Please notice that SWHC has a $250 million Shelf registered, but not yet priced.
Buy if you like, but beware that it is MY opinion that stock will get hit when the Secondary is priced.
I am buying back in AFTER secondary.
Please do your own DD on all other aspects of Company. To me everything else looks good except the Secondary uncertainty. Others will attack me for this post, that's fine. If I save one person money by holding off buying then I feel vindicated.
New investors, do not believe me, do not believe other posters, DO look for yourself at SEC filings and other absolute disasters that SWHC did when they did a takeover.
Also research what happens to a company's stock when they announce a price for their Secondary share offering.. Do your own Due Diligence, then good luck with whatever you decide.
This company is 158 yrs. old and it is still a small cap stock for a reason.
158 yrs. old and a small cap?
Imagine Coke being a small Cap stock today. Smith has world renown name recognition and it has been around 75 yrs. longer than Coke, yet it lingers in the shawdows of unknown stocks.
Yes, I agree...at the right price.
I also think they should start producing ammo.....how hard can that be? They already have an Iconic name brand, why not capitalize on ammo? Instead they went out and blew $85 million (actually lost this much) on a security company.
How much can it cost to buy a 50,000 square foot building in Idaho and equip it to manufacture world class S&W branded ammo for rifles and pistols.
My guess is about $25 million. Easily done and it would be a money maker from the git go.
This is really so much #$%$ about a highly rated company with good liquidity and a substantial institutional following. Clearly you must be one of the shorts but I don't think you can actually manipulate this stock that well. So what if a company has a shelf if it is financially in good shape, all it means is that they are well prepared for what might come their way in the future.
Sentiment: Strong Buy
Yes - this dat guy is a very unsophisticated basher. A good basher gets his entire story down and sticks to it. This datebehardguy changes his mind with the wind, and find it difficult to refute facts. His endless innuendo is very telling. He says he is here for the retail investor, but is playing a game that actually attempts to screw the retail.
Just making Newbies aware of shelf. When Company finally gives a price and purpose I'm all on board, at a much lower price. There is no reason to buy a (VERY LARGE FOR SWHC) $250 million unknown shelf.
Pretty simple. Unknowns usually lead to losing money.
OKay I will ask you, because the other guy hasn't answered. You seem to hate the stock. What is a shelf? When is it priced? Why would they have a shelf at any price? Do you think its too late to sell this now if i bought it? where do I get back in if I bought it and sold it? How low does it go? These message boards are great, but I never know who to trust. Waiting for your response from vietnam.
I mostly agree with you. I was a little turned off when management failed to discuss the secondary on analyst day. However, I do not think the secondary is necessarily a bad thing. I just wish they would announce their purposes.
Why does this company need money? I can only think of positive reasons for needing so much more money (acquisitions???) but my instinct is to wait this one out because 9 times out a of 10 a secondary offering means a big drop in PPS.
GL to anyone who is currently long, I hope the news is extremely positive!
They may sell lower priced debt which was mentioned in the filing, or if something interesting came along at the right price they could make an acquisition. I don't think Debney would do something foolish like buying an unrelated company again which was done by previous management. Or they could do nothing and not use the shelf at all, but it's called a shelf because it's on the shelf and could be used at a moments notice. It's better than being unprepared at little cost for the filing.
I was wondering the very same thing. Not one analyst on the CC or at the Roth conference even questioned the Shelf and mgmt. never even mentioned it.
I don't care about all the new Regs that have come out, the big boys know EXACTLY what the shelf is for; someone gave them a heads up. If they had questioned it then it would be that much harder for them to sell out of their large positons anyways.
The stock buy back enables them to lose less money than they would have. I'm sure many of these positions were initiated sub $5.00 anyways.
Volume is dead, wonder what lbtool will say about shorts today.
People need to call I.R. and start demanding a statement regarding shelf.
I don't have any money tied up in it and I called, so not sure why other people with sin in the game wouldn't try and get some answers too?