Forward P/E is 6.
In two years tangible book value will equal about current market cap.
Their bank (typically conservative) agreed to allow the company to borrow $28 Million to buy back their own stock.
The company negotiated to be allowed to buy back the stock, so clearly they are interested in doing so.
The headphone market has been crowded for years, but still Skullcandy had thrived. It isn't as if there is a sudden drastic change for the worse.
Skullcandy is super cheap here.
If the buyback buys is completed at an average of $7 per share, the boost to EPS on next year's estimates will bring the forward P/E down to 5.4!!
I believe that next years estimates are too conservative. New products and further traction will prove positive.
Skullcandy will get back to $15 to $20. It should easily be over $10 right now.
So you think that's good? 600,000 shares from those in the know to those not in the know? From those who have a better picture of the coming months to those who don't? From those who play the largest time frame to those who are quick to liquidate?
Now that those shares are in the hands of the public aren't they more likely to be "up for sale".? When supply is increasing with decreasing demand price will fall. And, even with an event that could increase demand there will now be more supply to satisfy the increased demand and the price rise will be muted. I just don't see how it is a positive.
Why don't you just sell some '14 puts at 5$ strike for 1$ premium? 4$ cost basis if exercised, but you know why I am sharing this with u and not doing it myself? Becuz i can make more than 20% going long!!!!
Agree, I have a position now but I'd buy some more in the 4s for sure.
You can make money when stocks over-correct like this, no question. But it's usually a breath-holding contest. Big shorts don't get scared when they're in the money. Message-board talk about "short squeeze" just reminds them that we're schmucks out here.