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Skullcandy, Inc. (SKUL) Message Board

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  • go_ahead_make_my_bed go_ahead_make_my_bed Nov 24, 2012 12:19 PM Flag

    Perhaps no bottom, because Management does not believe

    In an earlier post I described what I think is the key way it lowers price. It forces there to be more shares held long. Therefore, you need "more believers" willing to step up. This is a potential drag on the stock price.

    Here's the kicker. I believe that a new paradigm has emerged, where short sellers simply identify anything they think is "faddish" or "unsustainable" and will build and hold a short position much longer than one typically would. This is because there have in fact been quite a few companies that have gone public that fit this mold. They want the scenario to play out and are "unafraid" of other shorts stealing their profits. Groupon could be a great example. Under the "old paradigm" one would be more likely to cover and lock in profits, thus creating a counter balance. With the new way of thinking, shorting can potentially weigh much heavier on a stock once negative sentiment kicks in. Without a doubt if SKUL can truly disprove the non-believers a short squeeze will happen eventually. But it is really hard to scare the shorts as we have seen.

11.13-0.0300(-0.27%)Apr 24 4:00 PMEDT