Is ZAGG on the Up-and-Up?http://www.fool.com/investing/general/2012/01/27/is-zagg-on-the-up-and-up.aspx Rick Aristotle Munarriz
January 27, 2012
There doesn't appear to be a shortage of naysayers when it comes to gadgetry accessories specialist ZAGG (Nasdaq: ZAGG ) .
The company behind the patented invisibleSHIELD protective screen coverings for smartphones and tablets was the target of a Citron bearish report this past summer.
"Management's track record is laced with blatant self-dealing, execution failures, and disclosure omissions," conclude the often astute worrywarts at Citron.
The skepticism hasn't diminished over the months that have followed.
There were a whopping 8.3 million shares sold short as of mid-January, and that's a huge number when you consider that there are just 29.6 million shares outstanding.
ZAGG's history of flops outside of the invisibleSHIELD cash cow, accounting hiccups, and cash flow woes has made the accessories provider an easy target for the critics. I awakened one of the more vocal ZAGG worrywarts when I singled out the stock as one of five stocks under $10 worth buying on Monday.
I've been writing that monthly column for 11 years, and naturally there will be plenty of disagreements. A stock isn't trading in the single digits because it's a Wall Street darling. After three years of rallying markets, good luck finding growing and profitable companies that are still trading below $10.
However, Stone Street Advisors came off a bit more incensed than those who typically disagree with my opinion.
It could be that the stock moved higher that day: Stone Street Advisors reflected on the stock's 5% pop on