This looks like a really strong appointment to the CFO role for Skullcandy. Lot's of experience with brand focused companies and most recently CFO of Vizio. i also like the private equity background, they may want to take Skul private if it remains to cheap something the shorts may have a problem with.
I am a high level finance person for a Fortune 500 company. I would assume Skul has its books in order and in capable hands of existing bean counters (if not, it's got much bigger issues), so this guy was not brought in for his accounting skills. Plus, there is nothing difficult accounting wise about Skul's business. This guy is on board to add value to the company and its stakeholders (most importantly the 35% insider portion).
What his/their plans are to add value, who knows, but I assure you the 35% holders have the last word. A private equity purchase is certainly a possibility as it would probably just be a 65% purchase of the company.That's really not much money even at $20 a share. And I feel confident the insider 35% would also get some stake in the new structure.
So as a stock investor who thinks this company has growth, we would be the ones missing out/losing on a private equity purchase. Our shares are bought relatively cheap and the purchasers get the appreciation and start paying themselves a fat dividend. And I'm sure the 35% would participate in future growth/ownership. Initially appealing, I'm not sure a buyout with this structure puts much money in our pockets. Individual investors generally get the shaft.
Skul went public for the cash so as to expand. Mission accomplished. Mgmnt truly loves this business and doing their jobs, and I believe they consider being a public company expensive and a headache (and it totally is).So if some investors totally believe in this compay, it would be no problem to gather up $300 -350 mil to essentially buy 65% of this company. And these lower stock prices certainly make it doable as the 35% holders don't care as much what it would sell for now as long as they were included in the new structure.
Totally overlooked news today. 60 year old, pretty much retired success story (took Vans from an ordinary shoe company to an insane growth story) who lives comfortably in Huntington Beach, being uprooted out of the blue to a supposed 'fledging' headphone maker that the public has as a 'fail'. This is a pretty wealthy guy, living the good life, you can bet he's not leaving so he can CFO for the next 5 years. Something is in the works here. I added right at the close.
agree, something's up. Private Equity would love this growth and return. It's so cheap and with interest rates this low thee's not many options out there for a return. I'm expecting some insider buys in the near future. Will add more tommorrow,