Value Microcaps Motherboard

[abh3vt]

I think one of the single biggest traps we face as value or GARP investors is when GM are under pressure because of increased competition or changes in secular conditions. SKUL was showing higher GM y/y in its last quarter, but the retail situation can change very quickly. Headphones is a tough market, and clearly the consensus view is that forward numbers are (were) too high.

Still, the level of pessimism may be too high at current prices. At some point, the downside will be priced in. If it drops much below 6.50, I'll probably take a small flyer on it. Good moment to cover if your a short in the name (and there were quite a few, even though short interest is lower than peak levels).