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Skullcandy was some of the best tasting candy I've had in a long time....I was off today and decided to do some rare day trading, although it's small stuff, just a hobby. Normally, even on CAPS, I'd wait for the turn signal, at least a day or two if needed. I should learn to wait for the 3-day rule on many of my CAPS calls, but I'm too impatient and CAPS is for watching, evaluating and learning.Did I trade Skullcandy deliciously up?? No, not a chance. My quick gut reaction was to check out the 40% spike and read the earnings report. Yes, they beat analysts estimates, but the bar was pretty low. Yes, in retail, many are not beating this past holiday quarter....but.....An upgrade, top tier news reports, lots of excitement.... for....Net income $0.13 per share, good beats estimates....but..."Net sales in the fourth quarter of 2013 decreased 28.4% to $72.2 million from $101.0 million in the same quarter of the prior year"... . DOWN 28.4%?"Gross profit in the fourth quarter of 2013 decreased 30.0% to $31.4 million from $44.9 million in the same quarter of the prior year." Margins down 1%"Net income attributable to the fourth quarter of 2013 was $3.6 million, or $0.13 per diluted share, based on 28.1 million diluted weighted average common shares outstanding. Net income attributable to the same quarter of the prior year was $11.5 million, or $0.41 per diluted share,"AND the clincher..."For the full year 2014, the Company currently forecasts net sales to increase in the mid to high single digit percentage range over 2013 levels and net income on a GAAP fully-diluted basis to be between $0.10 to $0.14 per share."WOW, about the same ALL of 2014 as the Holiday quarter just passed...WOW..A PE of 70+Man, that CEO is a wordsmith or a profit...I would have bought snake skin oil... from him.... obsessing, disruptive, ethos" through obsessing about our consumers, disruptive technologies, and creative branding," said Hoby Darling, President and Chief Executive Officer of Skullcandy. "The year was capped off by a strong fourth quarter performance focused on reinforcing our brand ethos and positioned the business for long-term success. "Sorry, PUT-PUT when the stock was at $11.00 this morning...... now I can almost pay for my son's rehearsal dinner tonight....I love a break even day......EXPECT this to retract back to $6 or even $7. Will not ride down that long as there is a lot of conviction bias over headphones and possible Walmart sells, and then there is that CEO, he might entice me to buy the snake oil if I stick around....
A stock I once lost points on that appears to have finally bottomed out. CEO and CFO have both made open market buys since March.
Trading near tangible book value. The stock is oversold. Even if dire predictions are true about a permanent reduction of market share is true, then the stock costs roughly what it's worth currently.However, there are some potential catalysts. Skullcandy just brought aboard another successful Nike manager (a VP, actually). Also, Skullcandy is actively reducing their distribution through their discount channel. This will improve their image and cause customers to reduce their bargain-hunting for Skullcandy products and buy at retail.The upside potential is much stronger than the downside.
Short. Trendy headphones maker has seen its hey day and is not passé on the slopes.
New CEO has a strong plan in place. Signs of insider support.The Crusher headphone reviews are slightly mixed but overall good. The Gaming headphones seem to be doing well and growing rapidly. Fixing packaging issues that they thought were hurting sell through. International sales expanding save for a major retailer going bankrupt.Most importantly, market cap is below what they have on their books. Down side risk is low at this point, while upside potential fairly high.
Undervalued with High P/E, and recent insider action.
More competition will mean lower revenue growth
IAG , SKUL , PBR, VALE, SLW, CLF, PAY, AMX, NAV,
Failed IPO at $20 now down 2/3. CEO jumped ship, and founder now back in charge. Speculative play for 50% upside. Stock is worth $10-12. Plenty of teen fashion risk, but take a look at their headphone ranges. They don't look too bad.
Risky play, but dirt cheap. Really low forward P/E and PEG, even if they are overestimated should be good value at this time. Company management seems to think so as well. If my reading of their 8K paper is correct the company is going to buy back a significant portion of outstanding shares. While it will add debt to the company, I think it is a wise decision from the management at this price level.
Aside from a slightly lower guidance and a lot of speculation I can't see why this stock is down 75% in the last few months?
Bad News priced in. Ready to run with any decent news. The bar is not set high.
Bought in RL@6.77
Momentum play:Jeffries downgrade43% Short Interest
Finally cheap enough. P/E < 9, min. earnings est. of 10 analysts for 2012 and 2013 is $1. Great ROE of 24%, still growing rev and earnings. Cons: headphones. Who needs them? Make you go deaf...what?
Short squeeze possibility
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