Author Topic: Smith & Wesson Stock  (Read 320 times)

alfsauve

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Smith & Wesson Stock
« on: June 19, 2020, 10:54:21 AM »
As many know.  S&W started buying other outdoor brands to diversify.  TC, Schrade, Wheeler, Crimson Trace to mention a few.  (Also Lockdown which I'm looking at for car security when traveling).

Their stock had always done really well and back 10 years a go a bought a "lot" and kept it until they changed their name.   They did  REALLY well stock price wise, but, and the directors were very up front about it, they never paid dividends and they never intend to.  Since they were diversifying the directors decided to change the name from S&W Holding to American Outdoor Brands(AOBC).

Now they've decided to divest the S&W, the gun part of the business, from AOBC.  Actually the way it's going down, they've changed their name and stock symbol from AOBC to SWBI (Smith Wesson Brands Inc).  Then they'll spin the non-gun part off into a new American Outdoor brands stock symbol AOUT.  Confusing, right.

How are they doing financially?   If you'd bought AOBC a year ago (~$9/sh), now SWBI is now trading for >$18/sh.  Most of that gain coming in the  last 30 days.   How will they do in the future.   Anybody's guess.   None of the rating services, e.g., Morning Star, rates SWBI so you're on your own.

I don't know when the cutoff date is, but hey, I'm a gambler, of sorts.  I can go 100 shares and see what happens.  Besides now that they've changed the corporate name back to S&W it's an investment statement.
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tombogan03884

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Re: Smith & Wesson Stock
« Reply #1 on: June 19, 2020, 12:47:41 PM »
Ruger and S&W are the only publicly traded gun companies as far as I know.
I'm the NRA, and I ain't giving up squat.

alfsauve

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Re: Smith & Wesson Stock
« Reply #2 on: June 19, 2020, 02:20:01 PM »
In the US, yes.  I'm dabbling just to see what the spin off does.   It's basically a free dividend (no tax consequence, I think).    In straight forward accounting, the sum of the companies stock after the split should equal the value of original company  the day before the split.   But what usually happens in a split is that both companies stock rise above that level.   However because of lawsuits pending against S&W, AOUT may rise and SWBI may fall.  It's a minor gamble.  Much better odds than the lottery.

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tombogan03884

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Re: Smith & Wesson Stock
« Reply #3 on: June 19, 2020, 06:31:22 PM »
I know a 18 year old young lady who has been doing similar through high school.
The last 3 years she has not had a weekend off.
I know because she spent part of each of them fetching me coffee.  ;D
She don't need no steenkeen student loans.
I ask her advice sometimes.
And she is a self informed Conservative with 2 liberal parents.
Her I respect.
Can't work up much hate for her parents either, even if they are democrats.
They did a good job.
I'm the NRA, and I ain't giving up squat.

MikeBjerum

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Re: Smith & Wesson Stock
« Reply #4 on: June 20, 2020, 08:36:19 AM »
I have probably followed the foil hat crowd on these business acquisitions over the years with concern what it would ultimately mean for the firearm industry.  What will it mean for Smith & Wesson, firearms, when the firearms are separated from everything else that they have funded?  What is the reason for the Board to divide into two separate entities?  Do they fear what will happen in the stone buildings in D.C.?  Do they fear the Courts and anti gun law suits?  Are they going PC and getting ready to dump guns?
If I appear taller than other men it is because I am standing on the shoulders of others.

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Re: Smith & Wesson Stock
« Reply #5 on: Today at 12:45:59 PM »

tombogan03884

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Re: Smith & Wesson Stock
« Reply #5 on: June 20, 2020, 08:46:15 AM »
The acquisitions are meaningless it's been going on ever since there were business'.
Look at the history of Colt, or Remington.
They've been sold more than a hooker on pay night.
The Conglomerates are no different than FN, or DWM.
It's just good sense.
I'm the NRA, and I ain't giving up squat.

alfsauve

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Re: Smith & Wesson Stock
« Reply #6 on: June 20, 2020, 09:25:41 AM »
Of course if the firearms business ever tanks the other "outdoor" enterprises will also be affected.

What I see is that by separating the firearms business then they can take legal and financial hits (bankruptcy/reorg) without affecting the other product lines.  Legal and financial precaution.  Also some investors my shy away from firearms companies but not "outdoor" products in general.
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USAF MAC 437th MAW 1968-1972

alfsauve

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Re: Smith & Wesson Stock
« Reply #7 on: July 10, 2020, 10:29:55 AM »
Just an update.   Purchased SWBI on 6/19 at $18/sh.    At this moment 3 weeks later it's trading for $22.15/sh.   That's a modest 23% increase in 3 weeks.   Annualized that's 399%.     (But remember kiddies, current performance is no indicator or guarantee of future results.)

Things could go south at any moment, especially at election time.   
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USAF MAC 437th MAW 1968-1972

TAB

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Re: Smith & Wesson Stock
« Reply #8 on: July 10, 2020, 11:02:53 AM »
Just an update.   Purchased SWBI on 6/19 at $18/sh.    At this moment 3 weeks later it's trading for $22.15/sh.   That's a modest 23% increase in 3 weeks.   Annualized that's 399%.     (But remember kiddies, current performance is no indicator or guarantee of future results.)

Things could go south at any moment, especially at election time.   

Sell.   


I always break all the clay pigeons,  some times its even with lead.

alfsauve

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Re: Smith & Wesson Stock
« Reply #9 on: July 10, 2020, 02:30:30 PM »
No. No.  We're waiting for the American Outdoor brands to be spun off, AOUT.   Then we'll see what the stock do.  I'm betting on doubling my money before November.
Will work for ammo
USAF MAC 437th MAW 1968-1972

 

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