Investing in gun company stocks (company stocks, not rifle stocks)


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bds
March 22, 2012, 04:20 PM
Anybody invest in gun stocks? I stock trade as a hobby and have traded S&W (Nasdaq: SWHC (http://www.google.com/finance?q=SWHC)) and Ruger (NYSE: RGR (http://www.google.com/finance?q=rgr)) in past years.

Recently, S&W went from $3 in December 2011 to over $7+ - http://finance.yahoo.com/q?s=SWHC

As a happy owner of M&P40 and M&P45, glad to see S&W doing well as a company. :D

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rcmodel
March 22, 2012, 04:22 PM
I thought you were buying up all the exhibition grade walnut stock blanks there is left?

That might be a good investment too!

rc

bds
March 22, 2012, 04:27 PM
Doh! I guess that could be confusing for some.

I edited the thread title to clearify.

Thanks!

DesertFox
March 22, 2012, 05:43 PM
Some analysts suggest ammunition manufacturers stocks, moreso than firearms manufacturers.

Pate
March 24, 2012, 04:57 PM
I bought Ruger and S&W before the last election. My broker called me Thursday asking me why I thought they were going to be a good investment even though he felt otherwise.

I'm up over 5x on Ruger and 2x on Smith.

He didn't know about my gun obsession. He now understands.

bds
September 28, 2012, 02:12 AM
Well, just wanted to give you an update.

Technical stock trading (trend/swing trading) is my other hobby from reloading/shooting (I have a full-time day job and it is not stock trading. ;)).

Yes, I am a fan of S&W/M&P and since the beginning of the year, share price has more than doubled (100%+). Will S&W follow the footsteps of Ruger when it went from $10 to $50 (2010 - 2012)? Time will tell.


One year chart (2012) of S&W

http://www.thehighroad.org/attachment.php?attachmentid=172619&stc=1&d=1348808762


Three year chart (2010-2012) of Ruger

http://www.thehighroad.org/attachment.php?attachmentid=172626&stc=1&d=1348820847

Big_E
September 28, 2012, 05:22 AM
That is cool to see how much those stocks have gone up.

I keep telling myself to invest in stocks but I never get around to it. Being in the know of certain hobbies has it's benefits.

Back when AMD and Intel were still competing closely, I tried to convince my dad to buy Intel stock when one of their new processors was about to come out, now they pretty much own the CPU market. Can't remember the prices but we could have made some bank. We also wanted to buy GE stock when it was extremely low a few years ago, now it's about triple.

Now that I am majoring in business I think I will finally get around to it. Do you feel like now is a good time to buy? Obviously Ruger and S&W are very popular right now I haven't given any company much thought lately.

bds
September 28, 2012, 05:25 AM
Some analysts suggest ammunition manufacturers stocks, moreso than firearms manufacturers.
Well, don't know what to say. Here's 3 year chart of ATK (Federal, Speer, CCI)

http://www.thehighroad.org/attachment.php?attachmentid=172624&stc=1&d=1348820670



And here's 3 year chart of OLN (Winchester)

http://www.thehighroad.org/attachment.php?attachmentid=172625&stc=1&d=1348820670

bds
September 28, 2012, 06:07 AM
Now that I am majoring in business I think I will finally get around to it. Do you feel like now is a good time to buy?
That's like asking, "Do you think I can hit a soda can at 1000 yards with my rifle?" Yes, it can be done but it will take some work. ;)

I started this thread to demonstrate that we can invest in companies that are part of our hobby and perhaps share the gains and suffer the losses together. :D

As to the "work" part, learning objectives are:

- Learn to read stock charts
- Learn the primary technical indicators (Moving Averages, RSI, MACD, etc.)
- Identify rebound signals to prepare for long positions
- Set "buy" points
- Identify "hold" signals
- Set "sell/take profit" points
- Swing trade within a channel
- Set "exit" point
- Identify "short" signals to prepare for short positions
- Set "short" points
- Set "cover" points
- Identify rebound signals to prepare for long positions (and repeat)

If you are interested or have questions, PM me.

