Investing in Firearms Industry

[Rifleman1 32]

Has anyone chosen to invest in firearms based stocks. I have located RGR - Sturm Ruger and SWHC - Smith & Wesson Holding Company. Do you know of other companies in the industry and their trading symbols?

 

[DevsAdvocate 112]

Has anyone chosen to invest in firearms based stocks. I have located RGR - Sturm Ruger and SWHC - Smith & Wesson Holding Company. Do you know of other companies in the industry and their trading symbols?

 

 

Isn't Cerberus a big one?

[Krdshrk 3,877]

Olin corporation (OLN) is Winchester.

[hd2000fxdl 422]

While firearms are a Passion for many of us, I don't see them as the best industry to invest in, also the sector they are in can have a larger impact to stock price than the actual company itself at times, IMHO.

 

Harry

[Pew Pew Plates 358]

I had some S&W stock for awhile for giggles, it never went anywhere though. I think I made like $1 at the end of it all LOL

[chris327 30]

I've looked into it there isn't many. Swhc I think would be a good investment at this time. With many l.e. switching to sw from glock I think in a few years it will be the "cops" gun. Meaning individual sales will go up when un knowledged firearm purchasers want it just because the cops use that.

[Krdshrk 3,877]

Taurus: SAO:FJTA4

[hd2000fxdl 422]

I've looked into it there isn't many. Swhc I think would be a good investment at this time. With many l.e. switching to sw from glock I think in a few years it will be the "cops" gun. Meaning individual sales will go up when un knowledged firearm purchasers want it just because the cops use that.

 

While on the surface that sounds good and makes sense, problem is they could be selling guns like hotcakes, but if the yield per unit isn't good that will impact the bottom line, if the bottom line isn't good, the stock isn't going to make you anything.

 

Add in this, analyst are look for company X to make $2.00 a share, but they only make $1.75 a share, now company Z is expected to loose $2.00 a share but only looses $1.75 a share, well company X didn't do as well as they thought but Company Z beat expectations, chances are Z will make you a few buck at these time while you have a chance of loosing money with company x during the same period. All the while company X is in better shape being they are making money while company Z is loosing.

 

All the mood of the market and the sector and who and what is in favor at the time, while fundamentals are very important it's not always the driving factor.

 

Harry

[Rifleman1 32]

Colt, the best known and most well-regarded pistol company in the United States, is 83% owned by Zilkha & Co., which is a New York based banking firm, and is not publically traded. The equally well-known international gun brand of Beretta, is actually Fabbrica d’Armi Pietro Beretta, S.p.A., which is run privately by the Beretta family in Italy, as it has been since 1526.

 

Cerberus Capital Management, L.P., the large diversified private equity partnership, has made a substantial investment in this sector. Good news for this sector could be seen in October of 2009, when Cerebus was planning for the IPO (an initial public offering of stock) of a company under the name of ‘The Freedom Group.’ ‘The Freedom Group’ is a company comprised of the following: Advanced Armament Corp., Bushmaster, Dakota Arms, DPMS, Eotac, H & R, L.C. Smith, NEF, Parker Gun and the Remington Arms Company.

 

Sturm, Ruger & Co. is publically owned (i.e., traded on a stock exchange, in this case the New York Stock Exchange with the ticker: RGR). The only gun company in the world that manufactures products in all four gun categories; i.e., revolvers, pistols, rifles and shotguns.

 

Smith & Wesson is the largest handgun manufacturer in the United States. It is also publically owned, as it had been bought by the UK based firm, Tompkins, PLC, but was later resold to Saf-J-Hammer Corporation for a fraction of the price Tompkins paid for it. It is currently known as the Smith & Wesson Holding Company, whose ticker symbol is SWHC, and is traded on the NASDAQ market.

 

Gun companies have been consistent and solid producers of revenue while their value as an addition to the portfolio of publically traded securities has been mixed. The rapid run-up in the share prices of RGR and SWHC that began right after the 2008 election seems to have passed. Sales of firearms and firearm ammunition and accessories continue to run high.

[Jon 264]

I own some SWHC... hasn't done anything since I bought it.

[Maksim 1,504]

Smith is good company, however their perimeter defense unit has not done jack in the last year or so, as guberment spending dries up. Their firearms division is doing extremely well.

 

Right now there is a disconnect between the company fundamentals and the stock price. In time, those will go hand in hand. The question is when?

 

The market can stay irrational far longer than any of us can stay solvent. So I would not put more than 5% into any of them.

 

 

Disclosure... I own SWHC options.

[Melgamatic 66]

Just use any financial website on one of these symbols, like RGR, and they will give you all the industry comparables:

 

RGR google finance page

 

By the way, the old "invest in companies whose products you like" is a nice concept, but doesn't actually work very well in practice.

[HINCHMAN 4]

The gun industry is not really the best place to park some money. Those stocks dont move...

[Pate 1]

I bought Ruger right before Obama got elected. It's trading at 3 times what I paid for it. I bought S&W at the same time and it just took a huge hit. Maybe the perfect time to buy more.

[Melgamatic 66]

I bought Ruger right before Obama got elected. It's trading at 3 times what I paid for it. I bought S&W at the same time and it just took a huge hit. Maybe the perfect time to buy more.

 

Perhaps, but I'm not sure I would buy any stock of a company with financials that bleak. Negative EPS, negative profit margins and pretty much universal analyst negative/sell outlooks.

 

On the other hand, they're at a 52-week low, nearly, but these days a lot of companies create new 52-week lows all the time.....

[The_Matrix 105]

To support the gun industry----> good idea

 

To make money-----> bad idea

[njpilot 671]

Reviving an old thread here. For those interested, S&W was up 20% yesterday. Currently up 17% this morninig.

[Rifleman1 32]

Reviving an old thread here. For those interested, S&W was up 20% yesterday. Currently up 17% this morninig.

 

Among the companies with shares expected to actively trade in Friday's session are Smith & Wesson Holding Corp. (SWHC).

 

Smith & Wesson's fiscal first-quarter profit jumped more than expected as the gun maker kept posting stronger firearm sales. The company also boosted its full-year guidance, sending shares up 21% to $10.89 in premarket trade.

[Barms 98]

anybody who says SWHC hasnt gone anywhere in a while isnt watching it. it has doubled in the past year.

 

The Cerberus play isnt so much a play on gun companies.. its a play on AMMUNITION. Their goal is to get a monopoly on AMMUNITION.

 

SWHC has a $300 million backlog of orders. I've owned for a while and am buying more even after the runup. I've said it before, guns is what like poker was ten years ago... its becoming a new pastime with tremendous growth.. just look how many gun TV shows there are now... When suburban desk jockeys (like myself) starting getting in that is cleary a sign of a new era..

 

here is a CNBC video from yesterday.. (sorry you have to wait 30 seconds through a commerciall.)

 

http://video.cnbc.com/gallery/?video=3000114651

[NJScott 15]

I'd invest in an ammo company that was publicly-traded before that of a gunmaker.