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

I subscribe to a belief that all stock is speculative, since buying a stock is no different than buying any other collectors item in the hope that it will someday be worth more than you paid for it.

When you buy a share of stock you get nothing but hope (unless you buy a dividend stock). That hope is that others will later on like the stock more than you did and be willing to pay you more than you paid for it when you want to sell. You get nothing else when you buy a stock. Unless you can buy a majority ownership in a company and then you likely don't need or want advice about stocks from TFL posters.

Hope runs out and stock prices flatten and fall. We are at the end of the RGR hope rope. Not the beginning. And SWHC has crappy financials.

There is a place for stocks in my portfolio. But I keep it in it's place. I don't keep RGR or SWHC anywhere.

**disclaimer**All my advice is worth exactly what you paid for it.
 
lawnboy. i agree with everything you are saying. i know rgr has had a good run but the company is not trading at ridiculously high times earnings and they are definitely growing in terms of revenue and profit. this will not last forever but for the foreseeable future gun sales are going very strong and if more guns are sold by ruger every quarter there stock will continue to rise. as for swhc, they are not run nearly as swell as rgr and would not own there stock.
 
In my portfolio, I reserve 5% for stocks upon which I wish to speculate. Those are stocks that I believe in and that I believe the market doesn't fully appreciate. Included in my basket is RGR.

I disagree that RGR is a mature stock. How can you not love a company like this:
Gross Profit: 2011=$111.76M, 2010=83.98M, 2009=87.61M, 2008=42.75M

Total debt=$0

Return on average equity=31.77%

I don't see any let-up in the sale of guns; certainly not at my house, and RGR is getting a big share of the sales. I think it's a buy.
 
Ruger's stock just hit an all time high, and as such, violates the old rules of buy low and sell high. I'd hold off for now unless things start to look certain that Obama is getting another 4 years.
 
It hit an all-time high of $23.78 in late April, 2011. Would that have been a time to not buy? How about its subsequent all-time high of $35.53 in late August, 2011? It has hit all-time highs dozens of times in the past, only to go higher yet.

For reference, as I type this, the stock sells for $47.48.
 
Background: I play with some money I rolled over into an IRA and am 100% stocks. It's only about $6k, but I tell myself I'm practicing day trading for one day when I make a lot of money and can hopefully do it full time. A couple weeks ago, I bought Bank of America at $8.03 on a hunch and sold it a couple days ago at $10.10. I then turned around and bought SWHC and made over $400. I sold it earlier today because I refuse to look a gift horse in the mouth. I believe it has a good amount of upside, but it just depends on what your motive is.

Decision: Either would be better than most other stocks you could pick now. If you plan on turning a quick dollar and get out in a couple weeks, it's a bad idea in the current world financial market. However, if you are willing to hold onto it, SWHC is probably a good play. They have the name recognition of Ruger, but a much more extensive product line to varying budgets. And personally, I know a whole lot more LEO's that carry S&W's than Rugers. Also, the younger generation is probably more inclined to buy a S&W, which would replace a lot of older Rugers.

You should also keep an eye on video game developers like EA, ATVI, and TTWO. I have several reasons, but this isn't really the time to divulge. Wait 9-12 months before you move on those though.
 
However, if you are willing to hold onto it, SWHC is probably a good play.
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Because why? Their debt, their high P/E or their operating loss for their last fiscal year?

I could name dozens of stocks that are a much better long-term play than SWHC.
 
Their growth rates percentages compared to the industry and the S&P 500, along with their majorly-improving debt to equity ratio over the past 3 years. They also beat (slightly) their and analysts' projections in terms of sales in Q4, and have forecasted strong numbers for FY12.

Admittedly their P/E is high, but their other statistics speak just as loudly.
 
Just to add, Ruger has stopped taking orders according to a news report on foxnews.com on Thursday. They have taken over 1 million orders to date this year. How that will effect stock prices, who knows.
 
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