JustinJ
September 28, 2012, 11:54 AM
I gota wonder if the climbing gun stocks trend may be coming to an end. The market is now so saturated and many who feared not being able to get certain guns down the line have already got them.

Hugo
September 28, 2012, 04:41 PM
ATK makes Federal Ammo, but most of their money comes from Rockets and space launch vehicles. They made the solid rocket boosters for the Space Shuttle so they lost a good contact when they retired the Space Shuttle. Hopefully they will make something else to regularly get Astronauts into space soon.

N003k
September 28, 2012, 05:33 PM
I don't have much free cash at the moment, but, I actually do have some money invested in Smith and Wesson. Wish I had gotten the shares when it was at 3$ a pop, but, I've already got a decent return from them.

351 WINCHESTER
September 28, 2012, 08:17 PM
I want to know why my wife can't have more control over her 401K.

gearhead
September 29, 2012, 01:13 AM
ATK makes Federal Ammo, but most of their money comes from Rockets and space launch vehicles. They made the solid rocket boosters for the Space Shuttle so they lost a good contact when they retired the Space Shuttle. Hopefully they will make something else to regularly get Astronauts into space soon.
Exactly. Ammo manufacturers tend to be more widely diversified defense or chemical companies, both are sectors that aren't doing exceptionally well in today's political and economic climate. I wouldn't necessarily invest in a firearms company that was heavily weighted in military contracts either, such as Colt.

psyopspec
September 29, 2012, 01:16 AM
I'm a full-time options trader. A couple weeks back I made out on a RGR call spread okay when the stock rose after SWHC reported earnings (sectors can sometimes rise or fall depending on peers).

I do invest some money, but most of what I do would not qualify for that term. At this time I wouldn't be looking at either for a longer term investment, but I haven't done due diligence on the companies and my opinion is based on subjective research that, quite frankly, there are just better opportunities out there right now in the market.

thefish
September 29, 2012, 01:56 AM
I'm a full-time options trader. A couple weeks back I made out on a RGR call spread okay when the stock rose after SWHC reported earnings (sectors can sometimes rise or fall depending on peers).

I do invest some money, but most of what I do would not qualify for that term. At this time I wouldn't be looking at either for a longer term investment, but I haven't done due diligence on the companies and my opinion is based on subjective research that, quite frankly, there are just better opportunities out there right now in the market.

Do tell. Where would you be for long term right now?

bds
September 29, 2012, 02:29 AM
Well, I won't post my sentiment on S&W ... time will tell, as always.

I'll check back in about 3-6 months.

Until then, it's short-term swing trading/channel trading time for me.

psyopspec
September 29, 2012, 09:48 AM
Do tell. Where would you be for long term right now?

I need to say up front I do this only for myself and I have no formal education in finance. Therefore, don't do what I do and you'll probably be better off for it. :-)

Again, most of my positions are held for a period of hours, or weeks. I do maintain longer-term investments in my IRA. On this list, AIG is the only one I don't currently own, but am likely to buy into over the next two weeks:
O: Real Estate Investment Trust that pays a monthly dividend.
AAPL: Owned via a long-term call option expiring in 2015, since I don't have enough money in the account to own several shares outright.
FB: I believe the weak/speculative hands in facebook have mostly been shook out. I bought it at 17.71 in early SEP, and their announcement today about running what basically amounts to a gift registry that one can use without leaving the house has me feeling okay about the long-term prospects of the company.
AIG: I'm not pro-bail out. But, the government is almost entirely out of this company as they've become profitable again, and their P/E is hanging at about 3. I wouldn't be surprised if they managed a double in the next year.

I also sell call options against my positions to increase my returns annually.

bds
January 2, 2013, 09:58 AM
Bought back SWHC on the recent dip. Looks like RSI hit bottom and MACD is ready to crossover - Plan to sell again as RSI approaches 70.

http://www.thehighroad.org/attachment.php?attachmentid=177018&stc=1&d=1357135018

wodaddy
January 2, 2013, 01:07 PM
I think SWHC might be a buy after it closes the gap. That big black candle is scary.

bds
January 3, 2013, 11:51 AM
Well, looks like investors/traders are expressing their sentiments with their pocketbooks. Strong buy pressure today.

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