Savvy Trades and Investments

[dickmilde]

HEAR The current price direction is down with plenty of resistance around 25-26 so I would stay away from this. Head phones are a mature product with very low barriers to entry for many manufacturers that are already producing similar products. I don't really follow this market so anything I say is a guess. But it smells a lot like a fad with little substance that makes their stuff provide a measurable difference. It's so easy for a different provider to become the preferred source. But, like I said... I don't really know. In 6 months if somebody else provides the fad these earnings estimates will evaporate and you will learn about it after the fact. Their cost of revenue is already on the high side which is an indication that they are in a mature market where it's difficult to raise prices. On the other hand they might be the leader in their field for many years... even so the margins will probably deteriorate due to competition.

To answer your question... I see a down trend with plenty of resistance less than 20% above the current price. If it gets above the resistance I would have to reconsider the situation at that time.