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It's Time to "Pull the Trigger" on Gun Stocks
#1
http://www.marketoracle.co.uk/Article39468.html

Quote:It's Time to "Pull the Trigger" on Gun Stocks

Three Gun Stocks to Buy Now
There are two great pure play stocks for buying guns -- Sturm, Ruger & Co. (NYSE: RGR) and Smith & Wesson Holding Corp. (Nasdaq: SWHC).

The biggest manufacturers in the business have been making shotguns, pistols, revolvers, and semi-automatic weapon guns for decades and they sell thousands of them every day.
RGR has a market cap of $1.1 billion and price/earnings ratio of 15.9. The company also pays a solid dividend of 2.7% on a low 34% payout ratio. The company has an ultra-low price-to-earnings-growth (PEG) ratio of 0.24 and no debt.

Revenue increased by 52% last quarter and earnings jumped by 88%.

The smart money likes what it sees with RGR - over 91% of its stock is owned by institutions, including The Vanguard Group Inc. and Allianz Asset Management AG.

SWHC has a market cap of $661 million and a P/E of 12. Although it pays out no dividend, the stock has more than tripled since November 2011. SWHC also sports a low PEG of 0.27.

Revenue climbed by 39% last quarter and earnings skyrocketed a whopping 225%. The company has more than enough cash to pay off its debt and institutions hold about 60% of the stock.

If ammo is your vice, think Winchester, a brand owned by Olin Corp. (NYSE: OLN).

OLN has a market cap of $1.8 billion and a P/E of 12. The company pays a juicy 3.48% dividend with a reasonable 43% payout. Earnings jumped by 88% on revenue growth of 31% last quarter.
Ladies of the Second Amendment

"I regard giving as necessary to right the balance" Hu Chung

http://appleseedusa.org/



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#2
Publican;87897 Wrote:http://www.marketoracle.co.uk/Article39468.html

Quote:It's Time to "Pull the Trigger" on Gun Stocks

Three Gun Stocks to Buy Now
There are two great pure play stocks for buying guns -- Sturm, Ruger & Co. (NYSE: RGR) and Smith & Wesson Holding Corp. (Nasdaq: SWHC).

The biggest manufacturers in the business have been making shotguns, pistols, revolvers, and semi-automatic weapon guns for decades and they sell thousands of them every day.
RGR has a market cap of $1.1 billion and price/earnings ratio of 15.9. The company also pays a solid dividend of 2.7% on a low 34% payout ratio. The company has an ultra-low price-to-earnings-growth (PEG) ratio of 0.24 and no debt.

Revenue increased by 52% last quarter and earnings jumped by 88%.

The smart money likes what it sees with RGR - over 91% of its stock is owned by institutions, including The Vanguard Group Inc. and Allianz Asset Management AG.

SWHC has a market cap of $661 million and a P/E of 12. Although it pays out no dividend, the stock has more than tripled since November 2011. SWHC also sports a low PEG of 0.27.

Revenue climbed by 39% last quarter and earnings skyrocketed a whopping 225%. The company has more than enough cash to pay off its debt and institutions hold about 60% of the stock.

If ammo is your vice, think Winchester, a brand owned by Olin Corp. (NYSE: OLN).

OLN has a market cap of $1.8 billion and a P/E of 12. The company pays a juicy 3.48% dividend with a reasonable 43% payout. Earnings jumped by 88% on revenue growth of 31% last quarter.

The next earnings report for these companies is going to insane and drive volume imo. Not sure how much headroom is going to be left after that though...unless something else happens like another mass shooting. Like the cash for clunkers deal after the surge buying ended sales for the rest if the year tanked because everyone that was planning on buying a new car did so and the market dried up for the rest of the year. It looks like a good bet to me in the short term, but I would be watching it like a hawk and not intend to ride it for the long term (several months), unless we're talking years. Just my 2 cents, but even that is highly subject to the whims of the capitol hill asylum.
The forum poster formerly known as Emoticon...
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#3
As all stocks, your advice to be careful is sage. I am in for long haul.

There will be many more gun grabs before I croak.
Ladies of the Second Amendment

"I regard giving as necessary to right the balance" Hu Chung

http://appleseedusa.org/



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#4
Screw that!

[Image: RGR_zps5c0f7724.jpg]

Buy low, sell high, not the other way around!
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#5
Please, never buy any stock for the short term (under 5 years). Stocks grow because companies and their earning grow, I tend to think that those like Ruger are already at full capacity so unless they plan on opening a few more factories they are maxed out.

That said, I've always like OLN as a long term hold but not for the ammo. Adjusted for inflation they have never been a stellar performer and would not buy now if I did not already own them.
Dave, proudly annoying members of pa2a.org since Sep 2012.
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#6
Dave;87989 Wrote:Please, never buy any stock for the short term (under 5 years). Stocks grow because companies and their earning grow, I tend to think that those like Ruger are already at full capacity so unless they plan on opening a few more factories they are maxed out.

