Seeking Alpha

I am of the opinion that Skullcandy (SKUL) has many of the characteristics of a successful turnaround and that the turnaround story has gone underappreciated thus far, creating a potentially highly-lucrative opportunity for investors who jump in at this very moment.

Cheap

Skullcandy stock is cheap by several traditional metrics. For one, the stock now sits close to the lowest it's ever been.

The company IPO'd at $20 just a few years ago and the stock is now priced at just 27% of that at $5.32. The company's prospects have deteriorated since then and the IPO was unjustly high, but even so this massive discrepancy seems somewhat unwarranted.

The stock trades at just 1.325x tangible...

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