Gunmakers' shares take off as orders jump

Sturm, Ruger shares rise more than 12% after it says it's received orders for more than 1 million units and won't take new orders until after May. Smith & Wesson shares rise, too.

By Charley Blaine Mar 22, 2012 2:59PM

Updated: 3:08 p.m. ET

 

It's a great time to be a maker of handguns.

Just ask Sturm, Ruger & Co. (RGR), whose shares are up $5.50 to $47.80 this afternoon after hitting an all-time high of $47.88.

Reason: The gunmaker announced late Wednesday that it has received wholesale orders for more than 1 million units so far this quarter. That's more than the company can manufacture. So it has stopped accepting new orders until the end of May.

The shares are up 960% since bottoming in November 2008.

The company makes rifles, shotguns, pistols and revolvers. Sales in 2011 were $328 million, up 28% from a year earlier. The company earned $40 million or $2.09 a share, up from $28.3 million, or $1.46 a share, in 2010.

Sales were up 81% since 2008, reflecting worries about the economy and fears that President Obama and Democrats might try to rein in gun ownership. (There have been no efforts, in fact.)

Business is great for rival Smith & Wesson Holdings (SWHC), whose shares are up 86 cents $7.76 this afternoon. They hit $8, a 52-week high, and are up 383% since bottoming at $1.60 in October 2008.

Smith & Wesson's backlog at the end of January was $198.5 million, up 169% from a year earlier.

11Comments
Mar 23, 2012 3:49PM
avatar

Folks, it is simple, typical  PR minipulation that both sides use. This time the NRA and  extreme right tells America that Obama will take away your guns which in truth can not happen because of the House Republican majority. It's raw meat for the base, that convinces people to buy as many guns as they can, causing supply demand shortages that raises prices, increases profits that allows more money to go to the gun lobbies who pay off the politicians.  Taking money from the people to line the pockets of the gun makers, lobbyists and politicians Brilliant!  Republicans and democrats cut from the same cloth, no you don't see it because you don't want to ever think a corporation would ever do such a terrible thing to the American people.  Hundreds of millions of guns out there and do you really think any force can take them away. Get real, how many do you really need?  Oh by the way,  how many gallons of gasoline could you buy if you didn't just spend $ 500-$1000 on another shotgun or glock?  How many gallons if you wern't spending $ 100 a week on cigaretts and booze? 

Mar 23, 2012 11:00AM
avatar
I think that I need to be on the waiting list.
Mar 23, 2012 10:28AM
Mar 23, 2012 10:15AM
avatar
They didn't wait long this morning, at 1006 hrs the call came to accelerate the selling so down we go...Why? Because they can, no specific reason....Remember, news do not move markets, people do and these manipulators are taking over and doing whatever they want so far this morning...Hopefully this afternoon something can be done...Its friday, not a good thing
Mar 23, 2012 9:46AM
avatar
This friday morning's opening not unlike the last few days; we call it as we see it folks and manipulators are once again dominating on and off the floor and bringing us down because they can...We know its very early but that's what's going on right now here...Lets see how things develop...More later.
Mar 22, 2012 8:46PM
avatar

I've noticed something rather curious.  Next time you are in Wal-Mart or Gander Mountain, or Cabela's or a similar place, check the prices on the handgun amMunition and keep track of it.  It seems like the prices raise and fall and are defendant upon any civil "unrest" taking place - mostly in the USA, but sometimes overseas, as well.  When "Occupy" was front page news, ammo prices were higher.  Another "protest" march in NY or elsewhere, the prices are up again.  It's almost like the stock marker for civilian activity.  I guess that is to be expected.

 

Mar 22, 2012 7:12PM
avatar
the feds are trying to shut them down.  why do you think there is a big increase in sales. the gun companies s/b thanking obama and funneling money into a pac for his election. sales are sky high.
Mar 22, 2012 6:52PM
avatar
Nice to see some American manufacturing companies doing well, and producing quality products.  I just hope that we the people can make sure that the federal government doesn't try to shut them down.
Mar 22, 2012 4:14PM
avatar
If you think there has "been no efforts, in fact" you have been asleep.  Consider Hillary's discussions with the UN about unconstitutionally banning guns for Americans, and the Democrat gunrunners-to-Mexico attempts to discredit gun dealers so that private gun ownership can be further restricted.  No wonder gun sales are up!
Mar 22, 2012 4:04PM
avatar
Justice in the barrel of a loaded gun.
Mar 22, 2012 3:25PM
avatar
People are buying guns so that when the music stops they can take their friggin chair.

If you think you are going to get your chair with nice language and please help me waaaa. Yeah forget it.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
266
266 rated 2
452
452 rated 3
702
702 rated 4
671
671 rated 5
604
604 rated 6
640
640 rated 7
495
495 rated 8
267
267 rated 9
158
158 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ABBVABBVIE Inc10
ATVIACTIVISION BLIZZARD Inc10
CTSHCOGNIZANT TECHNOLOGY SOLUTIONS10
LUVSOUTHWEST AIRLINES CO.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.