I will go on record saying that I believe your article was responsible for the panic sell from $1.65 to $1.22. The stock was stable up until the release and then it just fell off a cliff a few minutes later, with no other news or information released that day. In fact it acted relatively well the day prior, showing some signs of recovery due to the delayed earnings. I probably should have shorted it as I got an alert and when I saw the word 'bankruptcy', I knew this already shaky stock could easily plunge. I don't generally trade penny stocks however, when I buy its for medium-long term, so I didn't make a play. I would also say that the vast majority of Seeking Alpha articles have zero effect on any stock price, but some short focused articles can move stocks downwards, especially volatile stocks like OCZ coming off that announcement. I think you intentionally used 'bankruptcy' in the subject title in order to get maximum shock effect and it worked.
I'm bullish on this stock but not enough to buy in YET. I'll wait for you guys to bash it down a few more notches. Its already trading like it is going bankrupt and so far there is absolutely no reason to believe that it actually will. My whole point is here that I think you guys have such a hatred towards longs of this company (Ashraf refers to them as 'racists' and believes that I am 'abusing' him for daringly challenging him), that it looks like it has blurred your objective vision of the real story. I'm a buyer of fear and panic generally.
FWIW, both Ashraf and Austin take great enjoyment in gloating about their articles and baiting the longs on the Yahoo! Finance message boards. Ashraf knows what he is doing with putting 'bankruptcy' in the subject as that will create panic and will hurt his 'racist' detractors that much more. Thats what its all about with the guy, he's not a trader (I think one article he said he bought 100 shares of OCZ for a whopping $200 and sold for a loss of like $10), he's not a journalist (as they don't post on message boards), he's just a student and a prevalent technology blogger. The unfortunate thing is that with his soap box here at Seeking Alpha he can crush share prices of penny stocks by creating fear and panic. I'm neither long or short OCZ but I'm certainly bullish at these levels. Bankruptcy fear is way overdone (non-existent) and the potential upside is enormous. His buddy Austin Craig has already posted on Yahoo! Finance Message Boards that he is preparing a huge OCZ hit piece, so expect the next shoe to drop next week and then maybe that will be a good entry point. Seeking Alpha should be a lot more careful IMO given their syndication. Its one thing to constantly write attack articles on the same company repeatedly, but to then go and gloat about it publicly on another site, that is crossing a big line IMO.
Skullcandy: Is There Hope For This Former High Flier? [View article]
We could go on forever with your argument, but the same detractors of Skullcandy cite Beats (another head phone company) as the reason the company has recently failed (and they are right) but then in the same breath say that it is an 'undifferentiated commodity business'. The argument makes no sense as you can't have it both ways. Beats is killing it, with a headphone with audio technology that is on par with Skullcandy at double the price. They just happen to be executing much better than Skullcandy at the moment and are cooler and have a better sell through. However, this can change on a dime. But my point is that is as far away from a 'commodity' that you can get. It is all about the branding here and IF Skullcandy can bring cool back and properly leverage the brand, the sky is the limit. If they can't then shares will hover around where they are right now. I think its a great risk/reward scenario.
Skullcandy: Is There Hope For This Former High Flier? [View article]
I disagree and I think that track record is very important. Before a reader follows an opinion they should diligently research from whom the opinion is coming from. Lets face it, some opinions are better than others, particularly financial ones. Clearly you are a top contributor on Seeking Alpha, but I just found your article to be more 'boiler plate' than actually having any compelling arguments to either buy or sell the stock. I didn't really see that as an issue as 90% of the Seeking Alpha articles fall into this category, but then you agreed to a ridiculously uniformed comment from another poster that Skullcandy is selling 'lemon juice', well I have to step in at that point and put a stop to the madness! Good luck with your studies, I know you will be good at whatever career path you ultimately choose.
Skullcandy: Is There Hope For This Former High Flier? [View article]
Mr. Interzone
I wish I had the time to write a couple articles every day as Ashraf does. However, I run a business very similar to Skullcandy and can speak to the branding and marketing and margin and cash flow points with authority. It is a space that I am intimate with and know quite well. I also don't believe having more articles written than the next guy makes anybody more accomplished, and I think even Ashraf would agree with that. I just happen to know this company inside out and I will defend my points, even if I happen to lose 'followers' (which I do not care about incidentally as I don't write articles to make money).
Skullcandy: Is There Hope For This Former High Flier? [View article]
No question that Q1 2013 is a 'reset'. They should still be profitable for FY 2013. Q1 is historically a very small profit or a loss and is the weakest quarter for this company. The loss, while unexpected, is not that big of a shocker. Margins can rebound quickly if they follow the plan. Execution is everything obviously, but my point is the upside potential is $20 a share and the downside from these levels is maybe another $1. It can't get much cheaper than that with their liquidity value inching up to their market cap. I called the bottom in an article on ADNC when it was trading at cash value and nobody wanted to touch it with a 10 foot pole, and see this as a similar type of opportunity. Even in a worst case scenario it will lose $1 from current levels, while the best case puts it into the $20s. I will be happy with a turnaround and a price in the teens at some point this year or next. As you pointed out, the market is forward looking, so any glimpse of hope will supercharge a rally here, thats all it will take. I like my odds here, looking for $10 upside or $1 downside. Even if you price in the odds of the turnaround being successful at 50%, you are getting 5 times value on your money. Hard to argue from a value perspective, that this is not at or near a bottom.
