4 Young-Gun Stocks Trying to Stay Cool

These newer stocks on the block target teens, which isn't easy

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Skullcandy

skullcandy185 4 Young Gun Stocks Trying to Stay CoolTotal Return: -74%

The first wannabe-cool company that comes to mind: Skullcandy (SKUL). The headphone-maker that calls itself a unique collision of music, fashion and action sports hit the market in the summer of 2011.

It has been in a race to the bottom ever since.

Skullcandy has been suffering from slipping sales, and its earnings are expected to decline 87% this fiscal year. In the most recent quarter, it took a brutal loss of 27 cents per share vs. a profit in the year-ago period … and all that woe has translated to a 32% slide for SKUL year-to-date.

One big issue for the brand: a huge pile of competitors. Apple (AAPL) makes earbuds, as does Dr. Dre, Bose, Sony (SNE) and more. Plus, the company just seems to be trying a little too hard between its skull-shaped logo, celebrity “brand ambassadors,” bright colors, eye-catching patterns and custom designs.

It seems like there’s cool, and then there’s … well, too cool. The latter is a recipe for a fad, not a successful company.


Article printed from InvestorPlace Media, http://investorplace.com/2013/06/4-young-gun-stocks-trying-to-stay-cool/.

©2014 InvestorPlace Media, LLC

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