Today's drop can be attributed to Cramer stating his "sell" Skullcandy yesterday. The good news is that Cramer knows nothing about SKUL's fundamentals and his only negative was "I don't like its niche." He will turn out to be dead wrong on this one.
The baffling thing is he likes the 50 PE LULU... Fad and crowded niche poster child! and as he says"anyone can make headphones". I have some spandex shorts I can sell him I "made in my garage" if he wants it!
Frustrating when he is always saying how stocks don't move on fundamentals and they should... then he puts on a headband and promotes 50 PE stock like LULU? Do your homework Cramer! As you tell Cramarica.
" "This company could face too much competition in the future" He just doesn't like its niche "
This is an opinion based on 'long term' prospects which is hardly an intelligent assumption. It's about as idiotic as saying IBM, Microsoft or DELL would never make it because of competition.
SKULLCandy does have unique product lines and partnertships.
Management is fully aware of the upcoming quarter as being a 'pivot point' for the make or break of it's stock. There is no doubt in my mind that they will comply with the upcoming quarters earnings that will surpass expectations. This will bring the pricing back into it's normal range or higher with the premium of short covering.