althought the stated P/E is correct above... one could contest this ratio but you need to look under the hood. Under new SEC rules companies are being forced to clean up the balance sheet. for example if a company makes an aquisition with a 20 mil price tag and the value of the total company after aquisition is 100 mil the aquisition represents 20% of the total value... if the value of the total company falls to 50 mil that woudl mean the aquisition represents 40% of the revised value so the SEC forces a write down of Goodwill to realing that purchase to remain at 20% of the total company valuation.. in this scenario the company would right down goodwill by 10 mil which then leaves a book value if the aqusitio at 10 mil (20 mil buyout less 10 mil write down) this revised value of 10 mil on the books represents 20% of the total company value... this is important to know and understand. In Zaggs case they wrote down a non cash transaction by 11 million which does impact GAAP numbers and hence the 16 PE for zagg... otherwise zagg had a blow out quarter beeting estimates by 10 cents per share and blow out year. If you exclude this one time no cash transaction PE is around 7 now and forward looking trading at 7 as well... indicating great value potential... zagg also raised guidnace for next year which exluded any impact that could be realized by a number of new products.
I just wanted to clarify the PE .. I am watching SKUL but not a buyer as yet. Good luck to all you longs and your earnings call later this afternoon
zagg also raised guidance for the coming year and is introducing new products in a variety of areas. the short sellers have not yet covered their zagg positions, it is close to all-time high short interest, whereas skul shorts have covered more than 50% of their positions. the shorts are trapped in zagg because there are not enough sellers of the stock - this provides zagg with a nice short covering rally potential that does not exist with skul. would actually be interesting if these 2 companies merged, cut some duplicate costs out and cross-sold products in their best distribution channels.