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Smith & Wesson: Cyclical Opportunity With Buybacks On The Horizon
Summary
- SWBI is a deeply cyclical company and any view on it should first assess the stage of that cycle.
- I intend to explain how this cycle works and show that right now, SWBI is close to the bottom of it.
- Even considering bottom-of-the-cycle financials, the stock is cheap in absolute and relative terms.
- The potential of share buybacks in connection with a specific event makes the case even more compelling.
Full time conservative value investor.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SWBI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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