Swhc came out of the gun binge in very good shape, much same as Ruger:
$69 million in cash
14 million fewer shares outstanding
Only $53 million in long term debt additional
Established dominance in pistols, took share from glock
Bought their supplier of plastic moulding
Added $60 million in new modern mfg equipment
Maintained pre sandy hook growth levels,
Improved its debt ratings
Borrows at market rates on an unsecured basis
Continues to be profitable .....
Price sales ratio at .9x very low
Mcap/ebitda very low
How does it look compared to 2012. 2013 is really an outlier as the gunmakers were shipping everything they made, shipping as fast as they could. One thing to think about is the marketshare was distributed to second and third tier brands that wouldnt be considered today. My goodness, people were paying big bucks for a taurus, stoeger, highpoint, you name it...
Just sayin. I think those #$%$ are going to stage an attack from within. And so does barry. Thats why barry has been blaming the cia for the sudden resurgence of talibanism .... After barry had it all but wiped out....hahahahahhahaha... So if and when that day arrives, the reaction will be stronger than sandyhook
I am buying more guns, as i collect things that are interesting to me.
I have about ten guns, no Teslas.
I guess its like this: you buy one tesla and never another. Tesla pps slumps.
I bought an mp 9 c and i want another ruger.
I don't want any teslas.
I believe its from the highly informative and insightful postings here. And from the belief that the nation will be over rub by ebola ridden zombies in the near future.
They should announce a curtailment of the dividend in 4Q. That will take it down to SWHC levels. They cannot afford to pay divvies and keep up the insane capital expenditures.... If they are not careful, Ruger will end up on the block...
They must have been reading the illustrious posts on this here message board.
Even the guy with the nutty messages is gone. I wonder if the shorts covered more. Short interst down to 11 mil shares, down from about 21 mil in march 2014
Why dont you post an lbo calculation and show us what you know, instead of telling others what they dont. If remington, marlin, bushmaster, et al were takeout targets that got taken out, then swhc is also a good candidate....
But alas.... the buyback is over.
There COULD be another buyback, but we shall see.
Recall the company would be competing with all those shorts for shares.
And you know what happens when that happens.
Take comfort that while MSRs are down, along with MSR gross margin, it is RATHER OBVIOUS that SWHC is taking massive share from competition (GASTON GLOCK and SPRINGFIELD) in PISTOLS...
UNDERVALUED HERE EVEN CONSIDERING REDUCED EXPECTATIONS.... THIS COMPANY IS DEFINITELY IN THE LBO ZONE!! I THINK DEBNEY IS KEEPING HIS POWDER DRY IN THE EVENT HE NEEDS TO FEND OFF A HOSTILE. HE HAS $175 MILLION IN BORROWING POWER TO MAKE LIFE ROUGH FOR AN UNWELCOME SUITOR
IF OBAMA KEEPS UP HIS BEHAVIOR, COLT WILL SELL OUT OF ITS OVERSTOCK OF ARs AND SWHC WILL START MAKING ARs FOR EVERY ARMY ON EARTH. EVER WONDER WHY THEY BOUGHT AN EMPTY BUILDING??? WWIII is COMING AND THE ARAB ARMIES WILL NEED SIDEARMS/
This is the sort of thing that gives the short stomach acid.
I hope they like the taste, because there is more to come.
All day they covered, real slow like... But i bet they covered 8 million shares. All the yutz bailed.
Swhc still in good shape. They will continue to generate cash, so the yahoo that said declining margins = declining cash is wrong. The buybacks will go on as scheduled in that the company will be buying back shares above $10. The shorts
Hey chatterbox, good to see the alias resurface!
The challenge here will be to see what the new normal is in sales and profit and where the market gives a value. I doubt it reverts back to old valuations say $8-10, as this is a whole new scene, even with regard to to the pps downturn... Also remember, there is an open order to buy about 13 million shares..... You might see it dip into the 10, but the shorts are going to give it support there with covering.
Now recall that swhc is becoming very attractive here for an lbo.... Don't forget about the atk loose ends out there...
The $13 price target was derived using an EV/CY15E EBITDA multiple of 6.5x
...we believe shares of SWHC represent a favorable risk/reward tradeoff for patient, value-oriented investors," according to Dionisio.
...Other key points mentioned in the report included increased consumer sales in the concealed carry segment, growing law enforcement sales and a potential U.S. military contract.
I think that both rgr and swhc got a boost from colt not going into the toilet. Perhaps the market was discounting for the potential takeover of colt by rgr or swhc? WTFDIK!