This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Dumbest Things on Wall Street This Week: March 15

Stocks in this article: BBY GE SKUL SPPI MCD DNKN SBUS

5. Skullcandy's Target Practice

Could the Wall Street analysts tracking headphone seller Skullcandy (SKUL - Get Report) be any less plugged-in?

Skullcandy shareholders got their heads handed to them last Friday after the company reported higher-than-expected fourth-quarter sales, but said it expects a sizable first-quarter loss due to expansion-related expenses and the loss of bankrupt British music retailer HMV as a major customer. Skullcandy said it now sees a loss of 25 to 30 cents per share in the first quarter and a 30% drop in year-over-year revenue, which translates to around $37 million in sales. Shares closed down 22.5% to $5.21 on the news.

In case you were wondering, analysts on average penciled in a tidy quarterly profit of 5 cents a share for the company in Q1 on revenue of $59.8 million.

Talk about tone deaf! Were any of these jokers listening to the company at all? Because when the music stopped and the stock dropped there was not a chair to be found, just a bunch of useless, after-the-fact downgrades.

Investment bank Craig-Hallum cracked SKUL from buy to hold, reducing its price target to $8 from $15. Northland Capital halved its price outlook to $6 from $12.

Not to be outdone, Bank of America/Merrill Lynch slashed its target to $4.50 from $12 a share. And finally Piper Jaffray sliced its forecast to $4 from $7.

They may not want to hear it, but Skullcandy's analysts clearly need more target practice. The only thing they are hitting squarely right now -- aside from their own credibility -- is their client's pocketbooks.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs