Skullcandy - SKUL - close: 16.51 change: +0.13

Stop Loss: 15.75
Target(s): 19.70
Current Gain/Loss: unopened
Time Frame: up to its May earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this headphone and audio accessory maker could see a big short squeeze soon. The most recent data listed short interest at 123% of the very small 8.3 million-share float. Yes. That was 123%.

The recent breakout over resistance near $16.00 and its exponential 200-dma should have bears a little panicked. The high today was $16.74. I am suggesting a trigger to open bullish positions at $16.75. Our target is $19.70. More aggressive traders could aim higher. FYI: The Point & Figure chart for SKUL is bullish with a long-term $24.00 target.

Trigger @ $16.75

Suggested Position: buy SKUL stock @ (trigger)

- or -

buy the May $17.50 call (SKUL1219E17.5) current ask $0.65

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/09/12 (unconfirmed)
Average Daily Volume = 453 thousand
Listed on April 03, 2011