S&W shares

[Jeppo]

Up 29% today on improved sales. 😳

Smith & Wesson Brands, Inc. Reports Third Quarter Fiscal 2024 Financial Results

Q3 Net Sales of $137.5 MillionQ3 Gross Margin of 28.7%; Non-GAAP Gross Margin of 29.1% Q3 EPS of $0.17/Share; Q3 Adjusted EPS of $0.19/ShareQ3 Adjusted EBITDAS Margin of 15.6%Maryville, Tennessee--(Newsfile Corp. - March 7, 2024) - Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based leader...

finance.yahoo.com

 

[Burt Gummer]

How many did you sell?

 

[92G]

My $12.50 puts got assigned about 18 months ago so have been sitting on a SWBI position for a while now. The business always seems undervalued to me. Market cap is well under $1 bil for a major firearms manufacturer. They’re like one govt contract away from a big jump in valuation. My other firearms play has been OLN as they also seem undervalued. RGR never seemed like as good a deal as SWBI and RGR feels farther away from any major contracts. All of this is just my opinion worth what was paid.

 

[turkeydance]

everything is on the upswing.
even gold is going great (for gold).
maybe S&W just "caught the wave"?

 

[S&Wtinkerer]

My $12.50 puts got assigned about 18 months ago so have been sitting on a SWBI position for a while now. The business always seems undervalued to me. Market cap is well under $1 bil for a major firearms manufacturer. They’re like one govt contract away from a big jump in valuation. My other firearms play has been OLN as they also seem undervalued. RGR never seemed like as good a deal as SWBI and RGR feels farther away from any major contracts. All of this is just my opinion worth what was paid.

Ruger just doesn’t seem to get the .gov money and they churn out a lot of great stuff for the civilian market. S&W makes a LOT of cop guns and handcuffs too. They’re no Glock but they have a decent chunk of the LE market.

 

[mostly22lately]

RGR never seemed like as good a deal as SWBI and RGR feels farther away from any major contracts.

I also wonder what to make of this. RGR pays a dividend and in recent years declared more than one special dividend.
Here's the past 5 years of RGR:



This company fascinates me. They have never held any debt, for example. And they have employees who have been there for decades in some cases.

 

[92G]

I also wonder what to make of this. RGR pays a dividend and in recent years declared more than one special dividend.
Here's the past 5 years of RGR:
This company fascinates me. They have never held any debt, for example. And they have employees who have been there for decades in some cases.

RGR is trading at a better price now than past few years. I’ll probably sell some puts in the future.

 

[Button Pusher]

Ruger just doesn’t seem to get the .gov money and they churn out a lot of great stuff for the civilian market. S&W makes a LOT of cop guns and handcuffs too. They’re no Glock but they have a decent chunk of the LE market.

Also make barriers for secured parking lot access.

 

[Stogies]

Surprised their recent "Oops" products have not put a dent in this.

 

[MacEntyre]

Ruger may have redeeming qualities, but if they put the Marlin 39a in mothballs, I won't forgive 'em. The Marlin Product Manager told me the 39a would never be produced by Ruger, because it is too expensive to manufacture. They own three of the best 22 rifles ever made with the 10/22 and the Marlin Models 60 and 39a.

I recently told the product manager that they should make three Marlin reproductions and charge whatever it takes to make a little profit:
The Marlin Model 39a Reproduction should be renamed the Ruger Marlin Model 1897 LL Hepburn 22 Rifle.
The Marlin Models 60 and 70 reproductions should be the Ruger Marlin Glenfield Model 60G Edward Nichol 22 rifle, and
the Ruger Marlin Glenfield Model 70 22 rifle. The Model 70 should use the 10/22 box mag.

Buy Ruger now, before the public learns about my suggestions!

 

[mostly22lately]

The Marlin Product Manager told me the 39a would never be produced by Ruger, because it is too expensive to manufacture. They own three of the best 22 rifles ever made with the 10/22 and the Marlin Models 60 and 39a.

This conversation deserves its own thread.

Henry and Rossi for two examples have zeroed in on the absence of the 39A. How could Ruger bring back a low-margin rifle to this shrinking-demographics market and get any share? They'd have to build it in Mayodan, to start with, and that won't be easy.

Ruger stepped away from shotguns because they could not afford to put a C-note in every box that went out the door. Imagine being in the executive conference room where THAT call was made.

It isn't Ruger I blame for the lack of the 39A and the 60 in stores. The damage to Marlin was done long before Ruger stepped in. At least there still is something left that says 'Marlin' on it that won't be destroyed by the vultures. Could have been worse.

 

[MacEntyre]

This conversation deserves its own thread.

Perhaps... this thread got me thinkin' that soon there may not be any firearms manufacturers in the USA.

How could Ruger bring back a low-margin rifle to this shrinking-demographics market and get any share?

By bringing out a high margin reproduction LL Hepburn Model 1897 22 rifle.

I don't think it will ever happen. 😟

 

[mostly22lately]

Once the folks at Henry can finish getting the Ladysmith WI parts facility doing what it needs to, they can phase out Bayonne completely.

While I would jump at the chance to get a Mayodan-made 39A and I am not the only one, once I can get a Rice Lake H001TLB, that would scratch that itch too.

 

[MacEntyre]

...once I can get a Rice Lake H001TLB, that would scratch that itch too.

I have one with a Lee Shaver Soule style ladder sight. I need to take it somewhere and try it at several hundred yards!



...wait, weren't we talkin' 'bout Smiths?

 

[Button Pusher]

Ruger may have redeeming qualities, but if they put the Marlin 39a in mothballs, I won't forgive 'em. The Marlin Product Manager told me the 39a would never be produced by Ruger, because it is too expensive to manufacture. They own three of the best 22 rifles ever made with the 10/22 and the Marlin Models 60 and 39a.

I recently told the product manager that they should make three Marlin reproductions and charge whatever it takes to make a little profit:
The Marlin Model 39a Reproduction should be renamed the Ruger Marlin Model 1897 LL Hepburn 22 Rifle.
The Marlin Models 60 and 70 reproductions should be the Ruger Marlin Glenfield Model 60G Edward Nichol 22 rifle, and
the Ruger Marlin Glenfield Model 70 22 rifle. The Model 70 should use the 10/22 box mag.

Buy Ruger now, before the public learns about my suggestions!

If they won't manufacturer then they should license it to another company.

 

[MacEntyre]

I bet Uberti and Pedersoli could do a good job making the Marlins that Ruger can't afford to make.