It was fun watching the 9.30 wall fall...but it was nothing compared to the fun that is coming in less than an hour. We've been watching paint dry for the past month (8.8 to 9.50) despite incredible sales biding our time, chewing our nails, second guessing the decision to go long gun stocks in the face of overwhelming liberal disgust with gun makers and the second amendment, and waiting for something to break the stalemate. I believe that break will occur in two stages.
The first blow will be RGR's earnings. They'll be well beyond solid from margins to revenue. A straight up body blow to those holding short positions as well as those waiting on the sidelines with major cash to invest (don't believe there's cash on the sidelines....look at the insanity of this last week in the overall market).
But it is the instant that RGR comes out with their guidance for the current quarter that is going to be the haymaker....I truly believe it is going to blow a giant hole in the liberal thesis out of New York, California, Illinois that these gunmaker stocks can be controlled and that at 'long' last, this stock is going to start trading at values that are much more fitting for it's prospects, growth rate, and underlying fundamentals.
Good luck to all, especially shorts in the next hour (I've been on the wrong side of short squeezes before and they're simply horrific...totally a sinking feeling of desperation at not being able to escape 'intact')
Great post. There may be a knee jerk reaction by the shorts, who will make a last gasp attempt to drive it down. Expect multiple negative reports by Forbes and Bloomberg. Let them ride. Webush and keybanc will also try to twist the positives in a very negative way. Defend your investment as you would, if someone was breaking into your house to harm you.