Sturm Ruger Backlog Is Currently Over $$ Half A Billion !

[billt]

http://www.thefirearmblog.com/blog/2013/08/25/ruger-q2-backlog-worth-590-million/


Unbelievable !

[GeorgeCook]

That's an interesting article on Ruger. I do get concerned when articles like this seem not to find anything to be concerned about; it kind of reminds me of the media stories at the height of the real estate bubble. Ruger is a very good company with compelling products, but this article bordered on cheer-leading.

One thing I think this article did not take into account is the availability of ammo. I see it where I am now. ARs are sitting on the shelves, 22 LR firearms are sitting, and handguns are not moving that well. Remember that backlog of orders could vaporize overnight and I think much of it will. The good news I see for Ruger is the expansion of manufacturing they have planned. This is a very positive sign for the company and I think after the big sell off occurs, I will step in and buy this stock for the long term.

Don't get me wrong, I like Ruger and I'm bullish on the company, but I think a wise investor would do themselves good and consider other factors that will will affect future sales than what this article points out.

[tombogan03884]

If you are in the market for stocks, S&W and Ruger have been the among  best performing stocks for several years now.

[alfsauve]

If you are in the market for stocks, S&W and Ruger have been the among  best performing stocks for several years now

I elected to buy a couple of lots of S&W Holding after I heard the CEO speak last year.  I didn't have enough money to get both stock in both companies.  As much as a social/political statement as an investment.

Interestingly SWHC is doing so good and decided the best investment they could make with their spare cash was to buy back some of their own stock.  I declined and am holding on to mine for it's growth.   It only drove up the price more.  One thing that I found strange in their buyback offer was a statement to the effect,  S&W has never paid cash dividends and the directors have no intention of ever paying them.  Which is fine.  I'm in it for the long term growth.

Of course these stocks were cheaper last year than they will be tomorrow morning.  (S&W just won LA county Sheriffs' contract.)

[santahog]

If I had the cash, I'd be on the backlog list as well..
I want the new Commander and the 556.. One day..

[Sponsor]

[TAB]

how many years of production is that?   sounds a bit over inflated if you ask me.   it takes lots of cash to increase production.  Its not simply a matter of hiring staff or buying more machines.  Often the limiting factor is raw materal and/or componets.  Adding 10+ cnc machines is nothing compared to the cost of say a new foundry.   ruger does alot of lost wax investment casting,  building a new casting foundry could easliy cost well into the 9 digets.  Then there is getting more steal, shiping the parts to be finished... It could easliy cost 10 digets all told.

[dipisc]

Hi;

     I wonder if Barry is going to get a bonus/cash award for being the BEST Gun Salesman for the past 2-3 years ? 

     The Gun Manufacturers should at least give him a plaque or something  !

[Solus]

Talk about a market situation that makes the accounts want to both dance and weep.

[fatbaldguy]

Hi;

     I wonder if Barry is going to get a bonus/cash award for being the BEST Gun Salesman for the past 2-3 years ? 

     The Gun Manufacturers should at least give him a plaque or something  !

How 'bout just the plague?  Bubonic!

[billt]

Adding 10+ cnc machines is nothing compared to the cost of say a new foundry.   ruger does alot of lost wax investment casting,  building a new casting foundry could easliy cost well into the 9 digits.

I tell this to people all the time when I start hearing how Ruger Investment Casts it's receivers because it's "cheaper". Most don't have a single clue of what they're talking about.