ZAGG Incorporated (ZAGG)

[trendseeker]

Last 3 days have shown significant distribution on relatively high volume. Glad I took some money off the table when it was in the 6's but I'm hanging on to most of my shares through this pull back. I agree that there may be a bump up in PPS when NASDAQ listing occurs.

I think that for many investors, given the runup in price, current PE ratio, and having interesting things in the pipeline but not yet ready prime time or contributing to revenue, the stock has entered a "show me" period.

For example, show us the real Appspace, not the beta version. The beta version (at least the video of it I saw) looks promising, sort of like what the website Pandora does for you - tracks the things you like and recommends things that users with similar tastes like. But the key is to get enough users, lots of users, so that it can differentiate between different types of users and their specific tastes. That needs to happen for it to be successful.

Show us the ZaggBox. "Game changer" sounds interesting but PPS isn't going to go up until people can see what it is and form an opinion about what it will do for future earnings.

I noticed on their website they now have Zagg headphones. I hope to try some sometime. I hope they're really good. But Bose, Sony, and others already make some damn good headphones. If there's not something different, better, or greater value about Zagg headphones, if they're just putting out "me too" type products, that's not a growth strategy. They don't yet have strong enough brand recognition that they can just slap a Zagg label on an average pair of headphones and expect to sell millions of them.

I've got a pair of Z-Buds. I like them but I can't say they that I'd necessarily buy another pair if I lost them. They have some nice design innovations but I thought the sound quality was very similar to other ear buds I've used.

I think price could drift into the low 4's during this pullback. Probably a good time to buy or add shares since I think 4 is as low as this is likely to go even with a severe pullback in the overall market. But it's likely to take something really compelling to drive PPS back into the 7's in the near term.