Motley fool has consistently been the best source for analysis on this stock. Wedbush probably the worst...in fact their current bullishness makes me nervous. There was that other investment bank clown that no longer follows the stock. I would be shocked if the analysts following have ever even held a water pistol.
Poor guy is already stuck with a large short position. He is just venting.
I sold some at 25 and 27. Hoping for that pull back that never comes...lol. My issue is this: Capacity. Can the company keep up with demand? Local Gun shop had 60 SW sport rifles three weeks ago...gone now. Have ordered me one at $675 so not gouging. At what point does the company max out their factory capacity and run out of earnings growth? I assume it takes time to start up a plant.
I could have thought that at 10, 15, 20...etc. I keep a long position for the grandkids and trade in and out when I see opportunity. Would love a chance to get more at 22.
I am holding my core position and half my trading position. Thinking that a big announcement of an acquisition would present another buying opportunity.
They have excellent customer service and support their products with no questions asked. My local gun store says that they are the best at replacing any product regardless of the problem. I am truly enjoying this ride. Sold a little of my trading position I bought at 22 today. Pigs get fat, hogs get slaughtered.
What rcaptain tried to tell you is that long term investors here bought in after the prior management team made just that sort of acquisition. Barrier gates, etc. Did not work out. I want SW to build shooting ranges, but that conflicts with their primary customer base, so I am trusting this management team to make snap on acquisitions that sell to their current clientele. At my gun store they rave about the customer service at SW and I have personally experienced that when a magazine on my 22A broke.
Step one: No guns sold to people on watch list.
Step two: All donors to conservatives put on watch list. (Like IRS did).
Any quality deer rifle would do more damage than these so-called assault weapons. One 30.06 bullet would rip through five or six people in a crowd. But as Obama has said...these Glocks with multiple clips in them are the threat. What a moron. And that is an insult to morons.
As always, jr distills my feelings into a cogent, well-written post. I do not need dividend income taxed at exorbitant rates. And the share reduction would kill the shorts. The earnings will be strong all year as the company has to rebuild it's inventory pipeline.
It is an iconic brand. I am surprised that Ford has not developed an F150 Smith and Wesson theme truck like the old Eddie Bauer explorers.
Ruger is strong in hunting rifles. But right now you want to be in sporting rifles. I think SW has better brand ID and has integrated a few acquisitions very effectively. I also like the management team at SW, very SH friendly. I think both companies should be at 100 gazillion/share.
I was a little mad at my purchase at 22 last week when it kept dropping..but closed out that trade today at a nice profit (Thanks Wedbush!). Keeping my core holding acquired at 3-5. Motley Fool is the only voice of reason out there in the analyst world. I don't think that most of them have ever been to a gun store. It reminds me of WWE. Your typical analyst has no idea why people like the entertainment, so they consistently undervalue it. I am still surprised that no big investor or takeover fund bought SW years ago as a growth platform.
Good analysis. I just think that small cap funds and individuals want to make money and this management team should have proven by now that they are conservative in their estimates and deliver every quarter. They will e pulling forward sales next quarter because of Orlando...but new markets for gun ownership keep opening up. Women, LGBT, politician bodyguards. Company will make 2.20/share next year. At a 15 multiple that means another year of college tuition for my kids and another layer of self defense for me.
The analyst that took us down last week and helped me buy more at 22 should be commended for his ability to completely ignore his prior recommendation and come out praising the stock today. Please alert me to his next sell/hold call.
Steady fellows. We have been here before. Earnings will be strong...guidance will be conservative but will talk about an empty supply chain that needs to be filled. Political stuff dies down in a week or two. And we have a new market for weapons. The LGBT community will join women as the fastest growing segments.