Actual retail sales are seasonally slow, BUT S&W has a very strong qtr as retailers build their inventory for the fall and winter spike.
Also their current retailer inventories are WAY below historical levels.....with sales growing.
Time will tell. But I think most miss the obvious.
- Shift towards pistols...S&W sweet spot.
- Acesserary div. growth.
- Impoving margins
- CASH now exceeds debt
- Taking market share.
AND most use trailing earnings or last fiscal year for P/E ratio.
This WILL be the 3rd qtr in a row with an average per share of over $.60. (say $2.40/year) At that rate with a P/E of15 = $36 for the stock. Minimum where it should be NOW!
With slight growth = $42. With military = $55 easy. The numbers only get one THIRD higher if you apply a ratio of 20 (minimum for a growth stock) Now = $48 Growth = $56 Military = $72
I am feeling bold. Last qtr my GAP earnings number was off by one cent. Last 2 qtr's = .59 & .63
This qtr WILL be?????? My number is .68!!!!!!! 2017 fiscal year = $2.75 (without military)!!!!!!!
- Increased production
- recent shootings and NICS trends
- Normal seasonal retailer inventory build
- Core mfr & retailer inventories below normal ideal levels.
- increased sales on new products
-Accesory division not constrained by production and growing fast.
BUT, mostly because they can make more because for two qtr's production has been behind demand.