Curious about Ruger stock...


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Surefire
August 15, 2006, 08:44 PM
This is only slightly firearms related, but I don't see any other forums that match this question.

Any of you own shares of Ruger stock? If so, what is your opinion of the long-term growth of Ruger?

I'm thinking of picking some up, given that the price is low and it looks like there is room for growth. My financial advisor is giving me a slightly positive view on the stock.

I own many Ruger firearms, and I think the company will be good long-term (which is what I am looking towards). The company also creates cast metal, which gives them a second line a products.

To keep this firearms related, let me ask this question: what new kinds of firearms do you think Ruger will come out with in late 2006 and 2007? Will we see any additions to the double-action line of revolvers? I have been hoping for new variations of the GP 100 and SP 101 for years, plus I'd like to see something in between GP 100 and Super Redhawk size.

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Werewolf
August 15, 2006, 09:39 PM
It's been a while since I looked into Ruger stock but when I did it ran in the $7-$9 range and had for years. The biggest benefit was the dividend they pay out. It's really big - at the time about 40% of the selling price.

Now that's a really good deal but you've essentially got to own the stock for 3 years to get it. Has to do with the the dates of record, etc that they attach to the dividend.

If they're still doing that huge dividend thing and you're really into long term holding and your Financial Advisor doesn't object go for it.

ACP230
August 15, 2006, 09:41 PM
There's no dividend at the moment.
It was nice while it lasted.

Surefire
August 15, 2006, 09:47 PM
IIRC, on Yahoo Finance and MSN Money they list the dividends as 40 cents per share....

It sounds like Ruger cancelled them if I understand the post above though.

I'm not a dividend person, my primary concern is long term growth. I'd like the stock to appreciate over the long term.

Sunray
August 15, 2006, 10:49 PM
"...like the stock to appreciate over the long term..." What does their financial statement say? As a shareholder you should be getting one annually. Without knowing for sure, I suspect no firearms manufacturer's stock increases in value much. I'd be looking at the past performance of the stock. If it hasn't moved much since the ISO, it likely won't in the future.
They do investment castings. That's not the same as a regular casting. Mind you, lots of manufactured stuff has investment castings in it. A lot of vehicle parts and machines are made with investment castings.

Knotthead
August 16, 2006, 06:43 AM
I bought a few shares of Ruger stock shortly after 9/11, which boosted the share price for a while, and they paid a pretty good dividend at the time, with a yield of about 6%. However, they were paying out more in dividends than they were reporting as a profit and after seeing this go on for a year or so I sold before they cut or eliminated the dividend. When they slashed the dividend in half the stock price fell significantly, and apparently last year they eliminated it. This is a slow growth industry, as the products it produces have a very long life, and I believe Ruger paid a price in growth by not addressing the concealed carry market, which has been very hot over the last decade. You would think that the company that once produced the titanium club heads for Big Bertha drivers would use that technology to produce lighter handguns for this rapidly growing segment of the market, but for some reason they chose not to. While I like and enjoy their products, I canít see them as a good investment if they continue to ignore opportunities like this.

loadedround
August 16, 2006, 09:12 AM
I bought ten shares of Ruger stock about two years ago to hang the certificate in my gun room as a conversation piece and to support Ruger. To purchase Ruger stock as a long range investment is a very poor idea and the purchase of any gun company stock is also very poor considering the political environment in this country. Just suppose(and I mean jus that) that the "antis" get conrol of both houses in the next election along with Hillary, or some other liberal as president...where will the gun manufacturers be five years afterwards? My friends, you have just purchased some very expensive toilet paper!

buy guns
August 16, 2006, 01:59 PM
their annual income has been steadily decreasing.

they stopped issuing dividends in 2005 because they couldn't afford it.

literally, the first lines of their 2004 and 2005 reports stated that it was a disappointing year.

for the first quarter of 2005, their net income was 3.7 million. for the first quarter of 2006, their net income was 1.4 million. 2005 was a disappointing year, it doesn't look like 2006 is going to be any better.

you're concerned about long term growth? scottrade lists their current growth rate at -10%.

and even though their casting sales increasd 28% from the first quarter of 2005, that part of their business is still operating at a loss.

all of that is bad news to wall street.

is your financial advisor also your broker?

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