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Thread: Revisiting a previously discussed investment possibility ...

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    Banned Melonie's Avatar
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    Default Revisiting a previously discussed investment possibility ...

    from


    This interesting tidbit also came out of recent quarterly earnings announcements ...

    (snip)"today's press-release-of-the-day (since we still haven't heard from BATS) goes to Sturm, Ruger (the 4th largest gun-maker in the US) who after receiving orders for over one million units in Q1 has temporarily suspended the acceptance of new orders.

    Forget PCLN, CRM, NFLX, here's where the real action is!

    RGR is up a whopping 571% from Nov 07 while the S&P 500 is down 3%...





    Sturm, Ruger & Company, Inc. Reports Strong First Quarter Bookings

    March 21, 2012

    Sturm, Ruger & Company, Inc. (NYSE: RGR), announced today that for the first quarter 2012, the Company has received orders for more than one million units. Therefore, the Company has temporarily suspended the acceptance of new orders.

    Chief Executive Officer Michael O. Fifer made the following comments:

    The Company's Retailer Programs that were offered from January 1, 2012 through February 29, 2012 were very successful and generated significant orders from retailers to independent wholesale distributors for Ruger firearms.

    Year-to-date, the independent wholesale distributors placed orders with the Company for more than one million Ruger firearms.

    Despite the Company's continuing successful efforts to increase production rates, the incoming order rate exceeds our capacity to rapidly fulfill these orders. Consequently, the Company has temporarily suspended the acceptance of new orders.

    The Company expects to resume the normal acceptance of orders by the end of May 2012.

    The Company will announce its results and file its Quarterly Report on Form 10-Q for the first quarter of 2012 on Tuesday, May 1, 2012, after the close of the stock market.(snip)


    I'll refrain from additional commentary, other than pointing out that industries experiencing rapidly rising demand versus finite production capacity are in an ideal position to force price increases thus increased profitability. Also, applying a little math, with Ruger being one of a comparative handful of US firearms manufacturers, and with Ruger receiving orders for 1 million new firearms over the past three months alone ( = 4 million annualized ), versus an adult US population of somewhere around 200 million people, future sales prospects seem unlikely to 'top out' in the short term at least.





    ^^^ as you can see, the other publicly held firearms manufacturer, Smith and Wesson, is experiencing similar market conditions !
    Last edited by Melonie; 03-24-2012 at 06:18 AM.

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    Default Re: Revisiting a previously discussed investment possibility ...

    People are buying guns and iPods in America it seems
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Banned Melonie's Avatar
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    Default Re: Revisiting a previously discussed investment possibility ...

    ^^^ yes, and dollar den readers who acted on last year's discussions about firearms companies more than doubled their investment so far ...

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