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Skullcandy, Inc. Message Board

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  • eshuke1981 eshuke1981 Dec 12, 2012 2:35 PM Flag

    Short Interest

    the days to cover are 12.9 what does that exactly mean...Alot of times i see 4.9 days to cover but nothing is covered in 5 days ..

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    • coreylynnh@sbcglobal.net coreylynnh Dec 13, 2012 12:41 PM Flag

      I wrote a reply but I am not sure why I don't see it posted. So I will make one again.

      The days to cover don't mean a hill of beans unless there is a short squeeze. If there is a short squeeze then days to cover could be an indicator as to how high the stock may go, but that is difficult to calculate because there are a lot of other unknown variables that will dictate the squeezed price. The problem I see is that too many investors on this message board and in general seem to be invested in SKUL for the short squeeze and a short term gain. This is why the short sellers win the battles. The new investors come in and when the price is driven down, perhaps by a shot of short selling, they bolt because they don't understand what happened, didn't get their big short term gain, or both. This leads to a "long squeeze", the short sellers can cover with little problem, and the cycle happens again at some point. If you are invested in SKUL for a short squeeze then you are wasting your time and probably money because you will likely do a panic sell when the price plummets. If the short squeeze happens then gravy, but you should be invested in this stock only because you believe they have a brand that will stick and believe they are a growth story that will continue. If you are investing for any other reason then find somewhere else to invest because you will likely lose money.

      • 6 Replies to coreylynnh
      • Corey

        Totally agree... as one of the few guys left on this board that didn't "jump ship" and I still hold a large stake in the company (not 100 not 1000 not 10,000 shares). Problem I see with this stock is that everyone was all "short squeeze a coming" and when the stock started to drop, they bailed. That is their right of course... But, what they did was to allow the shorts to pick up shares on the way down... kinda stupid if you ask me as the mass's went into panic mood. The comment I hear over and over on the board is "Institutions are selling" and bye bye to the stock. Buy and hold as you said if you believe in the stock and brand... I do as the stock is way undervalued in my opinion. Plus, the day traders are all into this stock... That equates to shares available to short...

        Spoke my peace...

        Sentiment: Strong Buy

      • Your post probably disappeared because the twits at Yahoo don't seem to know how to organise a message board/party in a brewery. If any administrators are reading then sort it out please, or people will stop using the boards altogether. Too much hassle spending time posting for it to just disappear. I'm pretty sure I'm not the only one experiencing lots of issues here.

      • Will try a third time. Maybe I offended Yahoo last time round, as my post seems to have disappeared again.

        Thanks for your comments Corey, nice to see some logic and reasoning here so stick around :) I'd agree that a short squeeze should be identified as an opportunity in any SWOT analysis before investing, but it definitely should be the main reason for investing.

        Main reasons I invested? Continued, consistently increasing revenue. Massive growth in overall market for headphone accessories. Attractive valuation multiples. Strong brand awareness. Growth and investment in new regions (Europe). Virtually no debt.

      • Wise words, thanks for your input Corey. Short squeeze should be an 'O' on any SWOT analysis, but not the main reason for investing here. Sustained revenue growth, low valuation multiples, strong brand awareness, HUGE growth in overall market for headphone accessories and a company that carries virtually zero debt. These were some of my reasons for investing here.

        Sentiment: Buy

      • Posted a response earlier but seeing as Yahoo can't organise a pish up in a brewery it's disappeared. Anyway.....

        Wise words Corey, thanks for your thoughts. I'd agree that while a short squeeze should be in the 'O' of any SWOT anaysis, it shouldn't be the main reason you invest your hard earned here. There are other fundamental reasons to believe that the stock price can rebound strongly from here.

        Massive growth in the overal market for headphone accessories, consistent, continual increase in revenues, strong brand awareness, attractive valuation multiples, investment/growth in new regions (Europe), from a company with virtually no debt. These are some of the main reasons why I'm invested here.

        Sentiment: Buy

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    • It's just taking the average daily volume and dividing the short interest bu it. The average daily volume fluctuates of course. It is a theoretical number based on IF every share was traded to cover (which of course it is not)....

      Sentiment: Strong Buy

 
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