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Skullcandy, Inc. Message Board

  • redheadinvestor Mar 5, 2013 1:28 PM Flag

    SKUL: not OOB, but trashed.

    Why? I would guess

    - Lack of investor confidence in management
    - Good annual growth until recently but poor growth in recent Q's (hit a wall)
    - Merely a niche player
    - Lack of leadership

    Which of these things is about to change? One of the leaders is gone, but that's not exactly a dynamic transformation of the leadership. Just firing a guy, while welcome, because he was totally coasting, isn't an answer.

    Time will tell whether SKUL is trapped, virtually entombed, in its not-very-big market niche - a viable but permanently small company with no upside. Ski, skate, surf, gaming - these were once growth spaces, and they're still fun, but I'm not sure they're hot, particularly gaming, where the emphasis seems to be. AAPL has $173 B in cash and probably won't buy SKUL, but if it enters any combination of gaming and headphones in force - and AAPL is looking for something to do and already has a quasi-presence in both spaces - SKUL will be totally uncompetitive. SKUL couldn't handle what Dre brought. If AAPL brings it, Dre will struggle, much less SKUL.

    Even at $6.22, I wouldn't count shorty out. Shorting at 5 DTC is not a tiny short, it's just smaller than the short used to be, which clearly isn't saying much in this case. I'm just not sure the next phase with SKUL isn't L-shaped rather than V-shaped.

6.3434+0.0034(+0.05%)Oct 3 12:15 PMEDT