New order moratorium in 2013 extends longer than in 2012
Last year, Ruger declared a moratorium on orders for new firearms 3/21/12, and lifted it 5/29/12. Mr. Fifer said he wouldn't do that again because distributors mistakenly assumed Ruger was going out of business.
This year, Ruger mentioned in a regulatory filing, dated April 29, but e-mailed to shareholders May 15, that Ruger had "restricted incoming orders" from distributors because of the huge backlog of unfilled orders. Backlog is more than 2.1 million weapons, versus manufacturing capacity of 500,000 per quarter.]
In addition, Ruger stopped permitting instructors to purchase weapons using the "instructor discount."
The "incoming order restriction" is still in effect. Factories are working two shifts, and both plants are hiring engineers. Obviously the new product shortage is severe, and may permit Ruger to raise prices in July, which Mr. Fifer said the corporation does "on rare occasions.".
How is it that instructors can purchase at any price, much less at a discount, from Ruger when Ruger claims that it only sells to its select few distributors and not directly to individuals or retailers?
I believe this is a $100 stock all day long. My biggest beef is that they are being too conservative in how they expand capacity to produce. Every gun they do not produce is a potential lost sale to a competitor. Why they cant make 1 Million 10/22s and 1 million mini 14s to satiate demand is beyond me. I actually this company should be taken private if it cannot expand fast enough to meet demand.