Skul beats EPS by a couple pennies and keeps or inches up the 2013 guideance? Do the analysts keep hurling the insults? Probably nothing changes and Skul has to keep growing to prove otherwise. Mgmt will acknowledge margin pressures and competition, but its sales are growing to offset margin losses....at least I think thats their vision.
As an investor seeking an unbiased opinion I continue to do my own research. I randomly called 5 Targets and spoke to the Electronics dept indicating I was interested in purchasing ear buds and headphones and wanted to know what was good and popular. Beats was always the most popular over the ear. I followed up asking what was next in popularity. All said Skullcandy and some also said Sony (I actually find Sony to be one of my least favorites). I never heard about another company.
I also asked about ear buds and if they were still popular. Answer was yes and they thought interest was about 50/50 between over the ear and buds. When I asked about the most popular buds, four of the five said Skullcandy and other said Beats and Sony.....and because it was $100. I asked him about recommending cheaper ones and he said Skullcandy. And by the way, Skull has and was not on sale.
Only a small sampling, but wanted to understand for myself. Not trying to say I know more than these analysts, but I just get the feeling they're too far removed from this "fad and market". I'm not a day or month trader and am willing to wait out the manipulation if the company has potential....which I think Skull has.
Trust me, I wish Skul had the buzz that Beats has...this would easily be a $100 stock if so. Dre is estimated to make $100 mil himself in 2012 because of the headphones. But despite the competition, I do think Skul is a #2 player and it's ear bud niche still remains while it holds its own as a serious player in the over the ear. Check out Marleys, Soul, Monster on Amazon.....all on sale.
Not sure how or why Beats caught fire and is the fad now. But it did and is now. As a trend and fad product and market, who's to say Skul (or other company) won't be the next for whatever reason. Not trying to daydream and be unrealistic, but if you stay competitive, offer a quality product and continue the marketing campain, they may hit gold. Fads come and go quickly and for reasons we can never anticipate. But you got to be in the game and be a player.
Better days (years probably) to come....be patient if you're long. Autos, shoes, purses or whatever....there's always competition. So not sure why headphones is different. As long as Skul is one of the top players.
Thanks for the research. I too am long this stock, though I admit when I got in I was making a play on looking at were the stock sits after 2012 year end earnings in February.
The downgrade was so ambiguous. It ended with "we expect growth in the teens for 2013". I also believe that the gaming sector will give a boost to this company. They will release the PLYR 1 this spring (I would bet they are holding that for an ace in the hole during the EC)
However, My stomach is rumbling and I kicked the dog a few times today (just kidding) as there seems to be a lot of manipulation and info leaks / collusion going on with this stock. Hopefully we will see management coming through with strong full year results.