Back before M&P, SWHC was essentially starting from nothing. I think they must have made a strategic decision to develop a polymer hangun at a certain price/quality combination to go against Glock. They stayed away from lower end and low margin rifles. Handguns is where its at. Now that they own the polymer factory, their margins can be easier controlled/enhanced as well. They can knock the profit margin out of the cost, as well as management overhead and indeed some factory overhead.
I still cant be swayed from thinking that SWHC should be looking at an opportinuty to diversify, and I think they should be looking at the recently split off ATK assets.
As to M&A, it would take an aggressive acquirer to try to take out SWHC at this point, requiring a bid in the high $20's. I expect SWHC to run higher before earnings.
Golden finally caught on and is NOT selling his last 'swan song' holding until he is good and ready. He is likely kicking himself right now for selling in the past few years, but when you have living and tax requirements, ya gotta do what ya gotta do.
20140401|831756101|SWHC|3619|SMITH & WESSON HLDG CORP|14.62
20140402|831756101|SWHC|32595|SMITH & WESSON HLDG CORP|14.76
20140403|831756101|SWHC|25823|SMITH & WESSON HLDG CORP|14.89
20140404|831756101|SWHC|1419|SMITH & WESSON HLDG CORP|14.78
20140407|831756101|SWHC|90147|SMITH & WESSON HLDG CORP|14.94
20140408|831756101|SWHC|161340|SMITH & WESSON HLDG CORP|14.65
20140409|831756101|SWHC|133468|SMITH & WESSON HLDG CORP|14.82
20140410|831756101|SWHC|275833|SMITH & WESSON HLDG CORP|14.62
20140411|831756101|SWHC|142328|SMITH & WESSON HLDG CORP|14.16
20140414|831756101|SWHC|118166|SMITH & WESSON HLDG CORP|13.91
Going higher into earnings. First week of June is the call for fiscal year ending April 30, 2014... WOOT WOOT. should be a few pops in the interim as the shorts cover. They are almost all under water...
Blasting to $18.
Not sure how the atk will do this. It seems they split off sporting arms for some good reasons:
1) get the value out of sporting arms. Perhaps they thought they werent getting credit for sporting segment performance,
2) sporting arms might have been a political problem,
3) they might have decided to stick with defense/govt?
In any event, sporting is now a separate entity. Will sporting be acquired or be an acquirer? If sporting was to be acquired, they would have sold it off straight away. Obviously then they needed to spin off sporting for political / organizational reasons, and my guess is the sporting segment will be a base for growth and acquisitions. So, swhc is still an acquisition or merger candidate by the sporting segment formerly known as atk.
I like it
Trying to cover positions before buyback? The buyback, though only one million shares, will only put more pressure on shorts as more institutions are holding, the short position is still high in total, i think we are going higher. It might be ok to say we may be entering the promised land (18+)..... Funny thing, even at 18, the vluation still not near ruger metrics. That i cannot reconcile, but for the board of directors, swhc is a better company.
You might have changed your name, but not your stripes. If you trade the stock market, its good advice, if you trade a market of stocks, its average advice. I like swhc because its a strong company, growing, good earnings and undervalued. On that i own it.
What up wit dat?
low volume.... there is buying but its taking on the low $15's for now.... volume has to come up, and the only thing to bring more shares in is to meet the ask.....
I think he has been reading the yahoo message board and is waiting for the final leg up, ie the $18-20. With swhcs undervaluation, and taxes on gains, he is going to wait to sell his final holdings and retire.
If the company is serious about remaining independent, they need to improve their board.
i am wit you.
I still worry about the gap in product line. I do worry about the ROI on long guns, its not that great. SWHC was actually smart to stick to high margin pistols, and its a bet they are willing to die with.... that is, if there was ever a semi-auto pistol ban, it would be game over for SWHC. GAME OVER.
A few thoughts on ATK motivations. I think they want to let it appreciate in value with the endgame being a sale. ATK likely realizes that this is the pinnacle (a great time to divest) so they are splitting it and letting the shareholders decide what to do with their shares.
Freedom Group has conflicting product lines - Marlin and Remington compete with the Savage lines.
Ruger has conflicting product lines, rifles....shotguns...
SWHC, in my opinion, needs to diversify in the gun space, and the Savage line will let them get in. They will also get Bushnell and the accessory lines....So, in my thinking, warped as it is, SWHC is the best suitor amoung the three. There are potentially numerous others.... Is Debney up to managing a full line?? More brands??? He has done well so far, but managing a portfolio of brands requires a different skill set.
On a strict ROI guideline, the rifle line is not going to be as great as handguns...
Look for these leading brands: Bushnell, BLACKHAWK!, Eagle, Alliant Powder, RCBS, Champion Target, Final Approach, Gunslick Pro, Primos, Bollé, Outers, Hoppe’s, Uncle Mike’s, Butler Creek and Weaver Optics.
Our ammunition brands include Federal Premium, CCI, Fusion, Speer Ammo, Speer Bullets, Estate Cartridge and Blazer.
Savage Arms is one of the world’s largest manufacturers of firearms with products in the long-gun category. Brands include Savage Arms, Stevens and Savage Range Systems that design, manufacture and market centerfire and rimfire rifles, shotguns and shooting range systems.
Dat: Don't be disappointed that the recent run-up is bleeding off. As Expected. Buy here as $15 is new support....