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
Never going to see 8. Buyback and shortcovering ..... Then you need to think that if it drops lower than $12, there will be a buyer come knocking. With practically no debt and a cash balance, this company can be an LBO....easy. That is reason #2 for a buyback, debt keeps the dogs away, and higher share prices make a buyout more difficult.
Very average=unimpressive. Dont forget that even if an army contract is priced thinly (with full cost absorbtion) it does generate margin, and it serves to reduce overhead (fixed) for all other product lines in the plant. In other words, when the company runs full bore, it can make boo-koo money. And in the absence of other work at higher margin, its the thing to do.
You dont seem to grasp the government contract play, oh wise one. If they ever announce a government contract, i am selling after the massive spike in pps. And that is all. The margins will be 'very average' on the government contract, but they will create margin that was not there before, and the 'positive stigma' might give it a boost.
If swhc were to win an army contract, the buying frenzy would be neat.
"it's grossly undervalued,
the buybacks will drive it higher,
it will win a government contract,
it's gaining market share,
it's margins will improve,
director sales don't mean anything,
Those are good reasons
Any idea?? what the products are?
Comments on the retirement of Pasantes?
Debney looks like he is building a powerhiuse organization. I am glad he hired a new svp mktg that knows nothing about guns. The industry has been poisoned by old blood....
Yes, i say its a buy.
The analysts worry that gross margins will decline as volume declines and that is a valid concern as manufacturing overhead would be spread over fewer guns of production. The plastics acquisition would offset the unfavorable overhead volume variances. As well, the company spent major dollars on new equipment in the last 18 months along with the computer program SAP to help with production planning. All in all, the variable manufacturing margins probably increased 10% or more. Sales volume could drop back to 2011 levels and the company will still throw off the same amount of gross margin dollars.
Just be ready to weather a storm perhaps, but also understand that the shorts have a standing order to buy 15,000,000 shares.
Second, the market is discounting rgr because of its diverse product line. While we all buy traditional rifles from time to time, the profit is in pistolas and msrs. Swhc is in the sweet spot. So we go back to being undervalued and in the sights of acquirers. If swhc wants to remain independent, they must buy back stock. If this is their strategy, i would expect an announcement for an expanded buyback perhaps with the July quarter earnings call. No sense announcing now, as they would be working against the current buyback.
Swhc acquired the injection moulder several months back. The sg&a and exec management ovrhead and profit were stripped out of the plastics costs. Big savings. I would say that they were able to take 40% out and if the frame was say 20% of the cost, they improved gross margin by 8%' 20 x80.
The shorts still have to cover. They have a buy order for 15,000,000 shares. Watch first for a swhc rebound, the shorts can only cover so much so fast
I think he is holding back news of an increased buyback if he has any intent to increase the stock buyback allotment. He will be able to get shares with the current allocation much cheaper. No sense releasing news that more stock will be bought back esp if the price is going down.....
its staggeringly bad. Ruger was not well positioned in the growth areas that surged post sandyhook. Their pistols will never be a game changer like Smith and Wesson. I fear that rgr is headed for the high $30's.
The financial writers with the help of the shorts are busy now writing blistering stories for the bell tomorrow. Pps will be smashed
Earnings reported minutes ago... Core sales way down, new products made up for ... Earnings and cashflow down big. Stock buyback announced..
Earnings call from the 31st to the 29th?
Yes, Debney is a top tier manager. He does have the ability to make an acquisition... If swhc wants to stay in the $15 ++ price range, they have to make an acquisition, or face acquisition.
Looks like the shorts covered in the last half of june...they were essentially covering while no one was caring...