Tal Davidson
Long only, deep value, contrarian, small-cap

Skullcandy's Growth Story Is Not Broken

SA contributors Charles Moscoe and Stan Ackman have recently published negative articles on Skullcandy (NASDAQ:SKUL), here and here, both claiming that its growth story is broken. In this article, I shall present a variant view, one which sees Skullcandy as a company in transformation to become a great one, and a compelling long-term investment. I will address Mr. Moscoe's and Mr. Ackman's concerns and provide my own perspective.

The Business and The Management

Before delving into the specific intricacies of Skullcandy, I wish to establish the right mindset for approaching such a turnaround situation. One should acknowledge that turnarounds take time to turn, when they do turn. Often few quarters, even few years, pass from the time

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