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Skullcandy, Inc. Message Board

  • rexobxip rexobxip Jan 2, 2013 1:57 PM Flag

    Something stinks... Company needs an independent forensic audit

    I have to say, something is not right with this company. Companies losing money in competitive markets have stocks that perform better than this.

    Also, how did Jefferies analyst Randal Konik go from BUY to UNDERPERFORM and drop his target price from $17 to $6 without the company missing earnings or having any documentation of shrinking margins (yes everyone knows there is margin pressure). Pretty radical shift on his part. Has he been asleep for months?

    To quote the Jefferies release: "Konik writes that he has become more concerned about promotional activity and competition in the headphone market. In particular, he notes that the in-ear segment, which accounts for more than 60% of the company’s revenue, is seeing significant competitive pressure which seems unlikely to abate any time soon. He also fears the company is losing market share."

    He fears, he's concerned? Based on what? I don't want his feelings. What's the documentation? Yes, they may be losing market share as others enter the space, but they are growing double digits and may be taking share from main competitors.

    Is this analyst complicit with shorts? As this is a great opportunity for shorts to cover.

    Or is Skullcandy cooking its books? If their projections are accurate, this stock now has a P/E of less than 6x and a forward P/E of around 4x.

    Somebody is wrong here, and so wrong that it borders on unethical.

    I would like to see an independent forensic audit of the companies financials.

    Sentiment: Hold

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    • They are audited by a Big 4 accounting firm quarterly and cooking the books.

      • 1 Reply to chaz16669
      • so was Enron... so was Tyco... even Bernie Madoff was audited. I'm saying a forensic accountant who looks behind the numbers SKUL gives them.

        I'm sorry, but something stinks here, and SKUL management is looking the other way and doing shareholders, and ultimately themselves, a disservice.

        Doesn't matter what the market has done, this stock has been going down, down, down for months. If their #s are real, their is no reason for the stock to perform this way (FY earnings projected at $1.05 and this stock craters day after day).

        Sentiment: Hold

    • I agree! Something doesn't smell right. That is why I said I will be buying more of this stock at this level. It could be possible SKUL is cooking books but instead I think it's more probable that Jefferies is beating down the stock for SHORTS or to allow some "buddies" to buy it cheap before earnings next month.

      I can't see how this guy changed his mind from November until now like he did with his rating without giving more substance. Worse yet, I can't believe the stock has reacted the way it has.

      Just doesn't make sense.

      Sentiment: Strong Buy

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