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Skullcandy, Inc. Message Board

  • redheadinvestor May 3, 2013 11:07 AM Flag

    Ambitious, conceptually correct strategy. Where's the financing?

    I have never held any position in SKUL and I don't plan to initiate one at $5. I think the plans of the new CEO will require either cash he will struggle to find and/or a daunting amount of time. Beats is already in the spaces he plans to enter, and it's negligent that SKUL didn't move into these spaces earlier. That might be in the past now, but I think the road ahead is harder than it looks.

    If he succeeds the stock will jump, but I don't think that day is coming with the next Q release. I also think that the $3.50-$4.50 range is a more realistic range given the risks involved and the financial position of the company.

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    • 60 million in cash and receivables, 25 million in credit, no debt, double digit growth in gaming. Getting out of low margin resale business and still will turn a profit perhaps as early as next quarter. Hoby didn't say they were going after Beats or that space (mass market). He mentioned one new high end set to be announced. What investment? They have a solid retail base as well as online presence and following and a development team on staff already (which I dont know if the likes of Bets even has as they may outsource design as these Hollyweird types do, thus the extreme matk-up in price (and chasing fads). I respectfully disagree with your theory.

      • 1 Reply to michaelsistowicz
      • Saying you want to broaden the appeal of your brand and your product offering is wonderful in theory, executing such a strategy requires time, resources and product innovation. unless they were already working on this shift ( not ) it will not have a meaningful impact on the financial performance in the ST and per the previous post, will likely negatively impact the P&L as they invest for the future. If it were 2 years ago I would be excited but now they are a late follower against better funded alternatives ( beats ) who have already made this shift and by the time they get to market it will likely be already commoditized like the over the ear market. I give him props for selling the dream , he is an investment banker by trade so it is more likely they get sold than he executes such a a vision. IMHO my gut says we fall below $5 first.

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