I like to postulate as well. The shorts get acid reflux when they read my posts.
To some extent, there are likely a bunch of trader shorts out there that are trading on short term movements alone and without any thought to fundamentals. Poor saps. I think there will be a big beat on 12/10
Go private is one option, but I think that Golden wants top dollar for his options/shares before he taps out of this one. A sale to third party will get top dollar.
SWHC suddenly and miraculously starts to achieve Ruger multiples, then it won't sell private or public, as the pricing will be too high. One of the primary reasons why I have thought a sale was in the works was that SWHC is horribly undervalued. They might get some love from the market after the Tuesday release . If the pps starts to go up, a sale is off, at least for the near future.
Just remember this my friend, there are plenty of acquisitive companies out there that have cash cash cash. One in particular screams for the purchase of SWHC, that company is ATK.
SWHCs board of directors would be foolish to think they can take their non-diverse product mix to the next level. THE ONLY sensible acquisition for them would be REMINGTON, to get into the hunting space and diversify. Problem is its not the best strategy. SWHC would be wise to consider taking one of their ARs and sort of retro-fitting it to look like a hunting/sporter/Hybrid. Ten round box mag, smooth sides, adjustable butt stock, and some other hunting handies, all pulled together to look more like a traditional hunting rifle than a battlefield weapon. The AR platform is really a great hunting weapon, no recoil, solid control with the pistol grip, room for attachments,
All that prattle aside, SWHC is still a 'division sized' company. It really should be part of a larger organization. Sad but true. Others pointed out that they blew well over $100,000,000 on a lousy acquisition and just finished paying for it several months ago. had it not been for that lousy acquisition, SWHC could very well be outpacing RGR in valuation at this point.,
Thanks for the info. Hey, you got a link for the job postings? If true, what you are saying is really awesome
Something tells me the eight day shutdown won't have as big an impact as the squirrels are anticipating. To wit:
1) a complete shutdown with no production is simply bizarre. Even on an equivalent basis, ie, 25% of the plant for x days and 35% for y days and so on.
2) by conversion time, the rate of production will have been much better than last year. So even short a few production days, they are still cooking with gas this year, vs the smudgepot last year.
3) Debney needed to sandbag the October quarter to some extent just to flatten expectations (see #1 above).
4) Swhc needed to buy back shares. They weren't going to get them cheap if Debney was standing on a soapbox screaming that the stock is going to the moon.
Good luck to all . Monday is going to be an interesting say.
Agreed. I have a number of handguns now in mothballs, some have features that are very collectible. I did pull out the Winchester 94 as a backup for hunting this year and actually used it to shoot a nine pointer and a giant doe whitetail. The Remington came out on opening day, but I did not like the shot placement.
I do intend to set up a nice 17 hmr with a nice scope, bipod, and a special barrel.
Also, a compact 9 is on the list.
So you are right. There has been a change in the types of demand. Ruger and Smith would advance their stock values by flying out a plane of analysts from Chicago and new York for a day of shooting on the range.
I think they are in the midst of merger/acquisition discussions, therefore cannot sell unless as part of a pre-established sale plan.
Otherwise, believe me, the insiders would be selling here like whooores on street corner. They aren't sellingbecause they know there is a brighter day.
Director goldman has a bucket of options in excess of 300,000 that he wants to cash in so he can retire.
The shorts have run a dazzling and confusing book here. Mondays slamdown with naked shares was supposed to set a trend for the week. Ha. Price went up and they had to cover higher today.
This is going to happen again.
Oops I forgot. The sec lets mms sell fantom shares to buyers.
I always thought if a buyer wanted shares they should raise the bid high enough to convince someone else to sell. The sec allows fantom share sales even to the extent of slamming the price down.
I agree with you. Ruger has been like a white knight on a silversteed, blasting through the sky on a supersonic bullet train. But call the doctor, this erection has lasted for more than four hours. Short to $55. Better get long on swhc, I think they are about redy to swallow a bottle of Viagra.
Swhc was Not geared up for sandy hook, but this year they are geared up and the downstream supply chain is running at a higher rate.
Its not so much a matter of higher demand, but production capacity...
So the shorts might get a surprise if the were waiting for December sales to fall precipitously.
Its just too bad lourde chatterbox sold calls at $12, December, ha.
I just looked at the volume associated with the big drops today. The mms were busy flipping to each other at low prices.
I think he did. First because of uncertainty for the October quarter.
Eight days in TOTAL SHUTDOWN is crazy. I can see where they might need some time to synch up with SAP, but not a total shutdown, not eight days
Wow. The drop off is not as high as expected. Still steaming along strong.
It just goes to show: the revenue was not limited by demand, but was limited by supply. Sell through is still strong.
smith is going to have a great quarter!
This was a good effort on the part of the MMs to slam the price - short lived, but amazing manipulation using just a few shares (say less than 50,000 shares) to shake out some weak hands.