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David Foster

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  • Why I Went Long Skullcandy [View article]
    Article Follow-Up: I have for the time being closed my remaining position in SKUL as of early Friday morning. SKUL will remain on my watch list for some time as I believe that there will be another opportunity to take a shot at the turn around. I was satisfied with the 4th quarter earnings report for 2012. A net sales increase of 28.1% to $297.7 million. What I didn’t see coming was the complete reorganization of the company under Rick Alden that occurred so quickly. This really dampened the 2012 earnings report and the immediate share price but also provides a future for the company. Alden has instituted new plans beginning with the first quarter of 2013 including new product development and a move to a new packaging design. This is going to have a very negative effect on the company’s bottom line for at least the first two quarters of 2013. Taking a $.25 to $.30 loss per share in the first quarter of 2013 as they are implemented. But there are positives for the future of this company and I would encourage others to keep an eye on this company as the plan moves forward. Keep in mind this is a company that has a small cash position and no outstanding borrowings. It wouldn’t surprise me if this stock gets into the $4 range and stalls for a significant period of time. I look for entry points for stocks like these. I personally took a loss on half of my initial position in SKUL. I’ll continue to write articles periodically for Seeking Alpha and I am always open to reader debate on stocks I feel have potential. I am not always right but have a significant personal track record for long term success and believe in my methods of selection.
    Mar 10 04:30 PM | 2 Likes Like |Link to Comment
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