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Tag Archives: gun manufacturers

Gun Drama Is A Distraction From Making Money

RGR prices spiked this morning back above $50, and I have to say my buy from $48 is looking good. I have made big money on every single dip, purchase, accumulation, or wild guess I have made so far in this stock, starting in December.

Then just before noon, the Senate announced cloture of the background check deal and around that time RGR began to settle back down again.

Look, I’m going to be very straight with you. This measure means nothing. N-O-T-H-I-N-G.

Look where we’re at; this whole debate began with Dianne Feinstein so coked up on how many different makes and models of weapons she’d have free reign to ban, there was almost too many to decide. There was no limit to the damage to be done to gun manufacturers. Private gun ownership was in check.

Where are we now? Record sales and surging background checks later, and they’re trying to decide if they even have the ability to mandate closing loopholes that largely don’t exist on the State level; it remains to be seen whether that’s on every purchase (a measure as damn near a plurality of this country has ever supported), or just a tiny fraction of all gun sales – you know, weapons you buy between 3-6am while standing on your left foot in a gymnasium…or something

This is over. The likes of Piers Morgan are now scraping the bottom of the barrel, desperate not to look like total fools. Because they’re ultimately advocating authoritarian controls here. And the only thing worse than an authoritarian…is an ineffectual authoritarian.

I told you months ago that B. Obama would hang himself in his own eagerness. The man who began his first term parading historians in front of himself, pridefully seaking to cement his legacy for the ages, has now managed to choke off his second term before accomplishing anything. He made the cardinal error. Democrats have zero leeway to get dragged into the gun debate, because more than half the country doesn’t trust them with it.

Game. Match.

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Gun Frenzy Won’t Slow Down

The most popular (and esoteric) argument for gun stocks being overpriced seems based largely on a riddle that goes something like this:

“You tell me, what happens when gun legislation passes and the buyers realize everything will be okay?”

Which is lovely. I enjoy riddles. And word games. And the works of Nabokov. But this isn’t about playful respite; this is about making money and being right. It becomes my duty, therefore, to thrash you.

I now present three illuminating bullets (I just proofread this and realized I made a pun):

* Stocks like RGR are only trading where they were before sales went crazy
* This legislation will not be hindering gun makers – background checks are perfectly doable because they will most likely have maximum waiting periods attached (1 month or less or else all clear); that’s a minimum to get the measure through the House (if anything even can)
* And, the big shebang…RGR hasn’t raised gun prices and I’m not sure the others have either

Yeah, see that’s the big open secret here. Guns are selling out of stock, but RGR’s CEO was adamant that his company would not be raising prices because, as he phrased it, “gun buyers as a group have long collective memories.” He doesn’t want to prey off his customer base, so RGR hasn’t raised weapons prices at all.

Ergo, once this bill passes and people go “oh, wait, that’s not so bad,” there will be no price incentive for them to cancel their order (“I could sit back and wait for prices to calm down…”). That, right there, isn’t happening. The guns that have been jumping in price are private sales. So, in RGR’s case (and I suspect the other manufacturers as well), there’s no clear financial edge to back out.

There is, however, still the looming possibility that Republicans could lose more seats (remind me, what is the popularity of the GOP at the moment?)…

(I told you I like riddles too)

And so, I am afraid (I’m not actually afraid) that this robust bounty of profitability RGR and the gun market at large are seeing is very much sustainable for a duration of at least a year (possibly two). While eventually and inevitably these orders will slow down, I really couldn’t care less. You see, the stocks are not pricing in this raw influx of cash, and one solid year of the orders they’re experiencing is the equivalent of several years worth of business, all front loaded and with minimum inventory risk attached.

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