That said, I've always like OLN as a long term hold but not for the ammo. Adjusted for inflation they have never been a stellar performer and would not buy now if I did not already own them.

That was a fine strategy...until it became in vogue and popular for major corporations to routinely criminally cook the books and fold like Enron or go the way of Bear Sterns. I don't trust any company these days to still be viable in 5 years. I don't even trust that the dollar to be viable on that timescale. What happens to that stock if we get another really bad mass shooting when they suddenly try to ban semi-autos and half the market vaporizes overnight until the fight gets to the supreme court?

I seriously cannot think of a single company I would trust with my money on a 5 year time-scale. I play on hysteria. I bet that the Deep Water Horizon oil spill wasn't going to kill BP or TransOcean and when it got out of the public eye it would bounce back. Or Toyota during the spontaneous acceleration recalls...

Media hype and hysteria are predictable, unethical dealings in a back room are not imo. I also bet on the fact that the financial world has a very short attention span these days as well.
The forum poster formerly known as Emoticon...
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#7
How does someone who has zero experience investing in stocks go about buying some? E-trade, and shit like that, or what?
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#8
Yup. Sign up with Tdameritrade, etrade, sharebuilder, etc. Really easy, they typically require you to fund your account upon opening with some minimum amount. They may have dropped that requirement in the years since I opened mine.

Shop around, see who has the lowest overhead/per trade costs, etc. I have Tdameritrade, and no complaints. I havent tried the other two, and I am sure there are others out there as well. Good luck!

Sent from my phone using Dumb Thumbs
conefree, proud to be a member of pa2a.org since Feb 2013.
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#9
topsykretts;88229 Wrote:How does someone who has zero experience investing in stocks go about buying some? E-trade, and shit like that, or what?

Stay away from individual stocks because even the experts will tell you that its near impossible to just pick a few successfully. For you there would be no better option that the Vanguard S&P Index fund. Google to see the stocks included. It also has low fees. After the initial investment we can buy more for as little as $ 50 a month.
Dave, proudly annoying members of pa2a.org since Sep 2012.
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#10
Dave;88334 Wrote:
topsykretts;88229 Wrote:How does someone who has zero experience investing in stocks go about buying some? E-trade, and shit like that, or what?

Stay away from individual stocks because even the experts will tell you that its near impossible to just pick a few successfully. For you there would be no better option that the Vanguard S&P Index fund. Google to see the stocks included. It also has low fees. After the initial investment we can buy more for as little as $ 50 a month.


It depends on what level or risk he's willing to incur and how much he has to play with. I wouldn't advocate him putting all his eggs in one basket, but even with a few grand its possible to trade in individual stocks without the trade fees and taxes killing him. For a new trader I would give you the following suggestions though:

1) Don't go into this expecting to profit at the start. Treat this like taking a firearms handling class, the goal is to learn when you start out, that initial experience usually has a cost attached to it.

2) You WILL lose. You might lose right off the bat, you might not, but at some point you will get bit no matter what you do. The goal obviously is to profit more times than you get bitten. As such, do not trade with ANY money you can't afford to lose.

3) Never buy something with the intent a stock will do something and expecting you will have a certain amount of capital some time down the line. Basically don't bank the rent on what you think a stock is going to do. It sounds stupid but people get into this situation and quickly dig themselves in deeper than they can handle. Don't try to dig yourself out with a tip or a hunch.

4) Never trust a broker as far as you can throw them. At most people's level of the game brokers are making their money off the trade fees, not because they have a fucking clue about what they are doing with regards to actually picking stocks. If they knew what they were doing with stocks they would be trading for the big time players or hedge funds making real money rather than sitting at your local crappy Scottrade outpost with a cheap suit and tie on pretending to be Gordon Gekko. They just want you to be constantly turning your portfolio over and making trades so they can get their cut to meet their quotas. Do your own research, do what you want with YOUR money. They work for you, not the other way around. I've never met a broker at that level whose advice I thought was actually worth a damn.

5) Just a general guideline...If you do make a profit occasionally drain off a percentage into what you think is a safer investment (take your pick as to what, property, metals, CD's if the interest rate ever bounces back, etc, just anything but stocks), don't just keep rolling profit over and over and just skimming off to spend.

6) Paper trade for a couple months at least before actually playing with your real money. You can learn a huge amount about the way things function and how the markets react with an excel spreadsheet with imaginary money with just 10 minutes a day pulling quotes religiously.

7) Avoid margin trading, shorting, penny stocks, mining stocks and things of that nature until you've really got a good handle on things. Even then if you decide to margin trade proceed with extreme caution. You can get in trouble in a big hurry in those arenas.
The forum poster formerly known as Emoticon...
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