There's a lot of inefficiency in the U.S. gun market. A manufacturer like Ruger makes the gun; then they sell it to a distributor; then it's sold to a wholesaler; then to a retailer; and finally to a customer. After Ruger sells the gun, the price is marked up three or more times, so Ruger only has a small piece of the action. To ramp up profits, Ruger needs to pick up some of the downstream price markup. Why not buy one of those distributors/wholesalers/retailers ... or cut them out like Wal-Mart? There doesn't look like any law against it.
You're wasting your time Granny. Nobody on this board anymore but morons. No gun or business knowledge at all as evidenced by their morinic posts. They will be gone forever once RGR tanks and spends the next years sitting at a much lower price...
That's pretty optimistic. I'm not totally comfortable with any investment thesis that includes Mayans, the end of the world, and zombie vampires.
I can see RGR at 20-25x eps of 3.00 this year, though.
If it turns out that this demand is not really obama-driven, but a larger shift in our society, then we could see RGR break a hundred in two or three years, IMO.
Hedge funds, daytraders, and hot money should push RGR to $150
Very few shares outstanding, and zero debt. Hot products, and a news story "Obama, Mayans, Financial Collapse".
No reason to sell.
LCR, LCP, and SR-556 are selling like hot cakes.
Conference call was pretty interesting. Every business has the same issues ... its easy to expand in the wrong direction without making any money on it. But the good thing is that the Ruger CEO seems to have a good philosophy. I think he will innovate in guns; then branch out at some point ... he has to realize the current gun boom has its limits. He has to prepare for the day when sales velocity is going to slow down ... but there's a good chance he will come up with a needle mover first.
BTW, Batteries will not be required. The trigger would operate on the Piezoelectric Principle
The trigger would have a learning mode like a remote contro to account for personal timing differences and codes.
Should take less than a second to unlock the gun and no fumbling.
Seriously an electronic trigger would be nice. Adjustable pull and all that..
Could include a simple child lock. Pull the trigger 3 times in the right morse code..like long...short..short and it's armed. Like a password you could change the timing and the code..
Could save you from getting shot by someone with your own gun.
It looks like the biggest problem is that the CEO is so busy ramping up manufacturing he doesn't have enough time to strategize.
So that sort of holds the stock back ... investors don't see anything new in the pipe. Just substituting aluminium for steel in a couple of parts isn't our idea of a "needle mover."