At the recent CC, the management said the sales of 22 caliber guns were hampered by the shortage of 22 caliber ammo. And, we all know how serious that shortage problem is. Would it not be more profitable for SWHC to take the money used for share buybacks and set up a plant to manufacture ammunition? They would make money on the ammunition sales and likewise increase gun sales. I hope someone addresses this question to management at the next CC.
The shortage of ammo is created by our political administration who, having shut down the last lead smelting plant in America, has effectively started to win the bid to end our 2nd amendment rights. Please don't take my word for it - do a search for the EPA closure of the last lead smelting plant. We have to import all of our lead now is the reason for the additional expense. Just imagine - we would be at the mercy of a foreign country to send us ammo in the event of a conflict.
There is very little profit in 22 lr ammo. So it would be DUMB for swhc to build a plant to make 22 lr ammo.
The reason for the shortage is self imposed by the ammo makers. They have switched resources to higher profit calibers like 40 and 9 and 44 380 and so on. So, fewer in supply and 22 ammo hogs waiting at the doors of cabelas and gander to take the rounds off the shelf in minutes.
22 buyers dont like to pay. They sqwak if they pay eight cents a round. No money no profit. No 22 rounds.
It is closet to 12 cents a round where I shop. And, if manufacturers were happy to produce it when rounds were selling for 5 cents, they should be overjoyed to manufacture it when rounds retail for 12 cents. In addition, the manufacturers would sell more 22 caliber guns.