Interesting how the analysts have upgraded and downgraded this stock during 2015 all while the earnings and growth have done nothing but meet the guidance provided by management in early 2015 (.36 to .40 EPS). Turtle Beach is bleeding cash and gets more love.
Assuming SKUL meets earnings estimates, the stock is currently trading at below BV? June 30th BV is 5.30 plus an expected Q3 and Q4 EPS of 50 cents puts the BV at 5.80. I understand the insider selling which is not sending a positive message, but this share price relative to BV for a retail company would suggest this company will never be profitable again.
I am less than pleased with Alden's sale. I would like to think he wants the cash for some new business venture rather than selling on a signal of weakness. But based on history, any reason is certainly possible.
Isn't a positive sign for the stock price to basically hold steady while these 1.5 mil shares were dumped to the open market? That's a lot of shares to be sold in a short period.
With your continued and exhausting coverage of this stock, I'm thinking all the other analysts and retailers will discontinue their own research and just follow your guidance......no need to double up on what you've done. Look forward to hearing you on the Q&A portion of the earnings call.
My lessons learned with this stock. Big money was right on when this stock was heavily shorted. They knew the pipeline was flooded and sales were gonna take a hit. Too much available info (NPV) out there and I bet against it.....my bad. Lowest short percentage ever for this company now. I'm not suggesting the stock price is moving higher, but I also don't see it dropping from here. Too much sales data available these days and if big money had the slightest idea skul was losing sales like in the past, they would be shorting and making easy money again. Look at Zagg...they have been killed and still a heavy short % on this stock. A different story for Skul.
Any sign of increased sales and this stock is moving up. Not saying that's what happening, but when there are only 27 mil outstanding shares, it doesn't take a large increase in sales or net income to start moving the EPS up quickly.
Being the technical trader that you are, you should back the truck up and short Skul. You have made several arguments that it has been overbought....seems like easy money.
I bought both my boys each the plyr 1 headset for Christmas and they love them. I also tried them and they are awesome in all aspects (comfort, sound and ease of use). I will admit we have not compared them to other brands, but don't need to as we are satisfied. It also helped that I bought them for $129 each at BB, so a great deal.
Also order the Hesh 2 for my son which was a warrany replacement for some earbuds. Opened the package yesterday and both boys LOVED the style as a first impression. I have no idea his thoughts on the sound yet.
That was the same line of thinking when the price dropped from 16 to 5 in six months....it's gotta break soon. Fundamentals tanked Skull, but they can also bring it back up if sales are picking up.
I think we all share similar concerns. Big money was able to recognize dimished shelf space and stuffed channels well before earinings releases and sold the stock short. One would assume they also might be ahead of the curve should Skul start taking back market share and thus begin buying the stock...and that's clearly not happening. So i would assume status quo for now. Skul needs to regain popularity with its consumers.
Not trying to steal any thunder from Charles, but I have thought for awhile of the possibility that Nike or Under Armour should acquire Skul. Nike has a couple billion in cash....Skul would be chump change.
I think Alden would love to sell Skul to a much larger company to leverage marketing and distribution, but can't find a purchaser willing to offer what he wants. Slick move to hire a Nike exec to help facilitate a possible sale. But I don't believe for a minute that Nike "offered" up an exec to gain more knowledge about a possible purchase. Hoby took the opportunity to be a CEO. Just a logical career move.
Stopped in last night at BB to do some Christmas shopping. Immediately upon entering..BAM...a huge Beats display front and center. You could not go in to the store without seeing and walking past it. I eventually found Skullcandy on the backside and saw they had the Crusher out for testing. I had not worn them and was excited to test it, but its display was not working. Its looks and construction are nothing special and I would never buy it without testing it . Only good thing about the Skullcandy headphones were the heavy discounts. Mixmaster for 199 and aviators for 80....quite the bargain. Sales guys did say Skullcandy remains popular and they all rolled their eyes about Beats. What a great marketing job they have done cuz no one talks positive about the sound and quality.
Back to the gaming section where the sales guys raved about Astro headsets. I saw the Playr 1 on sale for 129....a $50 discount and bought one for my son. What a deal! But not so much for us shareholders. I'm guessing BB has no lost love for Skullcandy at this time with all their inventory they are trying to unload.
