Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that during a severe thunderstorm on July 25, 2013, heavy precipitation caused a portion of the roof to collapse at its Prescott, Arizona manufacturing facility. No one was injured. The Company is in the process of undertaking repairs and expects to be back in production soon.
This temporary disruption may have a material impact on the Company’s results of operations for the third quarter of 2013, but is not expected to have a material impact on the financial position of the Company.
I disagree. Multi million dollar machines and electronics will be affected along with quality control issues after everything gets running again. All the machines will have to be torn down and inspected. Puddled water near a multi horse power motor could result in electricution of the user/s. Assuming they have flood insurance and the insurance company doesn't refuse payment due to lack of maintenance on the roof drains or the general roof structure, tearing the machinery down to relube all the moving parts and then resetting/calibrating the machinery will have an impact on quality. This type of unforeseeable event could happen to anyone, but the timing couldn't be worse. I wouldn't be surprised if the CEO was aware of the shoddy structure which fueled the previous expansion measure. Why wouldn't the CEO comment on a structure collapse unless he already knew about it's poor condition? I doubt this will be a one week fix.
You can post 3 day old news, but not qualify how you contradict yourself by saying both:
Increasing short interest is good for SWHC stock price, then say:
Decreasing short Interest is good for SWHC stock price.
This sounds like the structure gave away. They should have built it just as strong as SMITH did. Go with SMITH! Looks like Ruger is going to lose production. OW WAIT - there are plenty of RUGER guns sitting on store shelves, so no worry.
Mark Lang, group vice president for Sturm Ruger, was unavailable for comment. However, a person at the scene who wished to remain anonymous left a voicemail message: "It was terrifying. They evacuated the whole building. The ceiling opened up. A flood of water came in. ... It went everywhere, all over the machine, all over everybody. The roof caved in."