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Ramsburg is a seasoned trader with over 17 years of experience trading the US and European Markets, he was the pioneer of Technical Analysis in Portugal (his home country) during the 90's where he used to run Portugal's biggest financial website that he later sold during the dot com bubble, he's... More
  • Hot Stocks On Radar: SKUL 0 comments
    Aug 28, 2012 1:45 PM | about stocks: SKUL, ZAGG

    Hi guys!

    I'm finally back home after a few days in Marbella (South of Spain), while I was there I've noticed an interesting trend among the young (cool) people: headphones with Skulls, literally all over the place… lol… what does it have to do with Hot Stocks on Radar? well, after a little research, I understood that trend is far more extensive than just Marbella, it's global! I also discovered that Skullcandy is a public company, growing exponentially and already a mid-cap, and by the way… it's hot right now, here it is:

    Hot Stock # 1

    Name: Skullcandy, Inc.
    Ticker: SKUL
    Market Cap: 434M
    Profile: Skullcandy, Inc. develops and distributes headphones and other audio accessories to retailers in the United States and to distributors internationally. Its headphone products include in ear, on ear, over ear, and gaming headphones. The company also offers speaker docks, mobile device cases, apparel, and other accessories. The company markets its products under the Skullcandy and Astro Gaming, as well as 2XL brands. Skullcandy, Inc. sells its products through specialty, consumer electronics, mass, sporting goods, and mobile phone retailers, as well as through Websites and third party distributors. The company was founded in 2003 and is based in Park City, Utah.
    Website: http://www.skullcandy.com

    Chart:
    (click to enlarge)

    • Notes: SKUL is a fast growing company, sales are increasing exponentially, their products are high end / high margin, and it's already (quite) profitable. I'm not going deep on fundamentals, but SKUL trades with a 20X P/E ttm, estimates are probably conservative and show only 11X P/E FY13 which is almost ridiculous if you consider it's a true growth stock (with actual past growth near 50% CAGR) and prospective growth around 35% CAGR… zero long term debt and healthy current ratio…
      From a technical perspective, the sign is not yet in place despite a few hot symptoms, volume is building up during the past weeks, and SKUL may attempt a breakout soon, if that happens (near 16.50$) the theoretical projection will stand around 24$, there's a few resistances along the way and probably will be a throwback during the process, so there's lots of ways to play this… I'm already holding a small position on this one, got to buy first and ask questions later ;)

    Happy Trading Guys!

    Ramsburg

    Disclosure: I am long SKUL.

    Themes: Growth, quick-picks-lists Stocks: SKUL, ZAGG
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