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

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details