A caller asked today about RGR, and he said he didnt know why it was spiking right in here, but he would look into it. Again RGR is dirt cheap. We could blink and it could be up to a 15 (cheap) multiple and be at $70. The other side who are short (5 million shares) believe gun sales have topped (Agree) but miss the fact that Ruger can pound out earnings for years to come with accessories, new segments, new products. Or someone may just decide that the RGR franchise is worth 2 billion at least and the buy the company for $100. All good.
He's been moved over to cover womens hygiene product companies.
Enterprise value. They can easily have a 3 billion mkt cap given their growth rate, their % ownership of the gun industry, PE valuation, etc. This is one of the fastest growth industries in America. They will make all estimates not only on guns but also accessories from the millions of sold units. ATK bought out Bushnell for 1 billion alone. They are growing at 30-40% but trade at a 13x pe. Dirt cheap.
This is a $200 stock in 3 years. Let them play their game. i would love to see a white knight come in and offer $120 just to wipe out these liberal shorts.
By the way his next move will be to simply say that shares are now fully valued, having denied his customers the opportunity to make life changing money.
Key day tomorrow if we can close over $56 on some volume. This stock doubles this next year.
RGR is dirt cheap. Good move on London Cos part. Owning this much of the company I wouldn't rule out a take out attempt.