Well ignmercury, on nov 15th you asked why all the short interest? I was the first to answer you mentioning the pe and price being rich. That day skul closed at 17.18 today its 13.90. Some investors mentioned the forward pe wasnt that rich and that is true however; the forward pe is the hope or the dream shall we say. Trailing pe is the reality. Also, the chart told me to short. I covered today and made some coin. I do like this company at a cheaper price.
In my opinion the market is saturated in ear plugs and phones of every type ,go into the discount retailers like marshalls and tjx etc,you have never seen so many products on sale at fire sale prices and most of those are skullcandy jmho
Exactly. Their headphones really are garbage. I owned a pair. When this company went public I started my short. This stock will be a trend that disappears FAST, just like Jones Soda. I am adding to my short on ANY bounce.
There are much better short positions to be had. This is a major lifestyle brand that has a ton of run in its legs. i cant understand why of all the crappy companies that are over leveraged and massively in debt one would decide to short this company that is clearly a leader in a field of huge demand and just knocked earnings out of the park before xmas. Almost everyone needs headphones since they have a portable device. Skulcandy is developing a nice niche as a identifiable brand. Walk into best buy and ask what headphone they sell the most of. Oh and the issue with crocs was and is the product is not sexy and lasts too long. People break headphones, they lose them ect..
There are a ton of shorts far better than SKUL
hahaha, you are unbelivalby wrong when you say the P/E is astronomical, the P/E is astronomically cheap if anything, with 2012 projected EPS of 1.16 and share price of 16.15 the forward P/E is just under 14, which by all metrics is cheap for a company growing over 50% per year
the reason it is so heavily shorted is because headphones are a commodity and can be manufactured well for cheap, therefore investors are skeptical about the prospects of SKUL's long term growth, which they should not be (see Q3). This major run down we've seen in the past week has come after a major run up and could be a depserate attempt by shorts to drive prices lower by convincing long term holders to sell