nhlennox00, thanks for reading my article(s), I love having discussions about the stocks that I comment on. I don't post much here on Yahoo anymore as I find SeekingAlpha to be a better platform for my writing. Just to be clear, my misunderstanding of the credit agreement was a post here that you are referring to on Yahoo (that I corrected shortly after) that I made at about 1am. It was a small oversight and never did I mention that in my official buy thesis in any of my articles. I was corrected and accepted that I was wrong with my analysis of the credit agreement. I do make mistakes at times, and this is the reason I have decided not to post on the message boards anymore and rather extensively research and prepare formal articles when I have something to say. I've also never said to buy the stock because "I love the logo". I'm a design and branding guy myself, having invented hundreds of products and successfully brought dozens to market with significant sales. I like the skull, to me it is attractive. I don't think that is a reason to buy the stock however, so I'm sorry if you think I implied that. The Nike buyout theory I consider "shocking" as nobody has ever mentioned the possibility. I think most rational people that follow this stock believe that there will be a buy out at some point, as it just makes sense. I think it will be Nike. Obviously the "crowd favorite" is private equity or another electronics company like Sony or Microsoft even. To me (and many others (including the editors at SeekingAlpha who awarded the article an "Editor's Pick" and "Small Cap Insight", believe that my theory holds some weight. We can all debate this until we are blue in the face but nobody knows for certain. Finally, I would argue that the fact that the Air Raid works in the snow (and this was confirmed by a Skullcandy representative and noted in my latest article) is a compelling reason to believe that the Air Raid has a significant competitive advantage.
I'm not OP and definitely don't purport to be a technical wizard, but a low volume test with sharp rebound of the support (mid-$5.80 area) seems predictable to me and a buying opportunity for a trade back up to the resistance (mid-$6.70 area). I don't actually trade in and out, because I really don't have the patience for that and generally hold value positions like this for a number of years, but if that was my game, I'd have had my buy trigger in at the $5.80s for a trade.
Very good call and I'd suggest that any long term shareholder listens to this call in full. Hoby continues to impress me with his long term plan.
Will depend on how the analysts respond (if they even do). Only 3 analysts chimed in with questions on the call, which is very low compared to other calls. Overall I was very impressed with Hoby's presentation. Forget Q4 or 2013. I have been saying all year that this is a 2014/2015 story. Bottom line is they could have beat revenue guidance handily and EPS (which they beat anyhow) if they opened the floodgates like the past management to the off-price channel. 2013 is a true "reset" year but the good news is its still cash flow positive (despite a tiny net EPS loss) and they have enough FCF to see the turnaround to completion, unlike JC Penney for example. Skullcandy is a perfect example of a company that should be private as Hoby is making all the right moves, but making these moves (which shows a ton of constraint) is always short term painful on the Street. He also spent a good chunk of time explaining that the Beats headphone model (without mentioning Beats but it was obvious) is trending down, which I thought was interesting. He seems like a very very sharp guy. One big catalyst I got out of this is that he is aiming to do at least one big licensing deal in the next year to leverage the brand and create alot of high margin revenue. Could this be Toyota?
The first non-Thursday earnings release that I recall from this company. I am holding long (multi-year hold) regardless, so quarterly report movements don't concern me that much. But I will tune in of course to see what they have to say on the call.
OP must be an insider! I would never have guessed they would come out "early" with this ER, considering the past few have been delayed and given the CFO situation...
Kind of unusual for a retail store to close for a whole week in the midst of the holiday shopping season and new gaming system launches.
What could they possibly be up to over there at Astro???
Remember they didn't move to Utah with the rest of Skullcandy.
ASTRO UPDATE: ASTRO Gaming Retail will be closed this week 10/14 - 10/18. We'll have more updates soon & an in-store event to announce. Stay tuned!
I also received an alert today that Skullcandy headphones are now being sold directly by Toshiba.
Who knows what to make out of any of this???
Was this confirmed anywhere? I haven't seen the usual PR announcing this. But maybe they just announced it on Facebook like their other events LOL.
If I was a betting man (which I am coincidentally), I would lean towards November 7, after market closes.
You will have to buy a 2015 Toyota Corolla to even know there's a Skullcandy audio system in it. Funny though in that video they did refer to Skullcandy as Skullcandy Audio a few different times. Good one, you are probably on to something there. I think the wireless speakers are in their infancy still so better late than never.
I watched that video after you told me about it and its pretty slick. Nobody can question the brand resonance among the core action sports audience. They are good company competing with some top action sports brands like Oakley (which sold for over $2B 6 years ago). I missed it on their Facebook and its not even on their Youtube channel.
