I know Michael an I have discussed this privately for quite sometime, but check out the chart on LEAP during the year leading up to the AT&T bid. Eerily similar and the final 2 weeks prior to the Monday morning $10 spike on the official announcement was predicated by this exact same unexplained run-up with no news and high volume. If anybody CANT keep a secret its gotta be these guys in Utah. We have seen it in the past on the downside prior to earnings misses, are we seeing it now on the upside in front of a major positive event?
Charles, I appreciate you guys keeping up with the drama on this stock. I checked the chart on LEAP.....yeah....very eeeerie. And yes, this latest buying surge could be a prelude to a major positive event. For me that would be a bonus. Because even if it is not what you think it might be........a sign of strength, like the one Friday, after a long trading range is a clear signal it should go much higher.
The big operators are fully loaded and Friday was the signal they will not stand in the way of moving it up and out. The big operators themselves may be brokerage houses and / or they may have leaked to select brokerage houses saying that they are ready to move it out So, these houses work the phones and call their most favored clients and line up buys and boom....Friday morning's action.
The trading range started on March 8th and is defined by that low at $5.06 and the subsequent dead-cat-bounce on March 19th at $5.84. This Friday the low was $5.85. How cool is that? That they defended that line? Gotta love this game. So, the high Friday was $6.39 and the close $6.28; a high-range-close on huge volume. Awesome. Now that 5.84 could get tested again but who in their right mind wouldn't just buy the open on Monday?
Not only did they blast it out of the trading range, but thru the 200-day MA. A lot of scanners will eyeball that. But when the news comes out, then we should see more action.
only thing i can see on news is interactive gaming/grand theft auto version 5 surpassed a record sales on there new game release. was on good morning america this morning the sales were billion dollars in the first 3 days and there has been no release yet in japan or brazil. not sure how much asrto has in this segment but i think it must be big.
release of grand theft auto surpassed 1 billion in sales in just 3 days. record for entertainment industry.
still not released in brazil or china yet.
this has to be the reason for the pop as gaming is more alive than previously thought. people slept outside the stores for the release. astro will be big beneficiary.
TTWO (Take two interactive the game developer) and GME (Game Stop) both took it on the chin Friday with Aprox 3 and 5% LOSSES (Sony was also down significantly) I had the same thought about the Grand Theft Auto release relating to SKUL. Although WHY out of the blue would that be factored in so late to the party when the likes of GME and TTWO have it already built in and everyone suffers a blow despite the news?
APPL has been on a run since the release of the iPhone 5S and 5c, but SKUL has never been tied into the stock (per say).
SKUL has run with ZAGG in the past (at times), but ZAGG has been a dud lately as well.
Has to be internal news that leaked at SKUL IMO
The reason for 1.8 million shares traded is a video game that has been announced for 6 months? No way. I am not saying a buyout is coming ... but now you are just grasping at straws... maybe charlie sheen called up someone and said blue horseshoe loves skullcandy?
Turtle - I agree. I am pretty confident that SKUL is going to hit a home run with their gaming headsets (and other related releases?) for the holiday season. Two major gaming systems are being released for Christmas and there will be headphone buying to go along with that. SKUL seams to have made significant inroads into the gaming headphone sector.
But... That is no reason for a 1.8 million share day (out of the blue on no news).
Hopefully, Monday the picture will become clearer....
Maybe there is no specific reason for the SOS to have occurred on Friday, other than the liquidity to get the job done was available. After all, the market was a sea of red on Friday. The brokerage houses, the big operators, whoever and whatever you want to call the guys with the availability to large capital, are ready to move it out......and they want to make a big profit....they have to....that's their business....Manhattan rent is not cheap.
To me, to them in fact, it doesn't really matter what the news is, as long as it provides the public an excuse to buy. But no doubt they will need news to get over the $7 level. So I agree something is coming.....it is not something that has already happened imo; a complete surprise; a door buster is in the works.
To clear up the point I was trying to make.......Friday's action was nothing compared to what is coming.....when they do use the news and get the general public involved.
Think about what just happened.....a 7.35% surge out of a 7-month trading range on HUGE volume......and without a whisper of news.
They didn't need any news to do what they did. This is scary bullish......one bad (_)_) bull is raging. I'm not asking too many questions, sometimes it's enough to know that there is demand for Skull Candy's stock.
OP I'm surprised that there is so little chatter on the board. Perhaps everyone is in shock! Technically what is your next price level(s) and at what volume for the stock (up and down). The usual OP synopsis... Just curious..
