Stock Market Investing

[vis-à-vis]

Many of you here, like myself, probably have some sort of investment strategy going on. Whether in the form of a 401(k), IRA, regular mutual fund, etc. So I was wondering if any of you have invested in the firearms industry and how well thats going?

 

[MRIman]

I've got a 401K thats doing great,some IRA's as well.
Dont have much of a "savings acct.",spend it on guns and ammo.
Did buy 13 cases of Wolf last year at $81 shipped. I did sell enough
to get my money back. I'm still sitting on MANY case for free!!!!
If you have the capital,you can make money.
My wife doesn't even mind when I buy guns or ammo anymore.
I just show her how much I made,and buy something else.
Have WAY to many guns,but it's better then money in the bank!!!!!!!

MRI

 

[wooderson]

I always bet 13 and the 0/00 line.

 

[Patriot-Brewer]

IMHO, gun companies don't offer much growth, more like a utility but probably not that stable. My investing in the firearms industry is buying the firearms. I leave my retirement investing towards the usual suspects in the business world that offer growth and/or stability.

Go to nasdaq.com or some other site and check out the gun co.'s price history to get an idea.

See an advisor if you don't trust yourself.

 

[waynesan]

Smith and Wesson Stock

Two years ago S & W sold for about $2.00 per share. It closed today at almost $13.00. In just the last year it has gone from almost $5.00 to nearly $15.00 at one point. I jumped in a couple of months ago and bought 250 shares at a little over 10 so as of today I'm up about 3. Wish I'd got in for a lot two years ago.

 

[atek3]

Only two publically traded US gun companies, SWHC and RGR. RGR's a dog, and not improving fast enough. SWHC is a pure growth play. However, there are strong expectations they'll win a federal military contract built into their current price. If that falls through their stock will be beaten down.

Based on fundamentals SWHC is pretty expensive. For $13 dollars a share to be justified they need to continue their torrid growth while maintaining their margins. Given how slowly the US gun market grows they'll need to gain market share in the civilian and police market. Even with some bold assumptions about their growth prospects, any move above $14/ share is driven by speculation rather than fundamentals, however if you believe in the "greater fool theory" then by all means load up.

Frankly I'd rather buy the S&P 500 index and take the market return.

atek3

 

[30 cal slob]

not many comps in the gun space, and i think there's only one pure play (S&W).

rgr makes some other sporting goods equipment (golf ... yuck) ...and rgr's chart looks like death.

 

[Ohen Cepel]

I think it's too late to buy Smith, I've look at it and will buy when it comes down some.

Ruger is good in that the dividends are pretty good, I bought some and don't have any regrets (yet )

 

[atek3]

>rgr's chart looks like death.

There have been plenty of great value and turnaround stories that apply to a companies with charts that "look like death", unfortunately, RGR doesn't look like one of them...

atek3

 

[g5reality]

Investments

I am a semi retired Financial Planner. I graduated from the Wharton School of Business. I have been invested in Defense stocks that have been very kind to me. OSK & PCP.

OSK Defense segment manufactures heavy- and medium-payload tactical trucks, such as the Heavy Expanded Mobility Tactical Truck, the Heavy Equipment Transporter, the Palletized Load System, the Common Bridge Transporter, and the Logistic Vehicle System to various militaries.

PCP manufactures forged components from titanium and nickel-based alloys for jet engines, including fan discs, compressor discs, turbine discs, seals, spacers, shafts, hubs, and cases for use in power plants and oil and gas industry applications. It also produces various mechanical and structural tubular forged products, and supplies propulsion systems on nuclear submarines and aircraft carriers, as well as forgings for pumps, valves, and structural applications for naval defense applications.

Since July 2005 I am UP 142% with PCP and UP 1% with OSK.

