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Skullcandy, Inc. (SKUL) Message Board

  • lesspheus lesspheus Feb 5, 2013 1:53 PM Flag

    Seth's article states...

    "No buyback plan has currently been announced nor are we suggesting one will be announced, but the company has increased flexibility with its new credit facility terms. While many point to the terms of the enhanced credit facility as depicting a share buyback program, it is also plausible that the credit facility was enhanced in order to meet advancing distribution needs, to fill greater pipeline builds and to invest in new product development."

    What #$%$ is this? From the 8-K itself: "Amendment allows for the Company to buy back up to $28.0 million of its outstanding common stock." Friggen in balck and white and you even linked to it. The amendment is part of a contract and it is for exactly the contracted purpose, not something else you can dream up and put in your article. How do you call yourself an analyst?

    Sentiment: Strong Buy

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    • markjackson597@rocketmail.com markjackson597 Feb 5, 2013 3:54 PM Flag

      You need to calm the heck down! The agreement is just that, an agreement and at best it is an amended agreement. The agreement "allows for", it isn't "contracted for". In other words the company was granted permission, nothing more than that. It doesn't even mean they have to do it. They were simply granted the provisional clause to do so if they and the board desired to do so.

      I thought the article was great and very factual about today and the now. I believe Seth does feel the buyback will take place but he understands these terms of credit facility and why they are amended from time to time. I wouldn't want everyone buying the stock just because of a buyback and then it doesn't happen, especially when there are other possibilities. I don't think you thought about your post before you posted but I think the article is the most complete right now on Seeking Alpha so you should appreciate that.

      • 1 Reply to markjackson597
      • I know that it allows for the buyback. I posted it. The amendment is for the contracted purpose, nothing else. I never claimed that that meant that the a buyback has to happen.

        To help with you reading comprehension issues, Seth wrote "it is also plausible that the credit facility was enhanced in order to meet advancing distribution needs, to fill greater pipeline builds and to invest in new product development." That is an utter lie. Go and suck Seth off if you are so willing to defend his lies.

        Sentiment: Strong Buy

    • Actually the company has a 50 million dollar line of credit as stated in the financials and in several presentations. The 8-K filing is actually an amendment allowing for 28 million to be utilized for share buyback (and there is a rephrasing of dividend definition) I can't decipher if the dividend is now allowed or if the definition was just amended to match the wording of the buy-back wording

      Either way:

      Skullcandy does have a 50 million dollar line of credit
      They were NOT allowed to used their credit facility for buy backs or dividends at IPO
      The filing WAS to free up and secure 28 million of the credit for buy backs - They sourced other lenders to secure and underwrite the 28,000.

      I'm pretty sure I am correct based on my research

      Sentiment: Strong Buy

    • shorts better start covering soon

      Sentiment: Strong Buy

      • 1 Reply to nathang0586
      • From what I can gather from my own research, Skul hasn't lost any of it's appeal to the customer base and the price/earnings looks good at this trading range. The insider selling was due to scheduled transactions, so I'm a little less apprehensive about that issue than I was initially. I never rely on a short squeeze and choose to focus on the business and other clues with regard to the products reputation, but there are a lot of shares out there that have been sold short. The implications of a high short percentage of float can be judged on your own opinions.

        -C

 
SKUL
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