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Skullcandy, Inc. (SKUL) Message Board

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  • coreylynnh@sbcglobal.net coreylynnh Dec 14, 2012 9:47 AM Flag

    IPO's at $20, bumps up 15% 1st day to $23. Crashes below $8 1 1/2 years later. WOW!!!

    tradingexpert: If you are looking at these stocks only for a quick gain and a short squeeze then be careful. If you invest be prepared to be in it long term, can stomach some dramatic drops, and only because you believe they can sustain their brand and growth. The shorts have control only because most investors look at this stock and fundamentals exactly as you did and with the mentality they will make a quick buck. Then if the shorts make the stock tumble those investors bolt further tumbling the stock and allowing the shorts to cover easily. I also have reason to believe the shorts are covering their positions through options so they are not terribly concerned over a large stock appreciation.

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    • Wise words, thanks for your comments Corey. I tried to reply to your posts yesterday but posts just kept disappearing (I'm not the only one having these issues am I?!)

      I agree that a short squeeze shouldn't be the main reason to invest your hard earned here. It should be an 'O' in a SWOT analysis, but I see other more fundamental reasons for buying in. Perhaps you're right about holding this stock being a bad idea (I'm not experienced enough for options trading) but I do think the company can profit long term in this market though.

      Main reasons I invested are - Continual revenue growth. Growth of overal market for headphone accessories.Strong brand awareness and established place in that market. Investment in new regions (Europe) which should pay dividends in time. Attractive valuation multiples. Company carries virtually no debt.

      I also agree that the board would be wise to do something to recognise the currently under valued SP, by dividend/share buy back, cancellation of automatic director sales. I wrote to SKUL investor relations with some questions in this regard abour 3 weeks ago but have never heard anyhing back which doesn't make me feel any better.

      Sentiment is against this stock right now, shorts in control. Long term I see value winning out, and at c.$8 I see a lot more upside than downside from here. BUT If growth starts to slow significantly then I'll get out. Don't invest what you can't afford to lose, not a stock for the faint hearted!

      Sentiment: Buy

    • This board's driving me nuts, posts keep disappearing. Tried yesterday and today to post this, let's try again.

      Wise words, thanks for your comments Corey. I agree that a short squeeze shouldn't be the main reason to invest your hard earned here. It should be an 'O' in a SWOT analysis, but I see other more fundamental reasons for buying in. Perhaps you're right about holding this stock being a bad idea (I'm not experienced enough for options trading) but I do think the company can profit long term in this market though.

      Main reasons I invested are - Continual revenue growth. Growth of overal market for headphone accessories.Strong brand awareness and established place in that market. Investment in new regions (Europe) which should pay dividends in time. Attractive valuation multiples. Company carries virtually no debt.

      Sentiment is against this stock right now, shorts in control. Long term I see value winning out and at $8 much more upside than downside here IMHO. BUT If growth starts to slow significantly then I'll get out.

    • Anyone else find the Yahoo boards unreliable and a bit complicated to navigate? Tried posting this yesterday another one of your posts but relevant here too. Let's see if this works today.....

      Wise words, thanks for your comments Corey. I agree that a short squeeze shouldn't be the main reason to invest your hard earned here. It should be an 'O' in a SWOT analysis, but I see other more fundamental reasons for buying in. Perhaps you're right about holding this stock being a bad idea (I'm not experienced enough for options trading) but I do think the company can profit long term in this market though.

      Main reasons I invested are - Continual revenue growth. Growth of overal market for headphone accessories.Strong brand awareness and established place in that market. Investment in new regions (Europe) which should pay dividends in time. Attractive valuation multiples. Company carries virtually no debt.

      Sentiment is against this stock right now, shorts in control. Long term I see value winning out and at $8 more upside than downside here IMHO. BUT If growth starts to slow significantly then I'll get out.

      Sentiment: Buy

    • Bingo on the quick buck theory.... This stock needs some long position accumulation... There still is a boat load of shorted shares out there. As far as insiders go... There has been no big sell bomb by insiders lately. I still hold my theory that Andrus has an automatic sell program going as part of his compensation (and the fact that his first 2 years out of Harvard with his MBA he lived in his parents basement and took no salary working for SKUL, just stock options. He is just selling some share to compensate). Andrus still holds a boat load of stock. The Directors selling is a non issue as they are pulling money out as planned. There was an insider buy lately.

      As far as options go... It was big news a month or so ago (based on volume) and a few writers jumped on it. Unfortunate that the direction of the stock has been downward.

      Sentiment: Strong Buy

      • 3 Replies to michaelsistowicz
      • Don't forget about the big salaries,

        Mr. Jeremy Andrus ,311.00K
        Mr. Rick Alden , 174.00K
        Mr. Aaron Behle ,247.00K
        Richard Sargente , 218.00K

        Unfortunately, the stock is not doing well. I have good amount of shares and I lost money (too me is a lot of money). I lost my confidence for this company. The managements are the problem at this time. They made few bad choices: 1. big inventory. 2. Big salaries. 3. Sold their shares at very high rate in few months.

        I will use my shares and sell January calls to protect myself and bring money into my account. It won’t be good for stock to go lower and people start to short it again. We will see.

      • ponzi ....

      • coreylynnh@sbcglobal.net coreylynnh Dec 14, 2012 2:04 PM Flag

        If he has an automatic sell program he is then either ignoring his shareholders or oblivious to the problems with this stock. He is choosing personal compensation over stock health and that is not good for stock appreciation. It is his right of course so I am not blaming him, but it is something to consider if you are invested in this stock.

        As far as options, what articles are you talking about when you say it was big news a month or so ago? I am not familiar with the articles you are talking about. This December expiration reverse conversion had been sitting out there at least since August. It is what drew me to this stock at that time. With that option strategy available one of the legs is a short sale. If you can sell a stock short and lock in a profit no matter where the stock goes most people would jump on it. What this means is that the derivatives were potentially controlling a large part of the downward stock price movement and therefore throw out technicals and fundamentals. Back in August the open interest in the December expiration was very high as well and I wish I had printed it out. I know there is a way to check prices of options in the past, I just don't know how to do that and haven't looked into it. It is likely people have been using this strategy for a long time. When the December expiration is gone it is likely the short selling may also taper off considerably, or already has. It will be interesting to see if a significant number of short positions will be covered by 12/31 to see if this December expiration resulted in a lot more covered short positions through an option strategy. The only problem is that the freed up money after this December expiration may result in further shorting.

 

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