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Smith & Wesson Holding Corporation Message Board

  • kuntao46 kuntao46 Feb 1, 2013 7:49 AM Flag

    Can someone explain to me why Ruger and our beloved S&W are not expanding into the ammo biz?

    Guys, I just saw a video where this professor was saying that military usage of ammo has gone thru the roof to the tune of 300 million dollars more than last yr and arent we all tired of paying $20 for a box of 50 bullets? 38.sp,,9mm,.380 ,etc.? Remington and Winchester and most others are running at 7 day 3 shifts 100% capacity. And you still cant find a box of .22's in walmart unless you got lucky that day and a delivery just came in. Why is Ruger and Smith not using their capital and credit line and develop cheaper bullets that take all the major biz away from their competitors. I mean can anyone imagine not trying a Ruger or especially a bbox of ammo with the name Smith and Wesson on it? They must be losing more than they make in gun sales? Why wont they expand into this territory? Any ideas? Seems like a no brainer and an easy way to move this stock to $150 in 1 yr of less.

    Plus these 2 co's have the huge advantage of making bullets that "specifically work for their model guns better than their competitors.(They can say it anyway.) I think this stock goes to $50 in 18 months max if they just use some of their credit and open 2 factories to start!

    I think if these 2 dont do it, foreign companies will pick up the slack to give us a 5 or 10 cent bullet once again. Hell, I am ready to buy Russian Ammo which I swore I never would if they can just make an average grade of reliable ammo for 10 cents a bullet. 3 cents for 22.'s. I dont think it makes a bit of difference what legislation gets passed. We will always need ammo. I for one just want to pay 10 cents for my 38 specials so I can go to the range, and shoot myself blind for like $40 for $400 bullets.

    Question #2-Where do the gang bangers in every state of the Union get their ammo? They almost all have criminal records, and its easier to get crack than ammo. Thier isnt any money in it for people to deal it. Where is their stuff coming from?

    Sentiment: Strong Buy

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    • Answer Question # 2. Any online seller of ammo will ship it without nary an I.D. card.

      • 1 Reply to ron284
      • That is not true for all online ammo seller, at least not the ones I have use. I have had to supply a copy of my drivers license to several places. The other day, I was going to order some ammo from Cabelas for my step father who lives in IL and they specifically state on their website that they will not even ship ammo to IL and a couple of other states. I don't know why that is though.

    • It would be a good idea but, they are having a hard time meeting the increased demand for firearms. It is very difficult to buy a gun at Cabelas these days. Hopefully, this won't hurt the stock price. IMO they should be focusing on that. As far as the gangbangers, they don't care about their firearms and the type of ammo they use. They're probably making their own,ie,, reloads or when they stick up a house, where there's guns, there's ammo. It's a whole 'nother world.

      Sentiment: Strong Buy

      • 1 Reply to rxpert10
      • I am sure they could expand firearm production and look at the ammo angle at the same time. I am sure they have thought about it. I suspect it is a build (SWHC) versus expansion (OLN/ATK) issue. As long as the current environment continues, SWHC/RGR as well as others will see continued demand for their products. Earnings is going to be awesome.

    • As for SWHC/RGR producing ammo, probably has to do with the regulations and startup costs. Also, I would suspect that OLN or ATK could expand production easier than SWHC/RGR. However, with the current state of affairs, it might be something for them to look at.

      To question #2, WalMart? I have never had to provide ID to purchase ammo.

 
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