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Skullcandy, Inc. (SKUL) Message Board

  • tradingexpert4me tradingexpert4me Dec 13, 2012 7:03 PM Flag

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

    Spent some time here looking over the company along with that of ZAGG and I must say, both look oversold. Jury is still out on which one I like better, but I'm leaning towards SKUL, or perhaps starting positions in both. Risk vs Reward seems OK so far.

    Shorts appear to be the big winners in both companies, at least to this point. However, that could change quickly and in a very big way. One things for sure, I sure wouldn't start a short position at these levels in either company.

    RG

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    • Risk vs. Reward . . Exactly ! . . Every dog has its day and SKUL is due , besides there is really no money left to make on the short side . . So it's time to flip it and move this POS back up the channel . Buy low. Sell high.

      Sentiment: Strong Buy

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

      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.

      • 4 Replies to coreylynnh
      • 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

      • 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

    • Zagg just announced a share buy back program....nice gesture for the shareholders. Skull could learn a lesson.

      • 2 Replies to chaz16669
      • 1st of all....share buyback / dividend talk? with what cash?

        Secondly, read the terms of their credit facility. these 2 actions are explicitly prohibited in the current terms.

        Sentiment: Hold

      • coreylynnh@sbcglobal.net coreylynnh Dec 14, 2012 9:51 AM Flag

        Smart move by ZAGG and something SKUL can learn from indeed. SKUL management needs to do a better job of attracting longer term investors and a stock buy back program would be one of them. Providing even a small dividend would also help. Stop selling shares at the worst times and start buying them when the stock appears undervalued would also help. There are so many things they can do. So either they are ignoring their shareholders, oblivious to the problem of the price decline, or don't have confidence this growth story can continue and are banking their bucks while they can. The last one is of course the most concerning possibility.

 
SKUL
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