Any good firearm related stocks to invest in?

[PaladinX13]

If looking at a long-term view, able to stomach some ups and downs so long as there is a predominately upward trend, are there and publically held companies involved in firearms or shooting sports worth investing it? The key being, this is an investment into something I can believe in, not simply a money-making scheme.

 

[Michael Courtney]

I owned stock in Ruger firearms for several years and made about 30% in the stocks appreciation, plus whatever divedends they paid over that period. But I bought right after the S&W fiasco, and RGR was a good bet then. Ruger still has sound financials and business philosophy, and the two year outlook is positive from a standpoint of federal legislation and lawsuits.

On the other hand, the longer term outlook of any gun company is at risk of collapse due to government regulation and liability suits unless they have a much larger share of the military and law enforcement pie than Ruger.

RGR is probably a sound buy at the current price under $7.00 a share, but don't get greedy, pick a price point to sell at and sell when it reaches $9.00 or $10.00 a share.

Michael Courtney

 

[xd45gaper]

Ruger just posted a loss this last quater. not sure about Smith. if i where you i would look in to General Dynamics.

 

[PaladinX13]

Thanks for the tips... are those the only two publically held gun companies?

 

[Justin]

Ruger stock prices
Smith & Wesson, aka Saf T Hammer stock prices.

*shrugs*

Meh.

I'm not a stock broker or professional trader. But in my experience, it's better to invest in diversified mutual funds than to put money in companies that you pick. If you just want to own some Ruger or Smith to say you do, then go for it, but there are probably better choices out there. Also, stock advice that you get on the web is generally worth even less than what you pay for it, so if you're seriously interested in investing, you should consult a professional.

 

[Shootcraps]

I think I read somewhere that Colt was getting ready to make an IPO????

 

[Rumpled]

Olin is publicly traded, and Colt defense might do an IPO.

As far as mutual funds and professionals - 85% of these professionals cannot beat the S&P 500, so for that I mostly invest in the 500.

I own both Ruger and S&W. Ruger recently cut their dividend, S&W doesn't have a dividend.. I don't think either one is really a good investment, but I invested kinda as a measure of support.

 

[taliv]

investing in individual stocks, particularly in industries that are prone to dramatic changes with the stroke of a pen, because you believe in something, is a phenomenally bad idea.

however, there are mutual funds out there that invest only in 'good' companies (depending on your definition of good, which could mean christian, green, etc). offhand, i couldn't tell you whether they make much money or not.

 

[Telperion]

Before you buy any firearms stocks, I recommend you read An Analysis of the US Firearms Industry. It could be said that NJIT is not without its agenda in this area, being involved the "smart gun" fiasco, but I think the analysis is accurate. The domestic gun business is not a growth industry.

 

[xsnydx]

Investing

I have been investing a lot over the last few years and researching these kinds of things is a hobby of mine. I agree with Justin and Rumpled, going with some sort of a fund is your best bet...especially the S&P 500 or Vanguard 500 Index. Investing in single companies is risky. It's hard to beat the market on a regular basis, so for long term it's better to just go with the market, which is what the 500's do. I hope this helps...

-xsnydx

 

[Michael Courtney]

Diversification can be achieved via a number of carefully researched individual stocks, rather than depending on a mutual fund.

RGR is not a good buy because of its long term growth potential, but because it is currently undervalued. It makes sense to look only at a quarter or two or a technology stock, but not of a sporting good company. Considering RGR's performance over the last five years, it is a good buy at under $7.00 per share, but would not be a good buy at $9.00 or $10.00 a share.

I would not recommend that anyone put more than 5% of their investments in RGR, but as a part of a diversified investment plan, RGR is a good buy at under $7.00 if you make a definite committment to sell at a fixed point between $9.00 and $10.00.

Michael Courtney