JS, It seems to be turning the corner as you said. When the CEO keeps stating "the back half of 2014" for the turn around (over and over), you have to believe that the market will build in some of the share price increase (based on the turn around assumption) starting early next year. The advantage of holding here is of course the added advantage of a surprise such as a buy out (which I firmly think will take place, its just a matter of when?).
They will come out with 2 new products shortly. One is your Bluetooth headset (over ear) then they will come out with noise canceling earphones. They may get into these two areas in ear buds as well as over ear. All this has been out. For awhile. We need Hoby to blow us away with a industry leading new idea. Sadly it ain't going to happen anytime soon... :(.
Walgreens has Bluetooth headphones starting at 15 bucks and they have Bluetooth speaker set ups starting at 20. Generic brands. Not sure of the sound quality or durability (they look cheap).
Skullcandy is going into the active lifestyle demographic (like Nike). The Bluetooth headsets will come out sometime next year IMO. Kinda ticks me off as they are so reactive and not proactive. I'm just gritting my teeth to see how holiday sales goes (in general)
Air Raid is available on Amazon at 149 dollars. I just searched it. My comment would be how can Amazon be the number one on-line retailer if people can't figure out their site?
Doug Collier and Hoby have history and that in my opinion is where the connection came from. Doug's appointment as Chairman of the Board and replacement of Kearl (Alden's partner) signaled the changeling of the guard.
Getting Heidi O'Neil on the BOD's is the biggest "clue". I have done some research on Nike executives on other boards and outside of Educational, Hospitals and other Trust type Boards, no one is on any BOD's of this small of a company. There are 20+ Nike executives (Including it's own board members) on various other boards. They are all S&P 500 type companies and many on Dow boards. Someone has a plan here. Add hiring an Under Armour executive the plot is thickening! IMO
I think Charles and Hoby made the answer to your "imminent" clear. Charles stated in his article that his theory is that Wescoat was brought in to find a buyer and due to declining sales and asking price they couldn't get a proper suitor lined up (for what Alden would want as a return on his shares) Hoby has said that the revenue decline bottom is in and there will be increasing revenues going forward (2014) and that the back half of 2014 the turnaround plans will be complete (I'm para phrasing). So the article theorizes that Q1 earnings call (April/May) will bring clarity to the year.
So the assumption is that once the company is stabilized (By Q2 April/May 2014) the possibility of the takeover is on the table. Doesn't mean it will happen that soon, but a possibility.
Just my take from CM's comments. I think it will be April as Hoby was probably given a year to get the ship in line with the Nike brand synergies. Hoby was hired in March this year.
I actually was at my local Target and I have to say, Skullcandy was positioned nicely.... Must be store to store. That is not good news though.
Ben, don't be surprised if SKUL introduces a Bluetooth headset early next year. Air Raid obviously has been developed with that technology and they can expand into headphones / earbuds etc. They are unstuff in the channel right now and every introduction is being timed to not hamper that. The introduction of product after product rapid fire is part of the reason the channel is stuffed and margins are suffering.
Hoby's approach is proven and although may seem painful now, is the tight thing to do. A year ago everyone was screaming "get into Walmart" that would have been a further disaster in the off priced channel. Patience my friend!
They have a lot of work that needs yo be done on the marketing front. Sad thing is, it isn't rocket science. Marketing 101 - Product front and center, logo is always featured, endorser endorses not being endorsed. Product first, culture is used to support the product not "our culture is the product"
Skullcandy reverses everything I stated above. Frustrates me to no end... Hoby is from Nike, the new VP of marketing from Under Armour... They should know this!!! Both those companies made their dominance on brand/logo recognition and the PROPER use of endorsers....
Mr. Brazil team soccer leader will be loaded with logos from others in every picture he is in. He probably won't even be wearing a headset. There will be names like Umbro blazed across his jersey... Waste of money. They will be ENDORSING Mr. Brazil, not Mr.Brazil endorsing a Skullcandy product. .
These celebrity's in the world we live in today are out to get THEIR NAME in the public eye (they get paid for self serving publicity). Nike and Under Armour, Coke, Haines etc. they do it right. Logo, Product, Celibrity (read singular not plural in all these categories). Culture is always in the background not foreground.
I have faith Hoby will right the ship, he has to get his team up to speed and this focus solidified ASAP. Unfortunately he is dealing with a young, star struck cultured specific staff. Tough road ahead, but so simple!!!
Chaz, it's been a train wreck at BBY (1200 stores or "doors") since last holiday season. I totally agree as my own channel checks there have been mostly deep discounted inventory. One thing I noted recently was BBY seem to be shifting to a Sony earbud inventory. Skullcandy has not updated any displays there for over a year. I did note a cheap cardboard Skullcandy isle display added recently, earbuds only. Pretty sad, but Hoby has laid it out on the table that they are still working off old inventory. He (Hoby) noted RSH (over 7000 doors) problems as well. I do see some progress and continuity at Target (2000 doors).
These are the "big box retailers". They are shifting to more specialty stores which are hard to track and of course their version of organic growth (events, social media).
Part of the controversial "margin decline as they get into under 99 dollar products" I suspect is continued deep discounting to get rid of old inventory, gaming and the Air Raid as well as the continued increased costs related to upgrading their design quality (which they have made leaps and bounds over the last year and will continue). They will recoup some of these costs as the warranty claims (one of the best warranty's in the industry) decrease (or these theory goes).
Once the excess inventory is gone and the new streamlined product line is in place, they will get bought out. Mark my words!!! There are some theories on the suitor, I suspect the rumor mill will start heating up post Q2 next year or perhaps sooner....
Someone had about 45,000 shares on the ask at 6.05 for the last 45 minutes or so today. No one was really nibbling at it per say. See where it goes tomorrow.
Consolidated the last 2 days on low volume and popped at 5.80. Looks like average volume today.... Nice is swing trade...
I concur with Charles. Friday was a good buy in day. It bounced at 5.85 on low volume... Those would be great buying opportunities (5.80's).
I would assume that will be for a 2 weeks starting tomorrow, then full roll out on the 25th. They have tried the AAPL rout before (Navigator),,, I don't think it went too well?