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KeyBanc Capital Markets downgrades gun sellers Sturm Ruger (RGR -4.4%) and Smith & Wesson (SWHC...

KeyBanc Capital Markets downgrades gun sellers Sturm Ruger (RGR -4.4%) and Smith & Wesson (SWHC -7.5%). Forget about any talk about the Obama or Romney election factor, this is a good ole fashioned valuation call as both stocks have run up solid YTD gains and appear to have maxed out profitability. KeyBanc's ratings: SWHC to Hold from Buy, RGR to Underweight from Hold.
Comments (13)
  • larocag
    , contributor
    Comments (1466) | Send Message
     
    Like I said before, the hoards that think Obama is going to outlaw guns have already armed themselves.
    15 Aug 2012, 11:40 AM Reply Like
  • Mbperry
    , contributor
    Comments (9) | Send Message
     
    Gun sales may have a little to do with the election, but there is much more going on here though. When banks fail certain investments thrive, like gold. After all, with failed banks what can you do with paper money? When governments start failing around the world gun sales thrive, after all, what can you do with paper money or gold? I suppose I'd rather have guns. I credit global governmental uncertainty for the thriving gun sales and as of now it has only been abroad... wait until hints of US issue's start to surface, you might as well throw current and historic valuation out the window because gun sales will continue to multiply. Earnings trend reviews for both of these companies will show you the trend that I believe has just begun. I would say that the biggest part the Obama has played in the success of these companies is not gun control but excessive spending with no real plan for repayment which has taken our economy to where it sits, like Greece and the rest of Europe, the United States will have a day of reckoning in the future. Perhaps the only thing that will be selling is the products of SWHC and RGR.
    16 Aug 2012, 12:49 AM Reply Like
  • larocag
    , contributor
    Comments (1466) | Send Message
     
    Yeah, a bunch of the country has checked-out. Have fun in your bunker.
    16 Aug 2012, 10:57 AM Reply Like
  • Anton Ramish
    , contributor
    Comments (179) | Send Message
     
    unfortunately this one is a wild card and I will not touch it...
    15 Aug 2012, 12:14 PM Reply Like
  • garyjohnson
    , contributor
    Comments (45) | Send Message
     
    It is obvious that the author has not been in a gun store recently.
    15 Aug 2012, 12:46 PM Reply Like
  • Mbarnett
    , contributor
    Comments (4) | Send Message
     
    Yeah, keep selling it so I can continue to buy it cheaper.
    15 Aug 2012, 05:40 PM Reply Like
  • MichaelJ8
    , contributor
    Comments (654) | Send Message
     
    going to have to disagree about this one
    15 Aug 2012, 10:32 PM Reply Like
  • Mbperry
    , contributor
    Comments (9) | Send Message
     
    Gun sales may have a little to do with the election, but there is much more going on here though. When banks fail certain investments thrive, like gold. After all, with failed banks what can you do with paper money? When governments start failing around the world gun sales thrive, after all, what can you do with paper money or gold? I suppose I'd rather have guns. I credit global governmental uncertainty for the thriving gun sales and as of now it has only been abroad... wait until hints of US issue's start to surface, you might as well throw current and historic valuation out the window because gun sales will continue to multiply. Earnings trend reviews for both of these companies will show you the trend that I believe has just begun. I would say that the biggest part the Obama has played in the success of these companies is not gun control but excessive spending with no real plan for repayment which has taken our economy to where it sits, like Greece and the rest of Europe, the United States will have a day of reckoning in the future.
    16 Aug 2012, 12:52 AM Reply Like
  • TLaughery
    , contributor
    Comment (1) | Send Message
     
    I'll still like that nice 3.4% yield from RGR to go along with their 29% ROE.
    17 Aug 2012, 12:16 AM Reply Like
  • mope940
    , contributor
    Comments (42) | Send Message
     
    Pointy headed analysts are clueless. Lots of sales and profit just because lots of folks want firearms. Nobody gives a $hit about Buckwheat. Guns are just fun although I would stock up on ammo if for some reason that idiot Biden moved up a notch.
    17 Aug 2012, 05:59 AM Reply Like
  • screwthemarket
    , contributor
    Comment (1) | Send Message
     
    This is the same "analyst" who covers Brunswick and Mattel and they come-up just before options expire? If that's not market manipulation, I dunno what is. What if a casino said no bets on number 12 on a roulette wheel. And yet we let these morons get away with it - in fact this idiot trader got an award - so buy a Ruger and have some fun.
    21 Aug 2012, 09:25 AM Reply Like
  • Anton Ramish
    , contributor
    Comments (179) | Send Message
     
    rgr is just too obvious a trade.
    22 Aug 2012, 01:02 PM Reply Like
  • Anton Ramish
    , contributor
    Comments (179) | Send Message
     
    8/22. if there is going to be an entry point in this market than it could happen within the next 10 days. Eye S&P 1390/95
    22 Aug 2012, 01:13 PM Reply Like
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