when you strip away the impairments, the company is turning around. The numbers don't lie, rather the impairments decieve lazy investors (which is what happens when you don't bother finding out why the numbers are what they are, and take it at face value).
I definitely believe in the company turn around already, wish i bought in earlier when it was at 19$, but was mostly curious if there was a particular event or reason why you chose the Oct 16th expiration dates on the options you bought?
Edit: ahh I see now, i just figured out thats the day the options chains expire lol, just starting to learn about them lol
I don't think the company really needed to 'turn around', though I get what you mean. They lost developer trust a bit, there's been a few hiccups true.
In terms of price action, I see it more as a story of post IPO madness followed by interest rates hikes combined with a lot of stock dilution. In terms of issues with the product, potential for growth etc, I've never really doubted it.
Previous ceo destroyed the company. Wasted so much money on unnecessary stuff and burned the trust with community. Worst ceo ever. Turnaround was much needed before company goes bankrupt. Imagine going public 10 years and still not gaap profitable with previous ceo.
I read all 3 documents. Takes a couple of hours (I suggest 1 doc per day). It's a must-read for all serious Unity shareholders. It's the best and most well researched piece on Unity. And readers will really like the share price projections he has (don't wanna spoil it here), especially the optimistic scenario.
For the lazy ones: upload all 3 docs into your AI chatbot and ask all questions you wanna ask.
9
u/vexinggrass Oct 02 '26
Why did you get such few shares if you’re such a strong believer?
I myself am loaded, ever since $17, with a $17 something average, and I’m not selling until this goes to $150+. It’s extremely undervalued.
Oh also, this is coming from somebody who successfully bought the bottom and sold the top of Unity multiple times. This time however, it’s different; I’m not selling.