Im not jumping on any band wagon here due to the Inflection Article, frankly i hope Skull crushes the negative sentiment and comes out with stellar numbers. Its the type of company(small growth) that interests me. Over the years I feel i have learned a few things about stocks and the stock market.
The Facts - it is what it is, there is no getting around it
1) i see insiders selling not buying and people don't leave companies that can make them money
2) how are they differentiating, if colour is a differentiator, can colour be a differentiator, they have no protection on this.
3) competition, i looked into the competition, its hard to believe the number of players in this space
1) Totally agree and I don't understand. Although a significant portion of their comp is in stock so maybe they need to monetize and diversify occassionally?
2) Good question. Headphones are an accessory like shoes, hats and purses. Different styles and colors plus marketing. It is trendy so Skull needs to keep delivering desirable products. If they lose favor with their core audience they're done. So far so good.
3) Lots of competition. Players will come and go, but am impressed with their focus on a core demographic. Headphones are a relatively new fad and many want a piece of the market. Envisioning Skull as a Nike, Monster Energy or Sony/Playstation whereby they are a top two/three player in their market.