Michael, no chatter on this board because there's not any news....yet. The general public has to have news. They haven't been invited to the party yet.
So let's review what's happened. The Selling Climax occurred on March 8th to a low of 5.06. This was the first step in ending the downtrend. Then we had a dead-cat bounce to 5.84 on March 19th. So this was my first guess to define the "creek" (5.84) and "ice" (5.06). Then we had a "spring" below 5.06 to 4.80 but could not take it lower, so 5.06 confirmed as ice. Also, 4.80 was the low and the reaction before the low was 5.84. So, that confirmed then that 5.84 was the creek.
So then it went into the process of building cause / accumulation. There were two upthrusts above the creek and one other spring. Then this Friday there was a sign of strength....wide price-range bar on volume that stands out on the chart. Not only was it an SOS but it was also a "Jump over the Creek". It jumped over 5.84. (It also jumped over and held the upthrust highs). This bar on Friday, an SOS bar, is a bar that should be bought, period. The SOS confirmed that SKUL was under accumulation for the past 7 months.
Can it go back and test the creek? Yes. But it is very unlikely it will take it out. So if it does test the 5.84 area and the volume is lighter than Friday's volume, it's a buy. Remember, it built cause for 7 months, that's important. The longer the cause the longer it can sustain the uptrend. So a move back up to $12 creek is probable in my estimation. Near term it is going to run up against March 7th, the $7 area. It will then need to build some cause. That is where news will need to come into play I think. That is where the public will be invited I expect.
Thanks OP. Glad your back on board. Be interesting to se if ANY news is released. They have 1 week to announce a CFO or an internal temp replacement. Not sure if Ron Ross (Stop Gap CFO between Mitch and Kyle) is still employed, I thought he left the company? Tick Tock.... Considering Hoby stated they were actively interviewing replacements during the last earnings call. (I'm stirring the pot).... Considering the compensation packages Skullcandy offers and the culture there, you would think they would have snagged a young up and coming MBA CPA wiz kid by now (skate and snowboard included in the package)!!! :)
Maybe they will use the Toys R Us gaming deal to really rocket the stock? Big party in Times Square this Friday but it still hasn't been publicly announced. Its news and good news and will drive revenues, but nothing game changing but of course this could be used as a catalyst if the boys expect a PR for this to be released this week.
Skullcandy released their Smokin Buds'2 which is the new version of the original Smokin Buds.
Does anybody know the actual release date of the Smokin Buds'2 ? Was it today?
What does the packaging look like?
If you do not know the answer please do not try and guess.
Sentiment: Strong Buy
I found the answer on the Skullcandy facebook page.
The Smokin buds'2 came out last Thursday, Sept 19. On Friday, Sept 20th the stock goes through the roof.
I am still curious to see the packaging though. I don't think they have hit stores yet though.
Sentiment: Strong Buy
This weekend Apple released they set a new Iphone sale record. The new Iphone 5s/c sold 9 million units compared to the Iphone's 5 million. Sales have surpassed analyst expectations and Apple said they are already low on inventory.
They released the phone in China which is an important market for Skullcandy. The Skullcandy headsets are designed to be used for smartphones, although they will work with anything, the more people with smart phones the bigger the market for Skullcandy.
The new Iphone 5s/c is a huge plus for Skullcandy headphones, NOT BEATS BY DRE. The Iphone5c is a cheaper version of the Iphone 5. This is a good product for college kids who need a smart phone but dont want to spend all they got. If you are looking to buy a cheap smart phone it is likely you are not going to go buy the most expensive brand of headphones, BEATS BY DRE, for $100-$350.
Apple has sold 9 million Iphone 5s/c's so far. Lets assume theres a 12% capture ratio, meaning for everyone who buys a smartphone will buy a headphone to go with it. Then lets assume Skullcandy has 10% of this market. Thats 108,000 units sold for Skullcandy. Multiply an average selling price between $20 - $30 and that results in $2MM-$3MM is revenue for Skullcandy or about 1% of their revenue for the year. Now that doesn't sound like much but the Iphone 5s/c has only been out for a week. Plenty of time to go.
Sentiment: Strong Buy
This is positive sign for Skullcandys inventory. We know from their recent earnings reports that they have had a problem with too much inventory on their books. Skullcandy doesnt publish official release dates for their headphones. They wait till they sell most of the inventory of the old product, then release the new version. The old stuff that doesnt sell might be passed down to TJ Maxxs.
Good sign SKullcandy is pushing inventory.
Sentiment: Strong Buy