Look out below. Hard to believe there is about to be no longs in the money on this stock. Jeffries reiterated its buy and 17 price target a month ago. They must have some knowledge/research about the holiday sales to drop the target from 17 to 6?. That change is very significant, and in my opinion essentially says this company is all but done. That price is a fraction above book value and a forward PE of 5.
What puzzles me is the overall feedback and sentiment from retailers and consumers regarding Skul. Strong sales, popular product and satisfied users, etc. Sales are increasing far greater than margin decreases, so I think this supports the popularity.What gives?
How can you possibly gauge Skul's future based on comments by Jefferies? How do you go from a strong buy with a price target of $22 to $17 to one of $6 in a few months. They work for the Street which is a hedge fund and I'm sure someone will be loading up or doing more short covering here. I don't trust the Street or anyone who works for them.