There is always a bull market going on somewhere and today’s feature could offer more than Wall Street’s punk returns as of lately. Smith & Wesson (NASDAQ:SWHC) has appeared on Hillbent’s 5-day new high radar for the last 2 trading sessions, including Monday, despite the market’s recent sell-off. SWHC closed up +8.13% on volume 315% greater than its average daily volume.
Many are familiar with Smith & Wesson as it has been around for at least 150 years and is one of the world’s leading manufacturers of high quality handguns, law enforcement products, firearm safety and security products. As manufacturing goes, this is one industry (defense products & services) that America will never give up or outsource, so expect the company to be around a while longer. Trust me on this one folks. Otherwise, just scratch your head and think about for it a minute or two and I am confident that you will reach agreement with me.
Fundamentally, the company is sound and earns Hillbent’s proprietary composite grade of "A". Over the past 5 years, the company has grown its sales and earnings at respective growth rates of 17% and 15%. Zacks estimates show that the company will grow EPS at +160% for 1Q 2009 and -32.95% for FY 2009 and 96.+71% FY 2010. Going forward, Reuters News reports that the company plans to double its revenue over the next 3-5 years by entering the rifle and long gun markets and via acquisitions that are projected to add $100mm to the top line.
This one is worth further investigation for investors seeking both personal and portfolio protection in a company that seems quite capable of dodging bullets in the investment war, better known as the subprime credit bear market. For any short sellers, listen up: "Do you feel lucky, punk? Go ahead… make my day…"