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Skullcandy, Inc. Message Board

  • wrballtd wrballtd Nov 5, 2012 5:09 PM Flag

    When does it stop???

    What a sad turn of events. Here I thought I had a good stock with a fruitful future with very good past earnings and a not so horrible last one. 1500 shares at 13.50 and now I am faced with a major losses percentage wise. I really don't feel that this drop is justified. The facts are that the short sellers have piled on and contributed greatly to where the stock lies today. So sad.

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    • there are much better stocks with great products and fundamentals out there. SKUL is not a good stock at all

    • In this situation, the proper strategy is to buy more shares if you have the resources. This allows you to average down your cost in a company that is very cheap given its fundamentals.

      This would not be a good strategy for companies that are not growing and/or have lots of debt. However, SKUL has grown every quarter at higher growth rates than predicted by the analyists. It is a very profitable company with a very strong balance sheet now trading below 10 times earnings. That makes it a bargain.

      If they beat their new projected income this coming quarter (which is the holiday quarter), the shorts will run for the hills and short covering will push this stock way up. It is only a matter of time before that happens in my opinion.

      I am buying more shares at this price. No one really knows if it has reached its price bottom yet, but with patience I believe you will look at today's price as a bargain.

      • 2 Replies to nhpwatcher
      • I agree about dollar cost averaging. When your down so big though and have been buying on the way down there becomes a point that you just can't continue to put good capital to work anymore. It really sucks. Against my better judgement I bought some on Margin and find myself sending more and more money to my broker as it goes down. It's like a black hole.

      • I have a bunch of shares, and love the sentiment, but the short sellers seem to be having their way with this stock... reselling the same shares over and over again. The past couple of days action has seen the trading of a huge percentage of the float, and very little on the buy side. I don't see any deep pockets stepping in to buy. Hope you are right that today's prices are a bargain, but I'm not feeling good. Still, I for one am not selling -- just wonder if my broker is lending out "my shares" for short selling. Good luck to the longs.

        Sentiment: Hold

    • Hang in there. There's a lot of people in the same boat, I think. I don't think the shorts can keep it down forever; I'm not a financial guru or anything but I'm pretty sure this stock is way undervalued.

      Sentiment: Hold