I still believe in the company, but they have a ways to go to right the ship.
Also got a $250 jambox as a gift. Bluetooth is nice, but I am very under impressed with the sound, especially for this price. Alot of room for improvement in this market.....come on Skullcandy. get busy.
So is BB the retailer Skull is struggling at? Popped in today and noticed headphones had been moved right in front as you walk in (best location in the store). First thing I saw was the beats display....it looked good. Sharing this prime real estate was the earbuds and I would say Skull had the most and best peg space. All this makes sense as beats over the ear and Skull in the ear are #1 in the market.
The other side of this shelf had more of both, which included skull mixmaster selling for 199....not on sale. First time I've ever seen these in a store, and at that price I will be buying a pair. They sounded awesome and felt great...first time for me. But the skull display was weak compared to Monster, Bose and Sony, so I assume they are not selling well here. All I'm saying is a new skull display with some of there existing headphones (crusher, mixmaster, hesh and aviator) along with a wireless jambox and maybe a wireless headphone would be very impressive. The sound, looks and price of Skul are difficutl to beat, just need a greatly improved store presence along with a coolness factor upgrade (packaging and impressive display). Did others hear Hoby say they are working on the floor displays?
But I noticed the consolidation. The major players were Skull, Beats, Sony, Monster and Bose. And Skull was weakest of these. Other brands were there, but had the least desirable shelf space. Sony display was new and looked good. For certain not too late for Skull, but they need to create a knock your sox off display that would include gaming sets. They have the quality, price and cool headphones, but don't have that overall cool vibe to grab your attention and want to make you look at their products.
I understand your thinking as I'm long and becoming the pessimist about this stock as well. It's short on positive news lately. Until the call I think we all have very little guideance as to what's going on at the company.
I'd like to think the CFO's purchase of 15,000 shares in mid March was some vote of confidence. He would have had a pretty clear picture of the first quarter and some indication of how the company was trending and reacting to the "makeover". Because of the insider blackout rules, he only had about 5 open days to make the purchase in March and did so without hesitation.
I don't think anything was leaked which would have dropped the share price yesterday. I remember the share price running up right before the 4Q12 earnings call....which was clearly not reflective of the call.
Not so sure about that...although I'm hopeful. Plenty of money out there that doubts this company and its future. That's all one can assume as the financials are strong. The Skullcandy brand and popularity are not shrinking; I feel certain of that. The demand for headphones and earbuds has not dimished, so I don't see this market drying up.
I'm seeing its competitors heavily discounting their products which tells me the market consolidation will begin shortly. Companies need to hang on to market share and squeeze out the week... after which they may see some recovery in margins.
Skull needs a big hit with the Crusher and continued international and gaming growth. I see less partying being advertised, so maybe they're already beginning the G&A cutback.
Actually the balance sheet is the current strength of the company. No debt and they continue to generate cash.
I'm seeing Skullcandy headphones in stores I never saw before..and in their own center aisle displays. Wasn't even looking for them when I passed the display near the checkout counter at Sports Authority and Acadamy Sports. Also saw them at Sams. I would assume this is all positive.
I think they are surviving the consolidation. Sony was discouting $100 off its headphones...that can't be good. Saw no discounting on any Skull products. I guess we'll know soon enough.
Skull is revisiting its all time low. Not a good preview for next week's earnings. Maybe this quarter will be different, but the action of the stock price going into earnings has always reflected the earnings and the mood of the discussion on the call.
Or he doesn't see the stock price going higher and wants to sell what he can. Not being negative, just realistic.
Not sure about that rumor. However, I was in Best Buy last night checking out the latest in headphones and earbuds trying to stay somewhat in touch with the market trends. I noticed that the Skullcandy earbuds were not in the earbud section, but rather an aisle over with the Ipod accessories. No other brands were in this section. I did not understand why and wondered if this was good or bad??
Clerk said Skullcandy earbuds are still most popular and headphones are second to Beats....probably a distant second. I did notice Sol's were discounted $100...yikes.
If your stock is trading at BV, you have cash and project income, then you buy back stock. It's a no brainer for any company. Uncertainty arises from the market when this doesn't occur, which suggests the company executives are uncertain about future projections and don't have enough confidence to pull the trigger.