They have there own gaming line up established now with SLYR, PLYR 1 and 2. That group is the "Rock Stars" as Alden called them. They generate only a small portion of net sales (they won't break it out). They bought it for 5 million . That would generate some serious cash to the bottom line if say they sold it for 25 million plus as well as streamline G&A. Just another possibility. There WILL be news going forward this year early next of some major sort. Buyback?, purchase a company or 2?, go private? Buy out? New product launch? All would spike the share price. First thing is getting the company back profitable which will be q3 latest (November earnings call).
Good to be long at these devaluated stock prices. Good for those of you who bought or are buying at these levels!
Selling a profitable part of the business for short term game would be stupid. Agree with daitarro that any takeover/selling will distract management. They really need to focus on how to make a profit selling their bread and butter products, not the family jewels.
What would be the benefit of selling Astro? Skul already has plenty of cash and no debt... and most *investors* and analysts are smart enough to see through the one-time higher EPS as a result of the sale, so the increase in the bottom line would certainly NOT translate to an increase in share price.
It seems like they have integrated Astro organizationally and with the new releases it's on the verge of showing very nice growth. So, why sell it now, that the fruit of the work of the past months can be reaped soon?
And I think they shoiuldn't do any M&A at this point. They should rather concentrate on getting evrything in order, cutting cvosts and growing sales. A company purcahse would only distract management with integration issue. To me that's the last thing we needd right now.
if astro is going to do well it should be this holiday season and the next. New gaming systems are coming out. PLYR 1 looks really good. Kids and Adults should want some good headsets for their new system.