Your prediction may be in the making. The spun off gun sub merges or buys SWHC. YESTERDAYS SWHC action was unusual.... Today's ATK announcement is too much of a coincidence. Somebody THINKS something is cooking.
Yes, a clear signal that there is something going on, else no need to split off. I do admit hat the defense segment is not really a fit with sporting arms. My guess s there is a deal on the table for the sporting arms segment. Who? Not ruger.
Here is my 2 cents. You guys know I can always provide an opinion... right or wrong. I'm still in the belief that SWHC will be sold, just as equity.
The SEC spokesperson told congress that the market isn't rigged earlier this week which we all know is false with all of the HFT going on. The ATK announcement was leaked before trading started on Monday, but the leaker didn't know the announcement wasn't baked yet and the announcement was delayed until Tuesday morning. After nothing happened by mid day Monday, a sell off of SWHC happened in the afternoon, but a re-confirmation of the announcement happened in the afternoon to begin the short covering again. A dollar rise in SWHC was the result into Tuesday's early trading. When the announcement didn't include SWHC being bought out (the rise was on skittish shorts), the confusion again caused a selloff. However, speculation, has caused us to be where we are at now.
There are too many shorts walking on egg shells right now for them to risk taking a bath, when it is still highly possible ATK merges with SWHC. Regardless, it was a nice kick in the shorts (no pun intended, ha, ha) to the stock price.