Ok Captain. My GUESS is that RGR will not see 52.20 before it sees 43.80. That is what I think and therefore have a hedged long position. I've pulled my pants down. Now I want to hear your prediction,
I don't disagree with any of that. Im talking about a short term capital intensive ceiling. Aquisions take time and money, as does the building and tooling for additional manu. None of those things have a positive effect on stock valuation at inception.
It doesn't sound like there will be much on the acquisition front for awhile. Who wants to sell their company when their market is booming? Besides, even if Ruger bought S&W, S&W is the one that would rise, not RGR.
But capacity expansion may be a little easier than I had thought before hearing their 1Q report. They were able to make significant additions to capacity in 1Q. Doesn't appear likely that they will slow down now.
But yesterday you said it was going down short term......That's what you said!
Are you so pigheaded that you can't admit you've been SPECTACULARLY wrong so far (RGR +1.86%, S&P500 -0.34%)? And who predicts a stock will go down when it has already had a 20% selloff on a great quarterly report? Are you for real?
Did you short it near the bottom here, so now you're desparate to dump on the stock?
To f/u. Rugar is a fine company. They were at 18/ share. Unless they take on additional infra, they are maxed. They cant raise prices, thats capped. Theres no where to go. You cant improve on back orders. they expand, they fall. They hold steady, they fall. This will see uper 30s soon.
Did you listen to the investors meeting? Obviously not. They talked about expanding production into another building and that they were very openly considering acquisitions that would be advantageous all the time, and members of management have a great deal of past experience in that area.
Who are you to say that they can't raise prices and that they are capped? Who says they even need to, but when your product is heavily in demand you definitely have pricing power.
When I hear people refer to the price a stock was at in the past, as evidence that it is too high, it's a totally specious argument without substance. The market is forward looking, this stock has the continued strong earnings growth needed for the stock to push higher. Yesterday at a closing price of $48.94, it was still about 6.8% undervalued (should be approx. $52.49), assuming it was a market perform, and you only have to look at the recent analysts reports to know that it is market outperform.