RGR

Sturm Ruger & Company Inc.

Consumer


Presented:09/11/2014
Price:$51.28
Cap:$1.00B
Current Price:$41.30
Cap:$0.70B

Presented

Date09/11/2014
Price$51.28
Market Cap$1.00B
Ent Value$0.95B
P/E Ratio28.03x
Book Value$9.90
Div Yield1.1%
Shares O/S19.42M
Ave Daily Vol320,000
Short Int26.53%

Current

Price$41.30
Market Cap$0.70B
Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms in the United States. The company provides single-shot, auto loading, bolt-action, and sporting rifles; single-action and double-action revolvers; and rim fire and center fire auto loading pistols, as well as shotguns under the Ruger name. It also provides accessories and replacement parts for firearms. In addition, the company provides investment castings that are made from steel alloys directly or through manufacturers’ representatives. It sells its firearm products through independent wholesale distributors to the commercial sporting market; and exports its firearms through a network of commercial distributors and directly to foreign customers, consisting primarily of law enforcement agencies and foreign governments. Sturm, Ruger & Company, Inc. was founded in 1949 and is headquartered in Southport, Connecticut.

Publicly traded companies mentioned herein: Cabela’s Inc (CAB), Dick’s Sporting Goods Inc (DKS), Smith & Wesson Holding Corp (SWHC), Sturm Ruger & Co Inc (RGR)

Highlights

Despite secular tailwinds in the firearms industry, the presenter believes Sturm Ruger (RGR) is on the precipice of a large contraction in demand. RGR is poised to see large inventory build-up from oversaturated channels, and even though the stock has moved from highs of $80 down to the current $50 level, the presenter believes further declines are coming and forecasted a $40 target.

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Idea Discussion

Commentor 1 - 2 weeks ago

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