S&W and Ruger

I read something today saying the S&W and Ruger stock went down on 11/09/2016.The reason was because of the Trump win which means gun control is off the table. I think this will only be a temporary move in their stock sort of a knee jerk reaction of thank God she lost.When things settle down their stock will pick up.

Okletsfish said:

I read something today saying the S&W and Ruger stock went down on 11/09/2016.The reason was because of the Trump win which means gun control is off the table. I think this will only be a temporary move in their stock sort of a knee jerk reaction of thank God she lost.When things settle down their stock will pick up.

Click to expand...

It may be off the table on the national level but we still have an uphill fight here in Maryland. Remember to contact your state elected officials.

I bought a bunch of Ruger @ 12 "back in the day" and sold some last year at 60. I bought more Friday @49. It's down a bit more since then, but I'm happy w/ the 49. Pretty sure it'll come back up, plus they pay a dividend.

I know nothing about buying stock. However, I've always wanted to dabble a little in buying some stocks in firearms. Can anyone point me in the direction of how and where?

Considering that they produce a product with a potential useful lifetime of - what - fifty years? a hundred years?, it's amazing either of these companies make money. Ford or Apple would go out of business with a similar business model. And yet I am not aware of anybody who has lost money on established gun stocks, unless they buy at the top of a cycle and hold for the short term. If the bottom drops out of either company through poor management or malfeasance, the brands are important enough that it is hard to imagine they will ever become worthless or disappear. Even Colt emerged from bankruptcy and is now in an IPO.
I am not a broker, this is not an offer and the above is merely my opinion.

Wall Street in not a rational place. That being said, we all know that MD gun control efforts sparked people to buy guns. I have friends, with no interest in shooting sports, that bought guns as investments thinking that stricter gun control would drive the price up.

These stocks have moved up for the last 8 years because of Obama; and up until 8pm last Tuesday it looked like 8 years more. That stimulus to buy guns out of fear of National gun control is now gone. That will hurt their earnings. The idea that we will suddenly have National Carry is the kind of magical thinking that we like to engage in, but Trump has bigger fish to fry.

The big money that moves stock prices are always looking for the next hot trend. Guns are not it.
Disclaimer I have traded S&W in the past but have not owned either stock for some time.

Well if you listened to me, we picked the bottom.

Vista Outdoor Sports (Symbol: VSTO) is worth looking at, too. It was spun off recently when Alliant Techsystems merged with Orbital Sciences, then split into Orbital ATK (OA) and Vista Outdoor Sports (VSTO).

It owns Federal, CCI, Speer, American Eagle, Blazer, Independence, Hoppes, and Outers, if you like the idea of buying expendables in the realm of firearms stocks, and it also owns Savage Arms, Bushnell, Weaver, Redfield, Simmons, Uncle Mike's, Blackhawk, and others, as well as non-shooting sports outdoor gear like Bell, Bolle, and others.

A good start would be to contact a rep of T. Rowe Price in Baltimore or Vanguard or Fidelity funds. Rather than try to latch onto a few individual stocks, I'd recommend that you buy into a few decent mutual funds in order to limit your risk.

Funds are all graded according to the amount of risk they expose you to, but you and your investment advisor can quickly sort out the amount of risk that you want to assume.

I am in the very late stage of life, 76, and am not active in today's markets. I do, however follow them, and I firmly believe that all US markets are overinflated (I do not think a 18,000+ Dow is supportable long term).

I'd advise you to invest conservatively starting out and limit risk until you have a better handle on investing. Good luck.

I have no business relationship with any of the three firms that I mentioned...they are large, established, reputable and well known.

Lew--Ranger63

Back in the day, Ruger was the best at investment casting. Not just guns, golf clubs and lots of other stuff. I'm not sure where hey are now, but probably pretty heavy on the gun side. Last time I looked, they had beau coup cash, and no debt. (That's been awhile, so check for yourself!)

As for getting started, I've changed jobs a few times (once in order to flee MD) so have various small 401k, IRAs, etc plus the Roth IRA my wife and I continue to contribute to. Most in index funds as has been suggested, but a small portion in individual stocks that I can trade myself. Previous employers made the choices, but I use Schwab (not really a fan), Vanguard (for the index funds), and the dreaded Wells Fargo. Wells Fargo is the one I've found easiest to work with, so most of the individual stocks and trading is there. (Still "buy and hold", not advising day trading!). Vanguard has the better funds, but I don't actually interact with them but once or twice a year.

I would feel better buying their product vs. their stocks right now.

Everything seemed to take a hit the day after the election, but has moved higher again. I don't think Dow 18,000 is sustainable and a correction is probably overdue. The rich have no place to put cash to work so they invest and move it around. The FED is talking about raising rates. The #1 gun salesman for the last 8 years is out of a job. JMO, FWIW.

