Back in 2003, Rick Alden was listening to his portable music player while on a chairlift in Park City, Utah. It was at that moment that he hatched the idea for premium headphones for those who liked extreme sports. He wasted little time and started up Skullcandy (NASDAQ:SKUL).
It was definitely a smart move — the company priced its IPO late Tuesday at $20, above its $17-$19 expected price range, giving it a valuation of $189 million. In Wednesday’s trading, the shares were up nearly 10% to $21.90.
Despite persistent unemployment in the U.S., Skullcandy seems to have little trouble finding customers willing to pay $100 to $200 for headphones. So, it should be no surprise that investors are interested. Read