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Skullcandy, Inc. Message Board

  • biggestbison biggestbison Aug 2, 2012 10:37 PM Flag


    Nice job. I hope you are reading that book I recommended. That book was the reason I invested here. I look forward to many good years of investing.

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    • I have been long in SKUL for a while and was looking at a target PPS around $20.00. Now I'm starting to wonder, how high can this go on a squeeze ??

    • Regarding margin calls, some of these shorts are probably using their own cash reserves to short stocks. Some aren't likely to have margin calls yet but they would still pay interest on the loaned shares if they can stay above margin requirements Second, shares of SKUL that do come under margins calls can get called away if they don't cover. SKUL closed near the high today so this move isn't over. If anything, it's just beginning now. Each .30 increment up wipes out over $3 million. Once the "profit line" is crossed, the losses will really force the covering to get serious. SKUL is making a lot of money and enough to justify a $20+ price. As the brand goes even more global, SKUL can market headphones to users for decades and they have created the brand name that is so sought after in market economies. With most shares being shorted under $20.00, the covering is about to become very real, fast and furious. The shorts to cover first will be the ones on margin and the ones looking to capture a profit. Short positions carrying a profit and those using their own cash reserves to offset possible margin calls have heavy requirements from brokerage houses. Scottrade requires a whopping 140% cash/buying power reserve. At .30 increments, we should be seeing the requirement levels getting violated which means "call away."

      • 2 Replies to biggestbison
      • BB I would assume that heavy volume would be the first Indication that the Squeeze is on... I would assume that once we start seeing a couple of 700K + share days in a row that the scramble is on. Last 2 days were above average since I have been following it (Back in January).

        Good luck to all on the board that have been patient longs...

        Go long - be strong - go SKULnation!

      • First and fore most... What I meant by Margin call is not only pertaining to the cost factor, but the "Ability to Borrow" SKUL for shorting or even retain the already loaned shares.

        I've been short stocks in the past and one time I was caught on the wrong side of the FSYS (Fuel components with a small float)trade. I was forced to cover by EOD.

        Anyways, the SKUL shorts might be BIG money and they prob. have obtained the shares from other Institutional brokers.

    • hope you took a look at MITK it was up 20% today

5.97+0.04(+0.67%)Jul 22 4:00 PMEDT