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Skullcandy, Inc. Message Board

  • littlefred747 littlefred747 Nov 2, 2012 2:32 PM Flag

    How about one dollar...?

    How about one dollar? Is that a fair price bashers? a dollar too much for this stock?
    What is the end game for you guys?
    What does victory look like ?

    Sentiment: Strong Buy

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    • For a committed short the end game is to drive the company into bankruptcy by destroying its stock price. Then the shorts never have to cover and never have to pay taxes on their gains. Lehman Bros. in 2008 was a perfect example of that successful strategy. It requires a lot of naked shorting of shares which will never be covered. (technically illegal but not enforced by SEC). It is very difficult to achieve this objective, however, if the company has positive earnings, and at a now conservative, reduced 2012 SKUL eps estimate of $1.04, it is going to be tough for the shorts to drive the price much lower, even with naked shorting.
      SKUL did not lower its revenue estimate for 2012, and I suspect the lower eps estimate is for the purpose of generating a positive surprise when the numbers are released in March.

      • 1 Reply to hottubber99
      • HB

        That is exactly why they did that (lower EPS full year). I expect they saw the full year EPS a little high and don't have a grasp on what it will come in at once the smoke settle. It is the holiday quarter and more then half their sales and profits traditionally come from this period. That opens up the possibility of surprises (up or down). I do know they have the PLYR 1 gaming headset coming out pre Christmas. I believe the PLYR 2 (High end just a step below the Astro A50) is coming out in the spring. They are smart in spreading that Rev and Earnings out a little as I suspect the insane growth has tappered off (although they did exceed Revenue AGAIN). P./E TTM now is below 10. This is insane!

        Sentiment: Strong Buy

    • Yeah I'm just glad I'm in for $11.50 average buy price right now. I mean, I held Skul since before today.. but now I REALLY hold it, I averaged down SOOO much... increased my holdings 3x today.

      Sentiment: Strong Buy

    • wrong questions, dude..
      i'm just thinking they haven't any single reason to cover right now. why - they're making money.
      all you need is some catalyst, change of trend, momentum...
      don't ask questions, play the game

      • 1 Reply to strcprstskrzkrk1
      • The market reaction STRC is in a "I told you so" mood. If there is one thing positive here, that is, that the earnings bar has been lowered. That brings the possibility of a good quarter (and as you stated a catalyst)more likely. The only thing here that as a long (since April/May) is that I keep on having to change my soiled pants watching this thing dive-bomb.

        Sentiment: Strong Buy

    • At 1 dollar the full year P/E would be sub 1 and the market cap would be under 25 million. Let the dust settle.

      Sentiment: Strong Buy