SKUL entry into Gaming is a great move right now. With Astro A40, A50 and the New SLYR/ PLYR 1,2 they have a good line up to compete in that market. Add the brand name and the growth will be solid for the future. I also like the covering of potential new competition and swings in market demand for their core audio market. EXPECIALLY UNTIL they reset the brand image and packaging. I was just at BBY and well... Pretty unimpressed by there brand image amongst the Beats/ Sony/SOL etc. although they do have shelf space and visibility which is key of course in retail, they need to expedite their brand image and packaging as well as get closer to there vendors ASAP. I didn't see the Crushers!? Maybe I was blind. Th PLYR 1 was there, but not being promoted.
Progress not perfection... It will happen, just need some patience. In the meantime, load up on the dips in this stock as it has major upside potential and limited downside (international sales and gaming, new product roll outs etc. will assure this). IMO
By the way, I have seen the deep discounting stop with SKUL. Even at Walgreens type stores, the pricing levels are up. Sure you see bargain bins of OTHERS buds, but looks like retailers are riding this excess inventory and Beats is coming down as SKUL has the advantage of holding and even nudging up their prices as the are well positioned mid-price wise. The reset "pain" cut hard and hurt, but I feel pretty good going forward, getting RID of the discounted and off channel plan of the past, will pay off going forward...
Last time I was at Walgreens (week or so ago) I did notice the 2XL dominated the shelves. Prior there was a ton of brands represented. As Charles has stated, there seems to be a consolidation going on as Andrus, Alden and Darling have all spoke about. I believe Skullcandy's distribution and ability to deliver on time is what is driving this (Alden stated it last)...
Social Media has been lit up with buzz from the rollout. Equal to or perhaps even more then the Crushers. Interested to hear in August the sales impacts from both these rollouts. I suspect some good news... Earnings and revenue beat. Wescoat and Darling had to be conservative last call???
Part of the problem with the huge swings (IMO) is the sell out of Institutional interest last quarter. That's a lot of shares (4,000,000) or 25% of the float that went on the market. I am sure if/when SKUL reports positive earnings and better guidance going forward, that the Institutional buyers will absorb some more of the float and swings will stabilize. In the meantime, I would expect some 3-6% swings. Although , hopefully, the curve is up going forward. If OP was chiming in, he would probably dispute my theory.... :)
My only concern is that yesterday was a mini short squeeze. Either way, we should see low 6's sooner then later. IMO
1) Over reaction to fed comments and the markets dipping
2) Last few times SKUL pulled back like this it bounced significantly the next day or so. Easy 5% trade here.
I'm long, but if I had the cash to trade in and out, this would be the time. Also a great time to get in long as we have hit the 6.10 mark and will go higher.
Probably some of that and I would think some institutional buyers coming in at this low level (considering a bit higher volume this week. IMO
The Astro Boy's were pushing it on Social Media saying how fun it was to collaborate with Skullcandy Engineers and Excellent quality and value. Those Astro Boys make the best of the best Gaming sets....
BBY Exclusive for 2 weeks, then roll out to other retailers (and I assume on-line)... Nice stream of revenue for next quarter.
It's their 2XL from what I have seen in the past. Not their core branded products.
As you may or may not know I am a long here. Having said this, one thing that does blow my mind is the inability (of the previous executive team) to establish some continuity with this brand. There is a miss match of packaging, the web site is all over the place (with the theme).
Most disturbing is the miss match of corporate identity within the last investor presentation I saw. The CEO (Andrus) had a miss match of themed slides that looked like a High School Student put them together.
Further, they need to try to meld the ASTRO and Skullcandy together better. I get the "Skull" Logo (good job), but its the all over the map themes that kill this brand when you shop for it.
If anyone from SKUL management can read this: TAKE NOTE AND FIX YOUR BRAND(S) CONTINUITY.
I got hit on the back of the head once from my boss (seriously) for not following a professional and clean presentation I gave once via PowerPoint. Never made that mistake again!
That is a common observation and one that is being addressed via the "reset". The packaging effects primarily the Headsets and the higher end ear buds. I still scratch my head WHY WHY WHY did they go that route to save a few bucks... urgg We will be seeing the new designed packaging hit the shelves HOPEFULLY by the Holidays. In the meantime, they were phasing in 2.2 packaging which is a little better (added a splash of color), but still isn't up to par.
Agree. Plus as I stated previous advantage SKUL based on price points. Depending on the College, the income level and disposable income % will fit nicely with the ear buds and up to 100 headset price point. Not saying some Higher end Beats or Sol will not move, but remember the book store is a regular (at least quarterly or semester) visit by a student. They will be able to replace / purchase ear buds and less expensive headsets vs. a one time Beats or Sol 300 purchase. How much of an impact this has on RSH or SKUL of course remains to be seen. This would be a good question to field to Hoby during the next Earnings Call.
I see it as a net positive as that age group is more in line with SKUL target demo. Also, the SKUL price range is more in line with "starving students" budgets in comparison with Dre and SOL mentioned. I know I could afford a pair of SKUL buds when I was in college, but not a pair of Beats. Just saying. Besides disposable ear buds will do well in college book stores (Ink'd and Smokin buds)...
Yep, headsets just hit the market a few years ago. No one will be wearing them in a year. They are not needed to listen to music. Boom box's will make a comeback!!! I think SKUL is introducing a big bad boom box called the RYN (Rattle Your Neighbor) next quarter. Nice! (Sarcastic) By the way, the shorts have left this name en mass.
That would make sense. They could start buying back shares (if needed) and then sell out. Private equity could break out Astro, there is free cash, brand name and the patent rights that all could be sold off. Wouldn't be surprised if Andrus is working with Romney right now to work out the deal. All speculation, but makes sense I guess?