NEW BULLISH Plays
Skullcandy, Inc. - SKUL - close: 8.66 change: +0.18
Stop Loss: 8.45
Current Gain/Loss: unopened
Entry on November xx at $ xx.xx
Listed on November 29, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 702 thousand
New Positions: Yes, see below
Why We Like It:
SKUL makes headgear and audio accessories (a.k.a. earphones). The stock broke down under major support near $12.00 early in November. The sell-off accelerated following a disappointing earnings report and lowered earnings guidance. Yet now it looks like SKUL may have found a bottom. The stock could see a short squeeze. The most recent data listed short interest at 42% of the very small 15.6 million-share float.
Aggressive traders could launch positions now. I am suggesting a trigger to open bullish positions at $9.05. If triggered I am setting our multi-week target at $11.50.
Trigger @ 9.05
Suggested Position: buy SKUL stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the 2013 Jan $10 call (SKUL1319a10) current ask $0.35