TheStreetSweeper releases cautious reports on ZAGG, Inc. (ZAGG)

August 23, 2016 10:38 AM EDT

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TheStreetSweeper releases cautious reports on ZAGG, Inc. (NASDAQ: ZAGG):

*Zagg set itself up for failure by exaggerating its acquisition's sales.
*Months after touting the wisdom of the Mophie acquisition, the real numbers came out. They were $24 million to $44 million below those estimated by management.
*With a history of operating losses and much lower sales numbers than touted, the Mophie segment faces likely insurmountable odds of delivering ~70% of the year's sales in just six months.
*Poor value of the Mophie acquisition is further evidenced by Zagg paying $65 million to take over its debt.
*Mohpie's gross margins are far worse than trumpeted ... just 3%-17% in the past 10 quarters.
*Rival Anker is the leading brand shown on Amazon.
*Pokemon Go searches on Google Trends have dropped dramatically.
*Additional signs of Pokemon weakness point to future disappointments for Zagg.
*Zagg can't depend on significant sales from the upcoming iPhone7, which is expected to attract far fewer buyers than the historic iPhone6.


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