If you read carefully through the SEC Filings you will notice a new joint venture for expansion into Mexico as well as the accelleration of growth in international markets. If you hold SKUL and wondered why wait until the next earnings report and they blow the numbers wide open with new growth and revenue's from emerging markets :) Happy New Year to SKUL longs. Holding 51,000 shares
Now selling at 7.5 times forecast 2012 earnings, SKUL is either a screaming buy, or headed for Wall Street's cemetery. International expansion may be a key element in the answer. Let's watch insider transactions carefully from now on. These guys know the probable outcome. We don't.
Another 20k shares sold by the CEO last week. Not sure why he continues, especially at these prices. Everything about this stock and company is perplexing. 2012 sales will be close to $70 mil greater than 2011, yet the EPS will be the same because of rising G&A expenses.
I guess the positive take is the (financial) committment to growth, building the brand and fighting off the massive headphone competitors. They could have sat on their hands and scaled back the marketing campaign and generated a much higher EPS for 2012 and 2013. Stock price would probably be around 20 as everyone would be happy with the EPS growth. I'd like to think mgmnt is focused on the long term success of the company.
So I think mgmnt has the right vision, but sure is difficult lately as a shareholder. Numbers will be fine in February. I'm most interested in hearing more of their long term strategy/vision and thoughts on increasing shareholder value.