I guess on the bright side, it gives us more time to get our funds together and buy more and more shares on the cheap. One day this will run and not look back. You have to think there is a reason they intentionally hold back good news, because its unheard of really for a company to intentionally try to keep their share price low, unless they are in buyout talks and do not want to be accused of trying to run the price up which could jeopardize a deal. Thats the only reason I can think of for not wanting to announce GREAT news as it happens, especially with a new management team that is on the radar.
Shocking (being sarcastic) that there is no PR for this... Hoby always talking about "returning shareholder value", but WHEN?
Perfect opportunity for some chest pounding by management you would think? This is a big deal IMO. Not everybody can get officially licensed by Microsoft. A ton of work and you can imagine substantial investment went in to making this deal happen.
When Turtle Beach (who aren't even a public company - or were not at the time) got their license about 2 months ago, they issued a PR.
If you are an investor of this company its best you set up your own google and yahoo alerts and follow the company on Facebook or you won't have a clue what is going on!
From Astro Gaming's Facebook, just announced an hour ago:
about an hour ago
Over the past few months we have been asked by more than a few of our fans for more information on how ASTRO Gaming products will work with the upcoming next gen consoles.
PS4: We can say with 100% certainty that our headsets will deliver Dolby ® Digital GAME AUDIO on the PS4, just like they do for the PS3. Our headsets will also deliver full voice chat functionality over the PlayStation Network upon Sony’s release of a post-launch PS4 firmware update.
Xbox One: Game Audio for the Xbox One will function as normal, through the optical output – meaning all our current products will deliver full Dolby ® Digital GAME AUDIO on the XBOX One. However, the chat connector on the controller is now a proprietary connector, meaning that our current products will require an adapter to connect to the controller for Xbox Live voice chat. Fortunately, until this chat adapter is available, the built-in Kinect microphone will provide full voice communication access to Xbox Live while using ASTRO headsets on the Xbox One.
Regarding new Xbox One products in our pipeline, we are proud to reveal ASTRO is now an officially licensed Xbox One partner. As such we are excited to work with the Microsoft team and the Xbox One but at this time we are not allowed to comment on the specifics of any products we have under development. Rest assured, none of our current products will be made obsolete by anything going on in the Xbox One ecosystem.
In particular gaming and consumer electronics and he (Dave King) expects this to directly benefit Skullcandy Q4 sales.
This research note was out pre-market today.
You may be correct. Just a non-event. But also a missed opportunity for the market makers to push it higher. First news event in awhile (albeit not a huge event). I guess they aren't done accumulating yet.
I would disagree that this would eliminate buyout theory. Especially in the case of private equity, they may see this as a bonus as its another hole that is filled (as they would need a CFO whether public or private and this CFO has plenty of private company experience) and a $300k a year CFO isn't going to scare off anybody with the money to do a buyout even if they hated the guy. I doubt that Skullcandy is shopping around for a suitor as of yet as there is plenty of value still to unlocked in the future and the people who own half the stock (the insiders) can cash out huge rather than meagre. Wescoat is old and doesn't fit with Hoby's new digital strategy. The fact also that Hodell left a presumably good job (he's still listed as CFO on the Shopzilla website) shows that he feels there is significant upside with Skullcandy and believe me he must have checked out the numbers and the story good before committing. Definitely a good sign, but it seems the market saw it as a negative as it would end imminent announcement of Skullcandy agreeing to a buyout.
At minimum there should be an 8-k filed that states something like "as preciously disclosed, Kyle Wescoat has left the company effective October 4. As the company continues to search for a suitable replacement xxxxx (some random person from the accounting department) has taken over duties in an interim role."
Either that or a new CFO announced Monday or a takeover or merger event. One of those 3 has to happen I think early next week.
It would be hard to imagine that it would be anything less than $14 per share given the 40% insider ownership, predominently Alden's shares. A buyout is hardly a "lock" but a fair speculative guess at this stage. Clearly something is going on behind the scenes.
With an earnings call probably on October 31, I imagine that either a CFO replacement would be announced prior to that date or some material takeover news. Its really tough to have a call without a CFO as the majority of questions are generally directed to the CFO as they are numbers related. Its not a tough position to fill, there would be a lineup out the door of qualified people for this job so I find it unusual that it hasn't been filled if they were indeed trying to fill it. I still believe alot is going on behind the scenes and its only a matter of time before its revealed, certainly by the end of the month if a CFO replacement is not announced.