Stock drops for Ruger and S&W !!!

[bersaguy]

I have read a few articles in last couple days that have said the stocks for both Ruger and S&W have dropped in last 2 quarters of 2013 and first 2 quarters of 2014. The articles both said that the panic buying by Americans has made a major slowdown as they are not seeing the drastic laws they were expecting out of Obama's administration.

 

 

It's not that he would not like to see new legislation passed for gun controls but they said Obama has decided that he will never be able to get the gun controls he would like to see in place. Now whether this is just a scheme to get folks to let their guard down while he is planning a big push remains to be seen but it was quoted in one article that Obama was gun salesman of the year from 2008 through 2013.

 

What say you all on this?

[Links2k]

I say that Obama has not attempted a gun grab in six years and will not in the time that he has left. Current events dictate that he has bigger fish to fry. What has occurred is that the gun buying public ( myself included) bought into the scare tactics of gun lobbyist and manufacturers. They knew that things would eventually slow down, but look at the windfall that they've made since 2008. Things are simply returning to normal now.

[leroy]

Looks ta me like Ruger has come back to where it was about a year ago.... Check this out:

http://ycharts.com/companies/RGR

 

Same with smith and wesson....Check this out:

http://ycharts.com/companies/SWHC

 

leroy

[monkeylizard]

Things are simply returning to normal now.

 

Including their stock prices.

 

SWHC normally traded around $4-$6 a few years ago. It started climbing in January 2012 to a high of a little over $15 last June and has been falling ever since. There was nothing that would have caused the value of the company to triple over 18 months. It's at $10.51 now, so I see it further correcting down to the $5-$6 range. Mostly because their financial sheets are pretty flat over this whole time. There's no real reason for the up-tick in the stock price. They saw a decent increase in cash from operations over the last couple of years due to the increased sales, but that's coming back down.

 

I haven't looked at Ruger, but I suspect a similar pattern.

Edited September 5, 2014 by monkeylizard

[BigK]

Makes me wonder how CCI and other .22LR ammo mfg stock is doing.

[Dolomite_supafly]

Makes me wonder how CCI and other .22LR ammo mfg stock is doing.

 

ATK

http://ycharts.com/companies/ATK

ATK Sporting Group's Ammunition business supplies small-caliber ammunition to federal and local law enforcement agencies, military and sport-shooting enthusiasts, and devoted hunters. Our ammunition brands include Blazer, CCI, Estate Cartridge, Federal Premium, Fusion, Speer and Speer Bullets.​

 

OLN

http://ycharts.com/companies/OLN

Better known as Winchester Ammunition.

 

[bersaguy]

I kind of figured a lot of the panic buying was over and things were just going back to normal. Now if we can duct tape the mouths of Mons against this and Moms against that shut we should be ok. I do know that I was not really panic buying but seldom passed up a good deal on a firearm or ammo and have a pretty good stock of both now but will continue to take advantage of a good deal if one presents itself.................jmho and I don't do the stock market thingy. Never had any money I wanted some Wall Street Shark like Bernie Madoff to just take and leave with................jmho

[btq96r]

Gun company stocks are subject to speculation and confidence from investors like any other stock.  I remember the day after President Obama's re-election, gun companies were did pretty well when the Dow Jones droped over 300 points, due to the then fiscal cliff scare.  Investors knew that with a Democratic President re-elected, that gun sales would get a boost and saw that as a safe investment for a bit.  Now that gun sales have tapered off, they want something better to invest in.

 

Just regular market practices at play, nothing out of whack.

[NextExit]

FWIW, Zacks investment research shows SWHC as a strong sell.

[No_0ne]

Including their stock prices.

 

SWHC normally traded around $4-$6 a few years ago. It started climbing in January 2012 to a high of a little over $15 last June and has been falling ever since. There was nothing that would have caused the value of the company to triple over 18 months. It's at $10.51 now, so I see it further correcting down to the $5-$6 range. Mostly because their financial sheets are pretty flat over this whole time. There's no real reason for the up-tick in the stock price. They saw a decent increase in cash from operations over the last couple of years due to the increased sales, but that's coming back down.

 

I haven't looked at Ruger, but I suspect a similar pattern.

 

Ruger has at least one distinction from most other gun-related companies (and most businesses in general), as a policy they operate strictly on a cash and carry model, i.e. the company never incurs debt of any kind and traditionally carries a rather large cash reserve.  This somewhat insulates their company against the cyclical nature of gun sales, the past 5 years have simply added to those reserves.  Gun stocks became poplar during the past few years due to increased sales, the industry as a whole is in a slump now, thus the lower quotes.  Stock prices rarely reflect the true value of a company, but rather reflect investors' opinions of future values.

[mikegideon]

I say that Obama has not attempted a gun grab in six years and will not in the time that he has left. Current events dictate that he has bigger fish to fry. What has occurred is that the gun buying public ( myself included) bought into the scare tactics of gun lobbyist and manufacturers. They knew that things would eventually slow down, but look at the windfall that they've made since 2008. Things are simply returning to normal now.

 

You had a bag over your head, Linky? :) He went balls out for a gun grab after Sandy Hook. The senate just told him to pound sand. My avatar memorializes that day. :)

[Links2k]

You had a bag over your head, Linky? :) He went balls out for a gun grab after Sandy Hook. The senate just told him to pound sand. My avatar memorializes that day. :)

Symbolic. He had his fingers crossed, but Obama knew that the only way that gun control legislation could pass under his administration was to say that he was against it.:)

[Links2k]

Wrong thread Edited September 7, 2014 by LINKS2K

[mikegideon]

Symbolic. He had his fingers crossed, but Obama knew that the only way that gun control legislation could pass under his administration was to say that he was against it. :)

 

He sure did pitch a hissy fit in the Rose Garden when they told him to pound sand. I loved it. I'm keeping that avatar until they purge his sorry ass from the White House.

[vontar]

Yes, but you still can't walk in to a store and find .22 like you could before.

[tnhawk]

My gun purchases have taped off for one reason.  As the number and variety of guns I purchased grew larger, there are fewer than I desire to purchase.  Most of my purchases for a few years were 1911, then smaller guns for ccw. now revolvers.  My recent purchases have been knives, not guns.

[Links2k]

He sure did pitch a hissy fit in the Rose Garden when they told him to pound sand. I loved it. I'm keeping that avatar until they purge his sorry ass from the White House.

The time goes remarkably fast. I worried that I would have a stroke before Bush was gone. I vowed that I wouldn't let Obama or any other politician get me to that point again. Sadly, I see post from lots of stroke candidates in the threads. Politicians are scum and you will die a painful death waiting on them to do right by this country. Edited September 7, 2014 by LINKS2K

[Will Carry]

Stocks going up or down don't mean dittley squat. When stocks go down. Buy. When they go up. Sell. Now might be a good time to buy Ruger and Smith & Wesson stock.

Edited September 7, 2014 by Will Carry

[runco]

Stocks in general are more risky than going to Vegas. I once had a couple thousand dollars not ear marked for nothing, and I decided to play the stock market. Made some money, had a chance to 20x my money, but like a uneducated fool, I missed out. I have done far greater at Texas Holdem! Now my 401K, I just let a professional manage.