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Skullcandy, Inc. Message Board

  • michaelsistowicz michaelsistowicz May 15, 2013 12:16 PM Flag

    Short interest / "squeeze"

    The short interest is hovering at 3,000,000 shares or ~ 15% of the float now. Stock is at 5.50 a share. The short interest was 12,000,000 shares or 75% of the float back when the stock was at 16 a share. Although I can see a possible share price increase as the supply/demand shifts, the possibility of a dramatic squeeze seems unlikely to me.

    Having said that, the combination of heavy buying from overall market sentiment coupled with some share buyback (which has not ever been announced, questioned by analyst or discussed in a open forum by the company), perhaps could squeeze some shorts out en mass.

    I however, believe the filing for the restructuring of finances (I.e. the share buyback possibility), was facilitated by the company as they had knowledge that the company was going to have a "reset" financially and to make available another option in case the share price dropped. I have no clue if they would entertain a buyback now as the stock rises, and I would suspect they will be coming profitable sooner then later.

    Of course I am long here, not a trader... So play your cards as you see fit in your financial investment strategy.

    IMO

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