Would you buy stock in Ruger or S&W at this point?

B

baccusboy

New member
I've been thinking about this, and wondering if the boat has already sailed or not in terms of making a strong profit from buying Ruger or S&W stock.

Ruger has gone gangbusters. S&W not so much, but it is generally considered a "buy". But I think about things like how it's going in Afghanistan now, that S&W already had a big gun deal, and wonder if they're about to take a hit or not.

I also think in terms of Obama, re-election, and current CCW laws changing everywhere and so many buying guns.

Opinions? I know nothing about stock, but would like to learn.
 
Methinks Ruger stock may be near its peak. There are two rules when it comes to trading in stocks:

1. Buy low.

2. Sell high.
 
In addition to those two rules, if a stock is already popular, you are most likely too late to get in and make a decent profit (some hi-tech stocks excluded)
 
These stocks have definitely peaked for the time being. Here is a fragment of Smith and Wesson's Balance Sheet. The figures are in millions. 2011 and 2012 were showing a "return to normal" decline. In fact, in their 10K statement, Smith and Wesson executives acknowledged the current political climate for their drastic increase in sales, and they also said they expected an unfortunate decline in same.

Anyway, look at their cash and equivalents for 2006. They had maybe $700,000 on hand which isn't much for a corporation like them. '07 and '08 rose but then, '09 and '10 went through the roof. Every bit of that increase is because of O'Bummer. He's a great gun salesman.

.........................Apr10......Apr09....Apr08....Apr07.....Apr06

Cash...................39.9.......39.8.......4.4........ 4.0........ 0.7
Receivables.......... 78.7.......48.2.......56.1.......54.9.......27.4

They've already peaked and that's always a bad time to buy.
 
Two types of stock I am particularily interested in:
#1. Have four legs
#2. Have a barrel and a trigger group attached to it.
 
There are a couple of reasons I'm not big on the gun stocks right now. First, they've already had a good run-up. Second, I think there is a huge glut of guns already out there and not anything that new on the horizon. 99.99% of the guns costing over $300 will never actually wear out from use. They aren't like washing machines that generally need replacing every 7 years.

Also, there are simply better values out there that have some really good potential upside - i.e. natural gas companies.

If the gun manufacturers were smart, they would put all of their resources in lobbying efforts to reverse the '86 machine gun ban. Machine guns wear out much faster than semi-autos - exponentially faster due to rapid build up of heat and abuse. They could charge $2,000 extra for full-auto versions of their guns, even when production costs are only pennies more. They're really missing the boat on this! Ammo manufacturers really need to join in on this too.
 
i think s&w is way over priced. but ruger only trades 20x current earnings with a much better balance sheet then s&w. and i think anyone who has been to a gun show recently knows that gun sales are not cooling down any. if anything guns sales are reaching records. i think they will both go higher but ruger is more deserving of it.
 
i subscribe to zacks investment service, they started following ruger quite awhile go as a buy, its run up nicely. I havent seen them put in a sell order for it, so that means they still see some upside, how much i dont know
 
1) If your goal is long-range financial success, you might do well to find a good financial adviser. I lucked into one 15 or so years ago, and am happy that I did.

2) Mutual funds and such like are less likely to come a cropper.
 
Unless you have inside information or at least spend several hours a day researching I recommend you not buy any stocks directly. Mutual funds are your friend. I know quite a few people who got burned the last few years b/c they thought they knew the ins and outs of the stock market. I effortlessly sailed through the crisis without incident.
 
I agree, mutual funds are really the way to go, unless you have the time to be a day trader, the proper education and desire to study IBD religiously.
 
There is too much competition in the gun industry and attempts to come up with a better idea. I am sure the liability insurance is horrendous. G&A plus Overhead cost have to be high and must be added to the cost of the product.

I would bet for ever commercial sell of a new gun there is two to three purchases of a used product.

Consumers must remember the cost of the materials are miniscule compared to
G&A of 25% (wild guess) and overhead cost beyond 150% in a lot of industry.

In today's economy, I can only recommend utility stock. Just my wild donkey assessment.
 
I'd buy neither. But if I had to buy one it would be RGR. Because of the dividend.

Both stocks are mature. They're not likely to go shooting way up or crashing way down. But RGR looks like a stronger company financially than SWHC. And it pays a dividend.
 
hey're not likely to go shooting way up or crashing way down
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there up 10% after hours trading. might hit there 52 week high tommorrow. to the op, i hope you bought some rgr stock. so many orders on guns they had to stop taking orders.
 
there up 10% after hours trading. might hit there 52 week high tommorrow. to the op, i hope you bought some rgr stock. so many orders on guns they had to stop taking orders
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This is a reason NOT to buy. The mantra is "buy low, sell high". Approaching a 52 week high would seem to violate this at every level.
 
This is a reason NOT to buy. The mantra is "buy low, sell high". Approaching a 52 week high would seem to violate this at every level.
Click to expand...
your right on most stocks that are consistent earners. but companies in a growing industry will continue to go higher until the demand weakens. i'm sure someone is still waiting for apple stock to go low. they will be waiting for a long time. as for ruger. it will continue to go higher until there demand slows. and any one who has been following the threads here knows gun sales are not slowing.
 
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