Utter and blatant Plagiarism........... Article from the Fool.
Shot in the arm for Smith & Wesson
Springfield, Massachusetts-based Smith & Wesson is a firearms manufacturer and its stock has gained more than 21% over the last month or so. The company has been reporting strong earnings in recent years -- a trend that continued in the quarter ended April 2013 during which the company reported a 38% jump in sales to $178 million while net profit doubled to $25 million.
However, this is not the only reason behind the recent spike in share price. What has driven the stock is management’s effort to boost earnings per share by repurchasing shares.
Last week, the company announced that it will be buying back its common stock at $11 per share, up from the earlier offer of $10 per share. Of course, there is fundamental attractiveness in this stock which trades in an industry with limited competition. A forward price to earnings ratio of 8.1 is an indication that there is much more upside left in the stock. Management's buyback should give investors further confidence that this company is on the right footing.