several years ago, CEO said he would never enter low end AR market due to no profit in them. Wonder why he changed? retailers are overstocked with low end ARs, smaller margins, and more political heat
If it is so great why are owners trying to dump freedom. SWHC and freedom are barely recovered from near death financials. Tactical , military, law enforcement are low margin and cyclical. And politically charged.
AR 15 is a commodity, made by anyone.
Also, manufacturing, casting and machining differences.
Ruger has done well with quality sporting weapons, over many years and cycles. CEO stated they can grow 30% organic. Why enter a segment others have lost money in.
This company has a long history of savvy business practice. I am remaining a share holder and happy I am not on the other side of any dealings.
The Prescott Plant was built and operated by US Motors making big electric motors, due to imports, lower exports and stronger dollar they had to consolidate operations to AR. The plant was empty and abandoned.
Old man Ruger picked it up for near free, Had enough money left over to buy a large cattle ranch for a personal hobby. Prescott had a community college with a large gunsmith program. One thing colleges are good at is producing more degrees than jobs.
A third of the workforce is temporary from an employment agency. Two 12 hour shifts a day. No union here. City of Prescott just gave them a free parking lot, based on a few more jobs.
I spoke to a couple of nearby politicians. They had worked on getting ruger to expand in their local jurisdiction. Their opinion was ruger wanted everything for nothing. Since they publicly announced a nationwide search I bet some politician will set them up with a sweet heart deal. I hope for high margin shotguns, and avoid the commodity and political ARs.
Debt free is all I understand with balance sheets. Dividend is 40 % of earnings, I can understand. No guidance is good, but maybe the biggest problem. Wall Street do not like people who don't play the game.
Do not Know about the east coast plant and management? Maybe a someone can post about it.
if they were really interested it would be a done deal before you or I learned of it.
Your assumptions they must be interested is off base. Companies are kicking the tires and peaking up skirt all the time and do not require shareholder approval to have a beer with a broker?
Secondly, They could make a AR anytime they wanted, they have the people, plant, distribution. why buy other people baggage.
Last, Texas government will give them so many " job credits, and infrastructure support" they will get a new plant for nothing.
No self respecting gun company would pass up a FREE peak under the skirt of another gun company. Always more lookers than buyers.
2012, 2011, 2010 show the same pattern seasonal declines feb. to aug. then increase aug. to feb. all year over year looks intact.
I think the shortage is some what engineered. I almost bought a 1911 the other day just because it has been out of stock for months and it was the last one left. If they had 10 I would have not consided the purchase.
If your customers are in a panic, makes marketing sense to enhance it.
Bottom line if you meet demand, demand may disapper.I do not think rgr or swhc wish to meet demand.because it is not sustainable as is, as they warned of backlog not real.
Ammo shortage I do not understand?
Two statements have been annoying me.
"It is a mistake to increase prices" The cost of production is up like 20%. Margin is down. demand is high, Can anyone explain to me why they would want to keep sales price down???
" The more busy our employees are the happier the are" They have been running full out with heavy overtime for 16 months. Burn out will effect any worker, sounds like a sweatshop producing tee shirts
History, SWHC is more of a turn around play with new mangement, which so far is rising from the dead, RGR has no debt, dividend, shareholder freindly, new products .
olin has an old ammo plant they are closing, Last C Call they were asked if they would re open it. Firm answer was no. Do not think the players feel this demand will last
Remember when ruger use to cast big bertha golf heads? Wish they would do more capital investment and use thier casting and machineing know how for some diversification on high value aerospace , medical etc.
TD news feed is pay to print. They take no responsiblity for content. Or who it is.
Too bad the SEC will no longer protect small investors. Seems like it would be a simple case to prove !!!!!!!!!!
TD ameritrade had 3 news reports from bezinga. They started the rumor then later comfirmed it as a rumor. Good way to protect yourself. yell fire till you get desired results then yell it was a mistake, to avoid any legal response.
they did the same thing on this stock last spring by reporting bogus numbers. I sent a complaint to TD. The response was they pay TD fees to carry thier "news". TD collects fees for these news feeds
think they are out. 2.495 M 1/12 down from 2.783 M in 12/12 over 1.733 M last year. Normal seasonal drop dec. to jan.
conference call mangement seemed to be real down beat tone in regard to 2013. Real whiners. But the projected guidance was equal or better than cat, mtw, slb.
Momentum stock out of favor
No it moved one minute before the news hit nbc about the shooting in Phoenix, during the hearings
If this stock drops 90 cents after every shooting the stock is in trouble
Another point is the high use of anti psycotics, anti-depressents. Replace the pharma industry with medical marijana. Never hear of a pot head harming people, but they fill the prisions.
Not sure if I understood last CC. Are the 4 mini mills allready max out, And some efficiancy problem with the new mill. Sounds like they were overloaded last year, not sure if they can ramp up.
Noticed some price increase at the store level. Would this be from RGR or just the retailer