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The smart stock folks out there have been longing the gun and ammo manufacturers. Their stocks seem to go up every time there is some sort of democratic-related kerfuffle afoot.
 
Overnight said:
The smart stock folks out there have been longing the gun and ammo manufacturers. Their stocks seem to go up every time there is some sort of democratic-related kerfuffle afoot.
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Haha, good one.

Same category where one goes long on toilet paper manufacturers prior any virus, or fishing companies in case fiat stops working and folks will be changing gold for the fish.
 
Overnight said:
The smart stock folks out there have been longing the gun and ammo manufacturers. Their stocks seem to go up every time there is some sort of democratic-related kerfuffle afoot.
More...
Omg,

No. "The smart stock folks" don't play into sucker games.

Here, from 2 months ago. It was over $22.
I let stoney know what was up.
It's $17.30 now.

vanzandt said:
Well, its definitely an election play. And now with all the social unrest, I'm sure they'll beat on the top and bottom lines as the last 3 months have more than likely bode well for gun sales. They certainly did in Q2.

Thing is Stoney, there's a lot of competition in this business. Plenty of private manufacturers. If you look back, it sells off after every election. It did however keep climbing in 2012 after Obama got reelected. It leveled off and then ran like a banshee as Hillary gained popularity, then it crashed from $22 to $6 by early 2018 on Trumps win.

It may keep going, but its really a stupid long term investment if you think about it. If Trump wins, it dives again. If Biden wins and more 2nd amendment restrictions are put in place, yeah they'll see another bump, but then sales will fall as more prohibitive policies come into effect. The other thing you have to ask, is there a point when everyone who is going to buy a gun, bought a gun?

It trades at 17X FCF.
If it gets too much higher, it goes on the short list.
I bet it sells off on earnings as they won't provide guidance.
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If you think a 25% drop in two months is smart....

But on the other hand.... if you see someone call it out as a short and nail that 25% drop (albeit I had none).... then you know who "the smart stock folks" are.

The gun stock trade going into an election is the oldest and most predictable there is. It sucks in idiots and it never fails.

Now... who's the "smart stock folk"?

..... this place...
:banghead:
 
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