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Skullcandy, Inc. Message Board

  • geebee44 geebee44 Jan 3, 2013 9:56 AM Flag

    Skull Earnings Due 2-18

    The earnings will tell the tale of Skull. The earnings have been good, a bad report has already been baked in. Should see some emphasis already placed on global sales in discussion, these guys do well
    in that regard. The short selling will start to drop towards Feb 18, and buyers will raise price the price since there will be more upside than down. (downside $6 and upside probably $12) This company continues to grow their revenue and market as well as profits. More imporotantly will be their quarter discussion. The talk of competition is an old short seller one, like McDonalds doesn't have Wendys and Burger King? Ford? Chevy? Toyota? Growth is the tale, listen to the CEO's view of their next market
    targets and also higher end products. Koss would be smart to buy them now to fill out their line and get new demographic buyers.

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    • Koss market cap is only 36 million and run by the Koss family as it has been since the 70's (that I remember). If anything, SKUL is setting up for a private equity play or some merger with a clothing (read lifestyle) company. Perhaps a Ski/surf/skate manufacturer as this is the markets of Skullcandy's roots. Wescoat the CFO is in here to sell/merge or go private. That is his thing and he came out of retirement (basically) packed up his bags and moved to Park City... It is just a mater of time... I would suspect we will know something between now and the earnings call on the direction or at least the analysts will drill Andrus and Wescoat on the subject during the Q&A. I would also bet that Andrus and Wescoat will get hammered on their "future plans" to handle press and shareholder relations (if not, they should)...

      Sentiment: Strong Buy

      • 1 Reply to michaelsistowicz
      • You mention a business combination that never crossed my mind for Skul....a lifestyle company. Another headphone company never made sense to me. But say a large established lifestyle company...like Nike? If I was Nike why wouldn't I want Skullcandy and their products? A $50 bil company absorbing Skul would be a non event.

        A Nike type company already has a distribution model in place and some of the same athletes, so they could acquire Skul and eliminate many of the G&A costs via synergies. Maybe some positve impact to margins, and sales would increase and expenses would decrease. Nike is already teamed up with Astro gaming. I think Nike could easily raise profits of Skullcandy by 500% almost immediately.

        Not trying to reach for the stars as a long investor, but why doesn't such a business combination make sense for a Nike, Addidas or an Under Armour. I read where Addidas has made a stab at creating a headphone already. Why not purchase an established brand?

 
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