I thought you would be pontificating about the $9.99 "wall" that went up this morning,
. I guess it broke through before you hit POST.
Yes. Swhc is on the buyout screen:
Very low mcap/ebitda
Very low debt
Top in its industry
Deficient board of directors
Cash balance will be in excess of $100 million at quarter end.
Gun regulation fears will be gone in november.
Thats what a target is all bout. If swhc didnt sell guns, warren buffet would have bought it already.
Admittedly, adding debt and paying off equity can be debatable. However, swhc has done so moderately, its leverage is still ok (no enormous debt amount) and the benefit did accrue directly to the remaining shareholders. Swhc SHOULD be trying to reduce common shares, and did so with a modest amount of debt. The average repurchase is about $13?
Margins? Schmargins. Swhc has 'right priced' its product line, and is a leader in the us market. Its goods are in demand. No discounting. Ruger sends out deals for the stiff trigger lc9, soon ruger will be giving away 10/22s !
This is the sort of thing that gives the short stomach acid.
I hope they like the taste, because there is more to come.
The $13 price target was derived using an EV/CY15E EBITDA multiple of 6.5x
...we believe shares of SWHC represent a favorable risk/reward tradeoff for patient, value-oriented investors," according to Dionisio.
...Other key points mentioned in the report included increased consumer sales in the concealed carry segment, growing law enforcement sales and a potential U.S. military contract.
I wonder if hamman will upgrade swhc to a strong buy. Maybe not until all of his short clients are out!
Steve? Is that you? How many times does your lawyer tell you to stop posting on these message boards? Is unbecoming.
I doubt the iconic and quality Colt brand will never go out of business. The current state of financial affairs there is bad, and i think there will be a massive restructuring in bankruptcy court perhaps. Ownership will change, but you will always be able to get a colt gat.
I am curious about the price action of the darling smith.
I believe its from the highly informative and insightful postings here. And from the belief that the nation will be over rub by ebola ridden zombies in the near future.
You know your ARs. The colt 6920 has 1-7 rifling, while the smiths do not. Most, incl freedoms products are 1-8. Dpms might offer a standard 1-7. That colt is a nice AR.
Tell that to the shorts. I doubt there are any significant longs on margin. The time for longs to be on margin was back in the 7s and 8s, and there were many longs on margin then. It is difficult to think that at this time in the cycle that someone, or a significant number of someones, would go #$%$ with their borrowing ability. I would say that a short would be more prone to be using leverage than a long, at this time.
So no, dont contemplate some massive convergence of margin calls on longs. That train left the station last quarter.
They have to be hurting this quarter. AR sales waaaay down everywhare i go. The gander mountain guy almost jumped when i asked to see a 6920
I do not know how debney computes turnover. My calcs might be low as i am including the total cost of sales number. However it is consistent. Where does the 65 day number come from?
OK, now lets look at colt defence:
Avg Inv (millions$) (Beg/End)
Cost of sales (millions$)
TURNOVER times per year