 

[Cellar Dweller]

Ruger hasn't paid a dividend since September 15, 2005, and has not announced plans to resume dividends either:

http://www.ruger.com/Corporate/S-FinicialFacts.html#

The misspelling in the URL is theirs, not mine

 

[JWarren]

I've been an Investment Advisor for 15 years and I've never placed a client into a firearms stock. There's simply a lot of better places to go with the money in most cases.


John

 

[beaucoup ammo]

I'd watch SWHC and buy on the dips. Beretta's contract with the US government runs out this year. If S&W gets it..I'd want to be in place and enjoy the ride up. It is, as already pointed out, fundamentally over priced.

 

[waynesan]

S&W Financials

Looks like S&W is poised to take off. Good financial report.

Gunmaker Smith & Wesson Holding Corp. <SWHC.O> posted a higher quarterly profit and forecast 2007 earnings above analysts' expectations, sending its shares up by about 8 percent.

The company also forecast 2008 earnings that were above analysts' expectations.

Shares of the Springfield, Massachusetts-based company were trading at $13.47 in afternoon trade on the Nasdaq.

Eric Wold, an analyst with Merriman Curhan Ford & Co., said in an email that the rise in the company's share price was driven by a sequential increase in gross margins to 33.8 percent from 31.2 percent in the core Smith & Wesson business during the quarter.

The management is experiencing manufacturing improvements within two months of its acquisition of Thompson/Center Arms Inc., he added.

Wold, who has a "buy" rating on the stock, said Smith & Wesson is continuing to gain market share with handguns through salesforce improvements within the sporting goods channel as well as new product launches into the law enforcement channel.

In addition, recent product introductions with shotguns, hunting rifles and tactical rifles will enable the company to expand into categories where it previously did not have a presence, Wold said.

For 2007, the company expects earnings of 29 cents a share. while analysts were expecting 28 cents, before items.

For 2008, the company forecast earnings of 60 cents a share on sales of about $320 million. Analysts were expecting earnings of 59 cents a share on revenue of $306.5 million.

The company posted third-quarter earnings of 4 cents a share, on sales of $53.9 million. Excluding one-time items, it earned 7 cents a share.

Analysts on average expected the company to report earnings of 3 cents a share, before special items, on revenue of $51.9 million, according to Reuters Estimates. (Reporting by Sreerupa Mitra in Bangalore)

 

[30 cal slob]

S&P futures down 4.5 points as of 7:55 a.m. EDT.
Dow futures down 43 points

yen carry trade continuing to unwind.

flight from risk, which includes small and mid-cap stocks, continues.

 

[Michael Courtney]

I made some good money in Ruger a few years back. I had more confidence in the company with Bill Ruger in charge than I do now. The current price of around 12 is too high to seriously consider buying RGR right now. If the price dipped below 10, it might be a good opportunity to have a good look at the financial reports and consider the performance prospects for the next several years.

However, with the Dems in control of Congress and with a good shot at the presidency in 2008, it probably isn't a good time to own stock in any gun company. I think you need a good bet of 4-8 years of stable or declining gun control laws to invest in a gun company. If a Dem or anti-gun republican takes the White House in 2008, I'd look for the gun-related industries to take a hit of at least 20% in their stock prices.

Michael Courtney

 

[Myself]

I purchased S&W at $1.60 a few years ago. Bought a couple thousand shares when they anounced the 500 mag. I figured Americans like the big cannon and they would do well.

Unfortunatly I sold at about $6.50. I wish I had held it another year. The nice return I made I mostly spent on Smith and Wessons. I figured they were kind of free.

 

[Lovesbeer99]

If you want to invest in firearms, do some research and buy a few collectable guns. Stay away from stocks. Gun prices increase over time for collectables like antique cars or funiture. Just make sure you have a strategy and be patient. If you plan to buy a particular rifle and turn it around in a month, you may be disappointed.

Alternative is to drink a lot of beer and return the cans for the deposit.

Lovesbeer99

 

[MikePGS]

What about buying commodities such as brass since it seems to be going up?