iBankCoin
Stock advice in actual English.
Joined Sep 2, 2009
1,224 Blog Posts

BOOOYAAAHHH RGR

When I’m willing to quote Jim Cramer in my title, the news I’m carrying can only be of such a variety, of such a lofty level, of such unrivaled immaculateness…

RGR just announced $1.20 earnings per share, when analyst estimates were at $1.01. The $1.01 number was already, what? 30% above the December original estimates. We’re now sitting 50% above the earnings trend that was already justifying $55-60 pricing before Newtown.

I know, you paid “professional” analysts are busy frenziedly scribbling your next hate piece on the firearms industry – I mean, Michael Bloomberg hates guns. Michael Bloomberg…

Do you want to see why you’re wrong? Fine, I’ll show you.

Firearm sales are not going to collapse, but rather gradually return to pre-Newtown levels (elevated even as they are) because these are the guys who actually buy guns:

4_wheeler_mudding

Does that look like a source of rational, informed consumerism? All of your logic…roll it into a ball and choke on it. I told you, mere moments after Dianne Feinstein was finished speaking in the wake of the Newtown tragedy, that the cat had been let out of the bag.

Watch the FBI background checks. While the gun debate remains in the forefront of the public sphere (Washington DC or in any of the States), the panic buying continues. And the gun debate can’t get out of the public sphere, because Barack Obama pulled a classic Obama move and opened his mouth when he should have kept it shut. Now, he can’t not push gun control, because a loss this public this early in his presidency would shatter any second term agenda narrative, rendering him a lame duck. It may even now be too late.

Maybe just delete that “gun stocks are overpriced” piece you’re working on. Do yourself a favor and quit while you’re ahead.

If you enjoy the content at iBankCoin, please follow us on Twitter

21 comments

  1. Heaterman

    Agree here that BO and company will keep pushing their agenda and go down in history as the best firearms sales team ever to walk the face of the earth.
    Feinstein and Senator Gillibrand from NY are already flapping their gums about what they will do next.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  2. flicker

    We are witnessing a massive bubble in firearms sales that will never be repeated. This was brought on by not just Obama but many factors starting with BO’s election. Is this all setting up for another war between the states? I sure aa hell hoope not but the trend is certainly in that direction.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Mr. Cain Thaler

      There is not going to be a war among the states.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
    • bottom_feeder

      Massive bubble? These sales have been going strong for years, just nobody was paying attention.

      Every new shooting, every call for more gun control, every new terrorist act, will drive more purchases. In addition, how many people do you know that only own one gun. The current set of owners are looking to add more.

      I personally own 7 shotguns, all hunting varieties and now need something of a short range, short barrel, defend my house tactical sort of thing. People buy a handgun then realize they like it and want another or something different. They shoot it and realize it wasn’t quite what they wanted so get a second. Invite their friends because shooting is fun and the friends buy one.

      ObamaFeinstein have single handedly created a gun craze in this country that will be around for years to come.

      There’s a massive bubble in iPhone’s too… pffftt.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • Po Pimp

        and now need something of a short range, short barrel, defend my house tactical sort of thing.

        Maybe you should move to a better neighborhood.

        • 0
        • 0
        • 0 Deem this to be "Fake News"
  3. Vertigo

    RGR closed the regular session at 50.97, released earnings, and then gained 1.6% in after hours trading.

    You are celebrating. I’m missing something here.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Mr. Cain Thaler

      What are you missing?

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • Vertigo

        Admittedly, RGR crushed estimates. But the stock barely moves – there’s no celebration for the earnings.

        • 0
        • 0
        • 0 Deem this to be "Fake News"
        • Mr. Cain Thaler

          It’s up 5% in two days. It’s not a solar company. And people doubt the sustainability of the gains.

          When we’re in mid summer and FBI background checks are still chugging along at 2 million +, I’d say that might cause a push

          • 0
          • 0
          • 0 Deem this to be "Fake News"
  4. Mr. Cain Thaler

    Hahahaha RGR down 3%. You can’t make this up

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • the raconteur

      What do you think of $RGR as an LBO target? Clean, under levered balance sheet and robust cash flows for at least two years that hasn’t been priced in, IMO. Not to mention it’s still a pretty solid cash cow in “normal” times with little capital intensity.

      Probably easier to run a private gun company rather than deal with the caprices of funds like calpers too.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  5. metalleg

    Gun sales will slow down when everyone runs out of money. Until then, it will remain on fire. People who don’t own guns want to buy and those who already own want to buy more. You can never really own too many although if you do own a lot, you might be labeled a terr’ist.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  6. bottom_feeder

    I agree with almost everything you said but take exception to the picture. I would never take my $10,000 ATV into a mud hole like that. You ever try to clean an ATV all caked up in that shit? No thanks.

    Plus I don’t think you can attribute the massive gun sales to that crowd, they all owned multiple guns before Newton. I believe these sales are being driven by the grammas and grandpas, moms and dads and newly weds who aren’t going down without a fight protecting their loved ones. I’m sure there is a stat some where supporting my thesis.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  7. MuddyLake

    Ugly today. Despite the terrific fundamentals institutional money is choosing to stay away.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  8. Mr. Cain Thaler
    Mr. Cain Thaler

    Well, looks like I’ve been given my comeuppance.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  9. JimH

    RGR is already sporting >90% institutional ownership.
    There won’t be any piling on from the movers!
    (Not at this time, at least)
    I’m looking forward to their 3rd & 4th quarter sales though!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  10. Fly Fraud

    buy some HLF. something is up – wouldn’t be surprised if a major corporate action took place over the next 60 days

    • 0
    • 0
    • 0 Deem this to be "Fake News"