Has anyone else heard the rumor that Tim Cook is toying with the idea of buying out skulllcandy??
I find this a little hard to believe but it makes sense on a couple of different levels. Apple is already selling skullcandy products in their stores and they could probably acquire it "cheap"
I don't think Apple is buying Skullcandy. Have you gone recently to Apple store? The store carry different brands of headphone. They have few Skullcandy in their shelves in the boxes. None was out for the customer to listen to the music. I talked to few sales representative and they didn't have knowledge of the products.
When I went into the apple store when I bought my navigators a month ago (the apple store exclusive) the lady had no idea what I was even talking about and I had to find them on my own - pretty sweet exclusive - HA!
I was in skul from 13-16 sold, bought again at 13 and sold after earnings for 10.80 and watched it
Fall to 8. I also own aapl, but I don't think there is any way aapl would buy skul. It's not earning any serious money that would interest aapl and will never get big enough to add any value to aapl. If there was a potential buyer it would be Vizio. The new CFO left Vizio to come to skul and with them being private it would take the pressure off this company and allow them to focus on making and marketing headphones. Also any buyout is a long shot. The reason this stock tanked so much is because the original creator Rick Alden helped take the company public, but shortly after the ipo announced he would no longer work for skullcandy and they named the current CEO at that time. The new CEO and Alden were selling tons of shares from 14 all the way down, it's listed on the sec docs. It appears they have stopped selling for now, but that was enough to scare out most investors in skul. This management selling as well as the original short argument that headphones are a commodity and the excessive salaries and extremely laid back work environment at skul headquarters (see Bloomberg video) is too much for this stock to handle. The best we can hope for is a buyout or a huge upside sales surprise. Keep in mind that if the price goes to 14 again you can assume more management sales and like always the small at home investor gets screwed.
At 8-8.50 this stock is a good buy, but I wouldn't get greedy and would sell over 12.
Please check your facts. The CEO sold stock at the IPO and had one sale of 40K shares for 13.80 (he still owns more than a million shares). Rick Alden sold about 100 K shares, but he still owns a few million. The same Rick Alden bought shares at 14.40 on the market. back in May. So there are many reasons to sell stock, but the reason the stock is down is not that CEO and founder sold It all started with an analyst from JP Morgan downgrading the stock because of Apple's new earbuds, but Skullcandy's target market won't stick with plain white buds. Also the market is shifting to overhead phones - which management aknowledge back in the second quarter. Skullcandy has a sweet spot in terms of price (it is not dirty cheap often breakable phones) nor crazy expensive fashionable (Beats) and they will continue to sell well.