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Skullcandy, Inc. Message Board

  • hottubber99 hottubber99 Mar 9, 2013 12:23 AM Flag

    Watch Insider Trading

    Between now and the 1 Q eps release only SKUL insiders will know whether the changes they are making have been working. If they are working then you can be sure that they will be buying the stock, and plenty of it, in the 5-6 range. So pay attention. This will be the only clue. Stuff on this MB will be nothing but babble.

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    • fat.blubber Mar 15, 2013 6:39 PM Flag

      Oh Chubber, this is like ordering a couple dozen donuts in advance. The officers have already agreed to buy the stock.

      Stick to your donuts

    • You're probably right hottubber, but the most interesting thing about all of your posts is timing the inevitable donut related reply by your faithful stalker fatblubber. What did you do to him? Why don't you report him? Or is he your other other self? Just curious.

    • As a show of support insiders should be buying. Couple that with implementing some sort of share buy back and that will signal confidence to the market. From the company's perspective, there is no better use of their cash now than to purchase shares at book value. Sure it helps the investors, but more importantly, it's accretive to earnings. With Alden's massive stock holding, one would think he would be that much more motivated to implement a purchase plan.

    • Not necessarily the case.

      What is more likely to be seen is that within the next month or so you're going to see the company award lots of options to officers and directors with strike prices down at the current level.

      I'd also suspect a small stock buyback to be announced. Nothing major, but maybe something on the order of 1 million to 2 million shares - just to let people know that the stock is undervalued and they'll be buying at these levels or lower.

      Maybe insiders will buy, maybe not. If they do buy, it certainly is a vote of confidence, however, absent the insider purchasing, I wouldn't take it to be a negative or an indication that things aren't working. They are going to have shares and options thrown in their direction regardless of the situation.

      • 1 Reply to o08o.ugh64w
      • Will be interesting to see if they offer up some incentive ladin option plan to boost the EPS. I believe the employees are tied into a stock comp plan for years 12-14, which at this point is under water. So they could initiate another plan on top of this plan, but that would appear greedy IMO.

        For accounting purposes, this original stock comp plan is still being expensed/amortized through the financials using the original expected target price...probably somewhere in the 20's. So when 2014 rolls around and the stock price is still low, all this previously expensed stock comp expense is reversed back through the financials because the company was expecting to issue stock in the 20's versus actually granting it in the single digits. That number could be very material. Downside is currently expensing it as though it will be granted in the 20's...but it is a noncash expense.

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