KF6ZPL
Recreation Advocate
Reged: 02/15/00
Posts: 3949
Loc: Lakeside, CA
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Sturm Ruger Sees Record Gun Orders On Election Fears
By VANCE CARIAGA Posted 03/29/2012
Gun maker Sturm Ruger (RGR) announced last week it received 1 million orders in the first quarter and wasn't taking any more until it could fill what it had.
"Despite the company's continuing successful efforts to increase production rates, the incoming order rate exceeds our capacity to rapidly fulfill these orders," the company said in a press release.
The gun business is booming. Analysts and retailers say it's driven by the prospect — fear to some — that President Obama will be re-elected and crack down on gun ownership.
Last month, National Rifle Association President Wayne LaPierre said the administration's low-key approach to gun issues was "part of a massive Obama conspiracy to deceive voters and hide his true intentions to destroy the Second Amendment during his second term."
Not all analysts take that view, however.
Strum Ruger makes pistols, revolvers, rifles, shotguns and accessories primarily for use in the U.S. It sells into several markets, including law enforcement, the military, sporting goods and home defense.
That last category has been the primary driver of Sturm Ruger's recent surge in stock price and financial results, analysts say.
"We have continued to see elevated demand in concealed carry/personal protection/self defense, an area in which (Sturm Ruger) has excelled, as well as a recent resurgence in the popularity of tactical rifles," KeyBanc analysts said in a February note.
'Favorable Tail Wind'
They forecast the firm will benefit from a "favorable tail wind," but fear margins have peaked.
Sturm Ruger has reported four straight quarters of accelerated sales growth. Revenue expanded 45% last quarter. Earnings have risen at least 80% the last two quarters.
Sturm Ruger's stock price hit an all-time high of 50.59 Monday, a few days after the company said it would stop taking orders for more guns until it clears a huge backlog.
Obama had a track record as an Illinois legislator of backing gun control legislation. But some say fear that Obama will crack down on gun ownership is overblown, says Bret Jordan, an analyst at Avondale Partners.
"There's not much evidence that Obama has been a threat to Second Amendment rights," he said. "I don't think there's much prospect of him making a run at the Second Amendment in a second term because he still will be dealing with a Republican Congress."
But the image of Obama as anti-gun persists. In an ironic twist, that image has been great for business.
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John Stewart
Editor - 4x4Wire.com
4x4Voice
Board Member BlueRibbon Coalition
CA4WDC Resources Consultant
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haztoys
Rock Warrior
Reged: 08/03/09
Posts: 629
Loc: Prescott AZ
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May I ask where and why you found this info ..?
Did you now Ruger had 93k guns on the factory floor ..Three days after the 08 election they were on trucks out the door sold ...? When Clinton got in Rugers sales spiked then came down .. With Obama sales spiked even more came down some and has stayed very high still...Ruger,s tracking of Obama would say he's very anti gun ..Smart guy Obama did some anti-gun stuff very soon in his term ...Could see it would not get him a second term so he checked up ...
Big number of FFL's gone after and gotten ...
Rugers really growing plant wise too.. Its doubled the floor space ..I just got done with a few month assignment with Ruger..I was SHOCKRED..  at the number of gun's that left the shipping docks..
I work at a conglomerate that has a engineering side and does work for Ruger and a lot of gun engineering for others ...A lot of new engineering in the gun world as of late ...Theres a manufacturing part of the conglomerate too..Shocking the number of gun parts and guns they spit out .. And thats small arospace shop say 80 people ...
Edited by haztoys (04/08/12 12:53 PM)
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KF6ZPL
Recreation Advocate
Reged: 02/15/00
Posts: 3949
Loc: Lakeside, CA
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The "where and why" is because I receive a lot of outdoor recreation related press releases and newsletters from a wide variety of sources which include hunting (and guns).
The specific source for this was Investors Business Daily.
Not surprised about the numbers. I had a lengthy wait for my Ruger Bearcat .22 last year.
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John Stewart
Editor - 4x4Wire.com
4x4Voice
Board Member BlueRibbon Coalition
CA4WDC Resources Consultant
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