its staggeringly bad. Ruger was not well positioned in the growth areas that surged post sandyhook. Their pistols will never be a game changer like Smith and Wesson. I fear that rgr is headed for the high $30's.
One of the best stocks that traded on hype and irrational fear of eminent gun scarcity and confiscation; stupid rednecks were buying guns and ammo like crazy... what a great opportunity for the trader.
Ruger made no mistakes; they have a great product. The inexperienced traders made a mistake; now disgruntled bagholders lol
I think the biggest mistake RGR made was not Producing Ammunition. Many millions lost. Most likely rgr will trade around 50-60 range could dip into high 40s now and before next earnings report. JMHO
yen, I used to think so too. But how many pieces per year could they sell? How many bulets could they take away from federal, winchester,remington in the mid class and the gold dots in the high class. Or should they go low end and sell russian knock offs? lol I would have thought that the major gun mfr would give every damn buyer of a gun a sample box of ammo to keep the customer happy and keep buying the ammo thats made for the gun. But no...that was too simple, wasnt it. You could have just 3 or 4 factories that supply the whole usa and lets say ruger could put telco or bond arms or springfield on the labels and theyd actually be made by ruger....but for that specific gun. i WISH THEYD JUST MERGE BOTH SMITH AND RUGER TOGETHER SO WE dont have to think so much. Leave it to wallstreet to take a billion dollar ruger company, an 800million smith and wesson co, and merge it for 4 billion dollars in stock of which half goes as options to the company execs of course. WTF!!!!!! WHEN WILL WE BE ABLE TO GO TO A RANGE...SEE A BUDDY IS OUT OF AMMO nd TAKE OUT A BOX AND SAY HERE, HAVE ONE OF MINE. THOSE WERE THE OLD DAYS.
yup keep your powder dry at $3X.XX it will be an amazing long term opportunity. And if Fifer waited until say $38 to buy back he could buy 13.5% of the company with $100 mil, which might boost annual eps by up to $0.50
exactly, but it was tough to do because at the same time they spent the year convincing distributors to up their inventory all the way to 6-8 turns and its pretty hard telling distributors that one the one hand they should pile up over 325k units in the channel but then on the other hand you are going to devalue that inventory the minute it gets there. On the call Fifer said competitors were doing $100 mail in rebates for the retailer and $100 for the consumer!! In other words they were willing to cut margins to 0% just to convert inventory to cash.
RGR desperately needed a strong portfolio of new products to have stood a chance of keeping shelf space and the market share it had built up, but it didnt have it and missed all new product introductions for these past 2 quarters just when it was so crucial. They say that was due to quality control and that they weren't willing to risk damage to the brand like competitors who were doing recalls. Essentially they have sacrificed the share price and their growth and their market share to protect the brand.
Fifer could do something to help on the buyback but won't unless compelled to. The big $100mil headline was just a message to shareholders to mitigate this catastrophic report that said: 'We get your frustration and we'll make sure there is a floor', but in reality Fifer doesn't really care, he thinks long term both the company and the pps will continue to do well and eventually the market will see that and hopefully buy the stock before he has to. Unfortunately it means that in the near term this stock is toxic.