Gun stocks taking a beating... when to buy? | TigerDroppings.com

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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21443 posts

Gun stocks taking a beating... when to buy?


RGR - Sturm Ruger and Company is the one thats of interest to me. They just paid a huge pre-tax cliff dividend but have been paying an increasing quarterly dividend for the past 3 years after a 3 year hiatus from paying a dividend. despite losing about 15% over the past few days, it's still up +20% on the year.

I'm going to give it a few more days, but if it keeps dropping on just rumor, I'm going to dive in.







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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
479 posts

re: Gun stocks taking a beating... when to buy?


quote:

but if it keeps dropping on just rumor


What's the rumors? I haven't been keeping up with it.

I would imagine that if there continues to be talks about stricter gun laws, gun sales will go up before the go down...






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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21443 posts

re: Gun stocks taking a beating... when to buy?


quote:

What's the rumors?


I guess it shouldn't be called rumors; just reactionary sentiment after the shooting last week.

quote:

gun sales will go up before the go down

That's my guess.






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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
479 posts

re: Gun stocks taking a beating... when to buy?


Well I just jumped in. The stock will probably go down a bit more before it goes up, but I think gun sales will go through the roof when something is done in Washington. I don't think there will ever be a ban on handguns (just limited magazine sizes) so I don't see these companies struggling long term. I believe this is a good entry into RGR and SWHC.





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Dan
LSU Fan
Houston
Member since Dec 2006
2187 posts

re: Gun stocks taking a beating... when to buy?


I just came her to post this same question. Smith & Wesson down 10% on it's largest trading day ever? I don't expect these prices to jump back up in a hurry but I feel they'll slowly recoup much of today's pps drop as the sentiment cools down in the next few months.






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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5378 posts

re: Gun stocks taking a beating... when to buy?


quote:

Smith & Wesson down 10%


should be around 8.43/share at 9.8 P/E and .86 EPS. closed at 7.79, almost 8% off that. its P/E is lower than the industry average at 13.7 so there's potential for the stock price to increase a bit. wouldn't be surprised to see it jump back up to around $9 by the end of the year especially if there's a debt deal.






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TJG210
LSU Fan
New Orleans
Member since Aug 2006
21898 posts

re: Gun stocks taking a beating... when to buy?


How badly would they be hurt if they go back to the Clinton Automatic ban? Do they have much exposure in that area?

(Sorry I don't know much about guns)






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djmicrobe
LSU Fan
Planet Earth
Member since Jan 2007
1287 posts

re: Gun stocks taking a beating... when to buy?


Stupid people. Gun stocks should go up because you are the first line of defense before the cops get there.
Everyone innocent person needs a gun. The criminals already have them.






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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29858 posts

re: Gun stocks taking a beating... when to buy?


Totally depends on legislation, everyone is just guessing at this point. My guess is that shotgun and handgun makers will do fine, but that is just a guess and I won't bet any money on it.





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TheTigerZone
LSU Fan
Moss Bluff ,La
Member since Dec 2009
2343 posts

re: Gun stocks taking a beating... when to buy?


quote:

Stupid people. Gun stocks should go up because you are the first line of defense before the cops get there.
Everyone innocent person needs a gun. The criminals already have them.







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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
479 posts

re: Gun stocks taking a beating... when to buy?


Smith and Wesson up 8% and Ruger up 5%. Nice rebound after yesterday





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stendulkar
LSU Fan
Member since Aug 2012
442 posts

re: Gun stocks taking a beating... when to buy?


Anybody have a list of gun stocks other than the two mentioned above?

Also are Ruger and Smith and Wessson still good buys @ today's rates despite their rally from yesterday's lows?

Lastly, if the automatic weapons ban comes back, will it affect RGR and SWHC? Like the other poster asked, what is their exposure to automatic guns? Or so these guys only make hand guns?



This post was edited on 12/19 at 12:31 pm


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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5378 posts

re: Gun stocks taking a beating... when to buy?


quote:

Smith and Wesson up 8%


Called it.

quote:

should be around 8.43/share at 9.8 P/E and .86 EPS. closed at 7.79, almost 8% off that.


Trading around 8.49 right now








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kevv824
LSU Fan
Member since Sep 2006
2214 posts

re: Gun stocks taking a beating... when to buy?


Ruger way up since Obama





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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4791 posts

re: Gun stocks taking a beating... when to buy?


quote:

Called it.


I read your post last night and bought in at 8.03 this morning after doing some research, got out at 8.40 this afternoon







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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5378 posts

re: Gun stocks taking a beating... when to buy?


Nice





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bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27069 posts

re: Gun stocks taking a beating... when to buy?


quote:

automatic weapons ban comes back


The lack of gun knowledge in this country is why everyone is so scared of them.....






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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4791 posts

re: Gun stocks taking a beating... when to buy?


quote:

The lack of gun knowledge in this country is why everyone is so scared of them.....


Politicians are far too busy with partisan ideals/lobbyist funds to be concerned with petty things like knowledge.






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matthew25
Ole Miss Fan
Member since Jun 2012
3367 posts

re: Gun stocks taking a beating... when to buy?


Have you looked at Olin? They are building a huge plant in Oxford. 1000 employees per their initial press release. Haven't read anything lately.

They are getting rid of the union they have in the north.






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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
479 posts

re: Gun stocks taking a beating... when to buy?


Anyone have any thoughts on when the guns stocks will hit their peak? I'm currently up 28% in RGR with earning to be released late February. I have a gut feeling the stock will get a nice lift after the earnings are released but a lot can happen in a month.





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