Quantcast
  1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Smith & Wesson misfires on Wall Street

Discussion in 'General Gun Discussions' started by Reloadron, Sep 9, 2013.

Thread Status:
Not open for further replies.
  1. Reloadron
    • Contributing Member

    Reloadron Member

    Joined:
    Jul 6, 2012
    Messages:
    6,659
    Location:
    Cleveland, Ohio USA
    The above quote taken in part from here.

    While it has regained some of that 10% today (up about 3%) overall gun sales seem to be slowing, that includes Ruger traded under RGR. During Clinton's now defunct AWB with the additional emphasis on handguns (magazine capacities) we saw the same thing happen. Now slowly it seems gun sales in general are slowing. It should be interesting to see how this effects overall production and production goals.

    Ron
     
  2. Outlaw Man

    Outlaw Man Member

    Joined:
    Jan 18, 2007
    Messages:
    1,870
    Location:
    Cleaning my guns.
    I think that correlates to what we're seeing in the stores. Almost any firearm is available from multiple sources, save the custom models and such.

    I don't know if any of the ammo companies are publicly traded, but I would assume they're still seeing high numbers.
     
  3. Midwest

    Midwest Member

    Joined:
    Sep 13, 2011
    Messages:
    2,542
    Location:
    Kentucky
    If people can't find ammo or have to pay through the nose for it...it will slow down firearms sales. Whats the point in buying a gun when you can't find ammo for it?
     
  4. ATLDave

    ATLDave Member

    Joined:
    Aug 30, 2011
    Messages:
    3,128
    Gun buyers greatly accelerated their purchasing during the panic. They pre-consumed what they would be buying right now.
     
  5. Midwest

    Midwest Member

    Joined:
    Sep 13, 2011
    Messages:
    2,542
    Location:
    Kentucky
  6. Reloadron
    • Contributing Member

    Reloadron Member

    Joined:
    Jul 6, 2012
    Messages:
    6,659
    Location:
    Cleveland, Ohio USA
    When you could not find a single round of 5.56 short of paying a buck a round it didn't stop those wanting an AR from paying $1,200 to $1,500 for what were $800 AR rifles on gun broker and the like. The idea being that people were buying the things up and not just buying them but buying at inflated prices. Only once it was apparent that Obama wasn't going to get his desired AWB did prices on the guns start to come down.

    I really don't know. Looking back to the Clinton years what we saw was a total saturation of the market and then the buying slowed down. I tend to agree with ATLDAVE:

    Ron
     
  7. Queen_of_Thunder

    Queen_of_Thunder member

    Joined:
    Jul 28, 2012
    Messages:
    1,881
    Location:
    Where God purifies the soul. The West Texas desert
    So where are ths revolvers. I've got 5 on my list and 3 are Smith's but can't find them.
     
    Last edited: Sep 9, 2013
  8. Reloadron
    • Contributing Member

    Reloadron Member

    Joined:
    Jul 6, 2012
    Messages:
    6,659
    Location:
    Cleveland, Ohio USA
    I guess we will have to ask S&W about that. :)

    Ron
     
  9. TRX

    TRX Member

    Joined:
    Sep 5, 2008
    Messages:
    967
    Location:
    Central Arkansas
    Hopefullly they'll build up some inventory for the next election panic.
     
  10. gym

    gym member

    Joined:
    Dec 9, 2007
    Messages:
    5,903
    It's a pullback, "to be expected", it may be a buying opportunity. But in general I don't like stocks at all, even after trading for 12 years full time out of an office, then the house. I think it's a dangerous time to be in the market, unless you can afford to lose what you are playing with.
    The computer models have taken over, and it is much harder to get in and out than it used to be.
    There is no reason to be hitting all time highs with half the country out of work, and interest rates starting to effect the housing market again.
    Guns may become quite valuable again if we tank. I for one am out, on the sidelines, in cash, for the first time since the 70's.
    I see the same guys cheering on the market that got slammed every time this same nonsense happens.
     
  11. PWGUNNY

    PWGUNNY Member

    Joined:
    Jun 10, 2013
    Messages:
    38
    Location:
    Oyster Bay, LI and Big Bass Lake,PA
    The forecast, which is just an estimate, was lowered by S&W due to having to halt production for a few days while making an internal system change.
     
