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Skullcandy, Inc. Message Board

  • valuepickpick valuepickpick Mar 8, 2013 2:08 PM Flag


    Shorts and probably some deep pockets? Any thoughts?

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    • I'm buying SKUL, and I hope the share price suffers further erosion, so I can buy more shares at even lower prices. The company has a pristine balance sheet sporting roughly 70 cents/share of cash and no debt. The company earned a buck (non-GAAP) in 2012, and management says 2013 results will be below 2012 results, and I believe them. The new CEO decided to revamp product packaging in a messy 2-step process, which will impact a couple of quarters this year. Also, there is excess inventory in the channel after a 4Q that didn't meet sell-through goals, which will contribute to a 1Q 2013 loss. This stock is "a dog with fleas", but the stock is already in "value stock" territory. I'd not be surprised to hear some hedge funds are acquiring shares down the road.

      I paid slightly more than 5X trailing earnings to buy shares in a company with a future. I'd not be surprised if the stock gets a bit cheaper at times during the next quarter or two as institutional investors dump their shares. Fine with me--I'll buy more. I'm a patient long-term investor. I've had good luck in the past buying the shares of cash-rich companies that have had a bad quarterly report or two, triggering a stock price haircut. The stock is a mess, but the company is intact, and I expect the CEO to eventually succeed in his turnaround program, although it will require patience on the part of investors.

      LOL to all longs!

      Sentiment: Strong Buy

    • Looking and see lowered to $6 but no $4 found.

    • Day traders hoping for a pop and shorts taking profit. Unlike dotcoms like groupon, I don't see this bouncing back for a while.

      • 1 Reply to kronem
      • Another problem here with SKUL is this, the market has seen major sell-offs during late spring and through the summer for the last several years, so if we see the trend repeat itself, SKUL could be facing further losses if there is no news and the major indexes go through a "correction" which could drag prices even lower here.

        I would not put calls for $4.50 per-share out of the question if the major indexes fail to push higher and higher like they have. I have a feeling there will be a lot of people heading for the exits at once in April or May.

        High gas prices, higher taxes, government spending cuts, sky high P/E multiples, and "Sell in May" are all reasons, in my view, to be selling some stocks right now while things are at the top (except for SKUL)

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