$4.50 peeled off the stock yesterday with the huge special dividend, but there are folks who still think ex dividend means buy to get one.
How many called brokers and said "gee I don't think so" even if told the contrary. If you're looking for closing short positions we already blew through at least half the shorts on the way up, double volume days tells me that. I got a nasty feeling we'll see $48 before $58.
Great company, but never fall in love with a stock.
You've done a good job protecting yourself from downside. Unlike some other perma-longs on this board you actually recognize stocks go up and down. Heavy short interest tends to create extreme volatility. Additionally, stocks that are heavily shorted tend to underperform low short interest stocks over time.
I'm just here trading the pullback on RGR, but the crazy and increasing short interest makes me wonder what the shorts are really looking at. I know people on this board tend to just say #$%$ to the shorts, but clearly there are some significant longer term issues with RGR that they see.
No I don't like being right, but it appears that when all is said and done, we might get an announcement, that instead of waiting for end of year, that divvy might be spread around all year long.
Wouldn't that be nice, a 8 or 9% yield on this stock.
I hate to say this but by the looks of it I think we will. This stock is extremely hot and cold and it seems to be cooling down. I sort of expected this to happen but thought it would slowly work its way back up to pre div numbers with earnings approaching. By the looks of what happend to Smith and Wesson today and with the fiscal cliff right around the corner, Im not so sure if rgr's earnings can pump the stock up. No matter how amazing they are.
I suppose if you're referring to a nominal $58 after the dividend is paid out, you might be right. However, when I add the $4.50 I'll get tomorrow, to today's close, I feel pretty $58'ish. Time will tell.
Note: The local TV news in LA had a report on the increasing number of city residents who are buying guns. Being that I live there, I'm not sure that I like that, as there are a few crazies around here. However, it does speak volumes about the luxuriously solid business that RGR is operating in right now.
Oops! We don't get the divvy distribution tomorrow, we just become officially entitled to it on ex-divvy day. I guess 12/20 or 12/21 is when it'll show up as cash in my accounts.