Skullcandy stock is now at less than half its ipo price. Do you think the company will turn around? The ipo was at $20 in July 2011 and now the stock is at around $6.50. The analysts are expecting earnings of around $1 a share this year, around what they earned last year. The company has very little debt. The short interest in the stock is huge. Shorts are future buyers though, and will help propel the stock price upwards when they cover. The tricky thing is Q4 earnings. The company makes around half their profit in Q4. If they miss the stock will go down further, however if they beat expectations then the stock may surge. At around $6.50 a share the stock is starting to look tempting.
I have been watching the stock from the sidelines and remember many bashing it at the ipo time when it was $20. Since then though the company has come out with some interesting higher priced products. Recently there were articles claiming that the company might be a takeover target at its current low stock price. Is the stock a buy now, and if so is it just a short term play(hoping for a rally to $10-12) or does the company really appear to be reinventing itself, and will this be a good long term story? Soon after the ipo when Skullcandy's stock price was around $20 I was thinking that Skullcandy should have tried to buy Koss, Grado, or some other small headphone maker with interesting technology.
Edited by JK1 - 2/10/13 at 8:58pm