Doobie said:

I know nothing about buying stock. However, I've always wanted to dabble a little in buying some stocks in firearms. Can anyone point me in the direction of how and where?

Click to expand...

You aren't going to like this answer.

Emotion has no place in investing. If you buy a stock, buy it because you think, based on analysis of information (which, thanks to the Internet, is more readily- and easily available nowadays than ever before), it is undervalued. Do not buy it just because you're interested in the company's products.

Most people are not interested enough to be active investors, keeping track of individual stocks. Such people will do best in the long run by investing in a low-cost fund that tracks the S&P 500. Set up the account so that a certain amount is deducted from your bank account every month. This is called dollar cost averaging: You buy more stock when the market is down and less when the market is up, which, over the long haul, makes for a lower average stock price and thus greater profit. This approach requires almost no time and effort from the investor once it's set up.

If you are intent on buying stocks of individual companies, you need to read the following books, all by Benjamin Graham, all readily available, and listed in order from lightest- to heaviest duty:

The Intelligent Investor (I recommend the edition updated by Jason Zweig)
The Interpretation of Financial Statements
Security Analysis

The first is long but relatively easy reading and will expose you to the basics. The second is short, with zero entertainment value, but contains principles it's easy to get your head around and that you absolutely must know to make intelligent investment decisions. The last is, essentially, an MBA-level textbook, and thicker than the telephone book if you are old enough remember those.

Graham died a while ago and thus the details are kind of dated, but the principles haven't changed.

Above all, don't make the mistake of selling in a panic when the market goes down and buying like crazy when it goes up. That's a surefire recipe for losing lots of dough!

Since you'll be making your own investment decisions, set up an account with a discount broker. No sense in paying for advice you aren't going to use (and, IMHO, would be very wise to ignore--yes, I'm cynical).

HTH. Good luck!

Full disclosure: I own stock in Smith & Wesson (SWHC) (which definitely does not mean you should go out and buy some for yourself!).

If we're talking real investing with serious money, then yes a good broad based fund. For the really KISS principle, you can even bypass the full service broker houses and use a discount internet broker, and purchase ETF's based on established Index . S&P 500 is the well known one, but there are also similar Index's based upon largest 1,000 or 1,500 that generally follow the same pattern, just with the highs usually a little higher, and lows a little lower.

But I get the impression that a lot of people are wanting a small position in a firearms company for symbolic gratification. If so, fine. Take what would be a couple nights out on the town, or maybe what they would have spent on a redundant boomstick, and buy a nominal amount of SWHC or Ruger, and enjoy. Be a better "investment" than playing the Lottery or visiting a casino.

Disclaimer - Back when I was in a position to invest, I did use a small portion to play with individual stocks, and using my generally Contrarian aproach, did well overall. And yes made good $ from the oscillations of SWHC. But don't buy when a company is booming. Buy low, sell high.

Doobie said:

I know nothing about buying stock. However, I've always wanted to dabble a little in buying some stocks in firearms. Can anyone point me in the direction of how and where?

Click to expand...

Go back in a time machine to 11/2007 when Obumer won the election and go long on SWHC or RGR. That's how you buy stock in an anti gun climate. But now we have a progun President coming on. You may make a killing investing in the outfit that supplies genderless comfort blankets to colleges and universities. Long live the Republic!

Mark Cleary
Proud Peruta Vs SD Sheriff plaintiff

Wait a minute,we owe 20 trillion $ to the rest of the world. Trump said he's going to pay that off in the next 8 yrs and that's total BS. Buy real gold and silver, guns and nato ammo if you want to invest. The Dollar could tank at any moment, this is all uncharted territory. The dollar is totally inflated with air and stocks could crash at any minute. I think in 1967 the pound sterling tanked in one day and lost 1/3 of it's value overnight. We could do much worse than a 1/3. No employee at T Rowe Price, Vanguard or Fidelity is going to tell this.

Saw Ruger popped big today and sell @ $65 was filled.

Schipperke said:

Saw Ruger popped big today and sell @ $65 was filled.

Click to expand...

Had 450 shares I bought in November after the election at $53/share, sold today at $64.30....finally the rebound (it will be short) I was looking for....

https://finance.yahoo.com/quote/RGR?p=RGR

Man, it was down to $34 as recently as 2014 (perhaps adjusted for split). Wish I'd have stacked it deep back then.

I bought at about the same price, and we have been rewarded for our patience.
Sales continue to increase over 2015 levels, 2016 being an outlier.

W2D said:

I bought at about the same price, and we have been rewarded for our patience.
Sales continue to increase over 2015 levels, 2016 being an outlier.

Click to expand...

I picked up a 10/22 take down for $250 fwiw.. Over Stocked.