Buy, buy, buy!

[ericire12]

Forbes recommends Sturm, Ruger stock:

http://www.forbes.com/2009/03/10/rgr-scs-deck-personal-finance-investing-ideas-guru-picks.html

Jim Barrett, director of research at CL King, rates Ruger a "strong buy" with a price target of $11. In a client note, Barrett wrote that sales are benefiting from a surge in gun sales due to the arrival of the new Democratic administration in Washington. But he also likes the company's strong balance sheet; thinks management may be closing in on an acquisition as few shares were bought back in December and none were repurchased in November; and argues that the gun maker appears in the early stages of a successful turnaround with prospects that revenues and earnings could surprise to the upside in 2009.

Turning to fundamentals, Ruger is generating good cash flow (operating cash flow is higher than profits), looks well run with operating margins over the trailing 12 months of 7.41% and sports a return on equity over the trailing 12 months, a key measure of profitability, of 12.23%.