RGR was off today and dragged down SWHC. I have several reasons why I bought more SWHC today, and one regret:
1. SWHC has been showing margin improvement after opening the new plant. RGR has not.
2. SWHC introduced their new products last year and they are well received. RGR had new products as well, but in different segments.
3. SWHC has many fans in the law enforcement community where I live. RGR has none. Glock is yesterday's news. Even though I own and love my Glock 9mm.
My regret is that the market overall does not reflect my pessimism about our economy and our country.
SWHC will continue to beat estimates. No more crazy security schemes, no more talk of acquisitions. Just executing on their core competency. Making revolvers and pistols. Stay out of the overbought AR market. Sell to cops, women, and the core market: people who want to stay safe at home.
What new plant are you referring to? SWHC didn't open a new plant, RGR did. Wait until they report before you make conclusions on their margins. They will probably have difficulty achieving the Revenue Growth that RGR did.