Skullcandy: Is There Hope For This Former High Flier? [View article]
I think you would agree that Jim Cramer has a ton of followers (probably a million times more than you) and you would be hard pressed to find anybody that has not lost their shirt following him.
Thats not to say that you aren't a good writer and reasonably entertaining. You probably have a good career in journalism ahead of you but I think you are missing the story here. And margins have bottomed, the CFO said that during the call that they will increase throughout 2013.
Are there risks? Absolutely. But the company is valued on par with many OTC companies that don't even have products for sale, let alone $300m in sales and positive cash flow. To write an article this long and not touch on the glaringly obvious value, is just short sighted. I will check back here again in a year as I don't have time to write more about this company and we will see who is right.
Skullcandy: Is There Hope For This Former High Flier? [View article]
No personal attack intended, Ashraf. I just don't think your stock recommendations on the whole have been very good. People would lose a lot of money following you. I've dropped the ball myself with SKUL. Which is why I suggest that readers do their own due diligence.
Skullcandy: Is There Hope For This Former High Flier? [View article]
What is a lemon juice stand?
I've only seen lemon juice sold among other products in a grocery store.
This article really doesn't offer any new perspective, only rehashes what a few analysts (who coincidentally have never been right about this name before) have to say.
But you have Ashraf agreeing with you, despite him making a major contradictory point about brand equity in his article.
I urge readers to do their own due diligence, starting with Ashraf's stock recommendations, both long and short.
Report back here with your findings... 'nuff said.
Skullcandy: Is There Hope For This Former High Flier? [View article]
There was also an insider purchase by the CFO of 15,000 shares. at $5.25. This added about 50% to his position. There has not been any recent insider buying activity so this is a very welcome sign.
This is a stock where you either believe in the story or not. If they pull off the turnaround that I think they will this will be back to the teens in no time and trend much higher than that as they get the multiple that they deserve like a Lululemon, Monster or even a slower growth Nike.
The analysts (who have been wrong from day 1 on this name) will all jump behind the name once the turnaround starts unfolding and the stock is breaking higher. At that point most people have missed the boat already. Its a lot more profitable in the long run when you buy at or near the bottom. Simply put, you can accumulate a lot more shares and even lower your cost average by selling some as it rises.
Skullcandy Q4 2012 Looking Back, Then Forward [View article]
I think with today's announcement of the new CEO coming from Nike (who started as a shoe distribution company), that we will see a an expansion of the Skullcandy brand across different channels. Alden alluded to speakers etc... Huge growth outside of headphones and this is the direction Beats is going also.
OCZ: Bankruptcy Within 6 Months? [View article]
OCZ: Bankruptcy Within 6 Months? [View article]
OCZ: Bankruptcy Within 6 Months? [View article]
OCZ: Bankruptcy Within 6 Months? [View article]
OCZ: Bankruptcy Within 6 Months? [View article]
Skullcandy: Is There Hope For This Former High Flier? [View article]
Skullcandy: Is There Hope For This Former High Flier? [View article]
Skullcandy: Is There Hope For This Former High Flier? [View article]
I wish I had the time to write a couple articles every day as Ashraf does. However, I run a business very similar to Skullcandy and can speak to the branding and marketing and margin and cash flow points with authority. It is a space that I am intimate with and know quite well. I also don't believe having more articles written than the next guy makes anybody more accomplished, and I think even Ashraf would agree with that. I just happen to know this company inside out and I will defend my points, even if I happen to lose 'followers' (which I do not care about incidentally as I don't write articles to make money).
Skullcandy: Is There Hope For This Former High Flier? [View article]
Skullcandy: Is There Hope For This Former High Flier? [View article]
Thats not to say that you aren't a good writer and reasonably entertaining. You probably have a good career in journalism ahead of you but I think you are missing the story here. And margins have bottomed, the CFO said that during the call that they will increase throughout 2013.
Are there risks? Absolutely. But the company is valued on par with many OTC companies that don't even have products for sale, let alone $300m in sales and positive cash flow. To write an article this long and not touch on the glaringly obvious value, is just short sighted. I will check back here again in a year as I don't have time to write more about this company and we will see who is right.
Skullcandy: Is There Hope For This Former High Flier? [View article]
I take it that you have probably never ran a business before, but nothing is simple especially when revenues are near $300m.
Skullcandy: Is There Hope For This Former High Flier? [View article]
Skullcandy: Is There Hope For This Former High Flier? [View article]
I've only seen lemon juice sold among other products in a grocery store.
This article really doesn't offer any new perspective, only rehashes what a few analysts (who coincidentally have never been right about this name before) have to say.
But you have Ashraf agreeing with you, despite him making a major contradictory point about brand equity in his article.
I urge readers to do their own due diligence, starting with Ashraf's stock recommendations, both long and short.
Report back here with your findings... 'nuff said.
Skullcandy: Is There Hope For This Former High Flier? [View article]
This is a stock where you either believe in the story or not. If they pull off the turnaround that I think they will this will be back to the teens in no time and trend much higher than that as they get the multiple that they deserve like a Lululemon, Monster or even a slower growth Nike.
The analysts (who have been wrong from day 1 on this name) will all jump behind the name once the turnaround starts unfolding and the stock is breaking higher. At that point most people have missed the boat already. Its a lot more profitable in the long run when you buy at or near the bottom. Simply put, you can accumulate a lot more shares and even lower your cost average by selling some as it rises.
Skullcandy Q4 2012 Looking Back, Then Forward [View article]