A negative miss has already been factored into the stock price. Think about it, this stock has already been punished for Google's miss and is already priced to follow the leader. This stock has also been a stellar financial performer and beat earnings estimates the last five quarters. Yet, is was not rewarded in the least, so why would it be punished if it misses one out of six?
Sentiment: Strong Buy
I don't think Skull can afford an earnings miss and the stock would be punished more. That being said, I don't believe they will miss and will reiterate their full year guidance. Honestly, the estimates are pretty low for a growing company (same as Q2) so a setback is not what they need in this ultra competitive headphone market. I want to see signs of continued growth and market share.
Despite the negative talk, the retail outlets I go to say Skullcandy is their top selling headphones, offering value in the mid to low pricepoints. And unlike the companies this is compared to from the past, it does not have an inflated P/E. Don't get driven out by fear tactics.
Sentiment: Buy
Why would it be punished if it misses one out of six. Well, for one, because the market is saying it isn't buying the economic growth story anymore. The spread between the SPX and the Nasdaq Composite is widening. The market is selling growth and sticking with the large cap names.
Romney gaining on Obama doesn't help. The market doesn't like change. Obama is a known; Romney is a mystery.
If Obama is a known, then tell me his plan going forward?
Sentiment: Strong Buy
OP it's not that easy. Pulling the "Presidential change is bad" page from the playbook doesn't work to scare investors. You and I both know Romney is more pro-business and more of an advocate to the market than our current President.
Sentiment: Strong Buy
OP it's not that easy. Pulling the "Presidential change is bad" page from the playbook doesn't work to scare investors. You and I both know Romney is more pro-business and more of an advocate to the market than our current President.
Sentiment: Strong Buy