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Skullcandy, Inc. Message Board

  • michaelsistowicz michaelsistowicz Feb 4, 2013 3:32 PM Flag

    Share Selling (insider)

    Look guys, i don't think it takes a rocket scientist to figure out what went down here...

    Rick Alden comes up with an idea and starts selling it.
    Andrus comes aboard (at no salary for 2 years)
    Company grows, but finds it is in need of cash
    Alden and his officers start looking at options for going public
    IPO is generated
    Skullcandy is sold a bill of goods by brokerage houses and the IPO is overpriced
    A few key insiders are given huge amounts of indirect (and direct) converted shares at IPO
    Wall Street is in a period when there is mistrust of IPO's and many are botched.
    Original CFO quits unexpected and badmouths the IPO
    Company growth and numbers are good
    Insiders are following the "game plan" laid out by the IPO plan for cashing in on shares (selling)
    Share price tanks. Wall Street has distaste in mouth for IPO and many key investors are burned (buying in at 20 a share).
    Listing brokerage houses walk away fat and happy with their fees.

    Here is what is going to happen:

    In order to maintain introducing diluted shares into the market, the company will have to buy back shares.

    Company financials will be OK (I'm not predicting EPS up or down)

    Here is what SHOULD happen

    Along side the buybacks, insiders should be buying direct shares and suspending indirect share sales UNLESS the stock price increases back to the IPO range.

    Someone needs to get it through Alden and Andrus's head that this was a botched IPO and THEY are responsible for falling for the high priced IPO trap. THEY need to take it up the you know what and show Investors they are confident in OUR company.

    I hope that these issues are addressed in the Earnings Call... Or someone questions them on the subject.

    Based on previous conference calls and questions, I haven't seen it.

    Sentiment: Strong Buy

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