  12. Reloadron
    • Contributing Member

    Reloadron Member

    Joined:
    Jul 6, 2012
    Messages:
    6,659
    Location:
    Cleveland, Ohio USA
    I can agree with that. As my wife and I approached retirement we became very conservative with investing. Today what was years ago a large investment portfolio is now a few mutual funds with modest investments. I like being retired and have no plans for a need to return to work as it would interfere with my range time. :)

    I enjoy following the market but invest? No way, those days are long over.

    Ron
     
  13. YZ

    YZ member

    Joined:
    Nov 10, 2012
    Messages:
    1,066
    Location:
    Midwest
    I bought S&W shares when they were low. They are still undervalued, I think. Much cheaper than Ruger. I am OK with a recession cycle. I can enjoy relative peace while it lasts, while hedging my bets in the gun sector. The bad moon may rise again, and the arms manufacturers will get busy.
     
  14. Old Fuff

    Old Fuff Member

    Joined:
    Dec 24, 2002
    Messages:
    23,908
    Location:
    Arizona
    I don't believe that any of the major firearms makers (and Smith & Wesson in particular) have come close to filling all of the backorders they have on their books.

    And if our government in Washington does something really, really stupid with the current events in the Middle East the demand for guns and ammunition might go through the roof again.
     
  15. sig228

    sig228 Member

    Joined:
    Sep 24, 2006
    Messages:
    975
    Location:
    South Florida
    I sold my Smith shares Friday, put $$ into AAPL and did quite well today :)
     
  16. AlexanderA

    AlexanderA Member

    Joined:
    Feb 27, 2011
    Messages:
    2,861
    Location:
    Virginia
    Exploiting periodic buying panics is not a good long-range business plan for the gun companies. In general, companies whose share prices do well are those which innovate. But here's the problem for the gun industry: it represents a mature technology in which products haven't essentially changed since the days of John Moses Browning. Not only that, but the products, with reasonable care, last practically forever. Unless a gun company invents a directed-energy weapon, for example, I wouldn't invest in it.
     
  17. Bullz

    Bullz Member

    Joined:
    Jan 20, 2012
    Messages:
    91
    Location:
    Ohio
    I have to agree with AlexanderA... That's the question that always needs to be answered... How much growth potential is there in the company/stock? Sometimes there's an anomaly and the valuation is very low or very high. Other times, you have to answer the previous question.

    With firearms, who are your target consumers? And how much can you get them to buy? Outside of the USA, it's almost exclusively government bodies and private contractors who will buy with any volume that could impact the bottom line. Lots of competition there and the contracts can be game changers for one company or another.

    In the USA, and like other companies, they need to find niche markets for growth, e.g. ccw market. What else is there? convincing people they need defensive carbines and defense shotguns... there might be a couple other things if I got creative. Hunter buying will stay consistent... possibly could start marketing rifles like golf clubs and "innovating" with a new model every year...

    Anyway, point is that it IS a mature market with a very mature product. Two years ago when S&W was trading for $2.50, I started integrating it as a part of my daily portfolio and played with it until it was about $9.80. I've been out of it since January. There could still be plenty of movement potential but I think the "sure thing" phase is over. Any near term future involvement with the stock on my part will be politically driven as I believe that is what will drive the price up or down for the foreseeable future. my 2 cents... and it's not even worth that. HA
     
  18. grimjaw

    grimjaw Member

    Joined:
    May 9, 2005
    Messages:
    3,358
    Location:
    Arkansas
    Building on posts #16 & #17, given the restrictions on firearms ownership in other countries, it's not like the gun companies can expect to grow much in foreign markets, either.
     
  19. jakk280rem

    jakk280rem Member

    Joined:
    Feb 12, 2007
    Messages:
    1,323
    Location:
    Astoria, OR
    Seems like a fairly standard market correction. Only reason this made news is someone thought a story about an evil gun company dropping its stock price would make their readers feel all warm and fuzzy. Got to justify all those fund managers that dropped gun related stocks after Newtown.
     
Thread Status:
Not open for further replies.

Share This Page