Use access key #2 to skip to page content.

Fooldom Knows, Now the Masses Know: Yahoo Frontpage Headline: Historic U.S. bullet shortage

Recs

8

September 24, 2009 – Comments (6) | RELATED TICKERS: SWHC

MY COMMENT: I have limited bandwidth and time, so I cannot address Downwithinfidels blog post. I liked his portfolio when he was negative in points and said so in my post:

#3) On September 17, 2008 at 7:30 PM, abitare (99.12) wrote:

I should make my point more clear:

LONG GOLD

SHORT FINANCIALS

Is a trade to consider and copying DownWithInfidels Portfolio at this point seems to be a good idea to me.

But it is as good as time as any to short his portfolio now, the more he climbs the more he talks, the larger short position you can take on his portfolio.  I am net cash, my only long position is ammo makers.  You know why already...ammo cannot be printed by computers, works as a medium of exchange, there is no Wallstreet leveraged insolvent banks gaming the system etc... 

The consumer is NOT dead...Americans are buying ammo  

The masses now know...time to ride this crazy train!

Yahoo Front Page Headline tells the Masses, what the Classes of Fooldom Know:

America armed, but guns not necessarily loaded

http://news.yahoo.com/s/ap/20090923/ap_on_re_us/us_ammo_shortage;_ylt=AlGB4XQ2WuXLodUpPfoaAzR0fNdF

By MARY FOSTER, Associated Press Writer Mary Foster, Associated Press Writer – Wed Sep 23, 2:51 pm ET

NEW ORLEANS – Bullet-makers are working around the clock, seven days a week, and still can't keep up with the nation's demand for ammunition.

Shooting ranges, gun dealers and bullet manufacturers say they have never seen such shortages. Bullets, especially for handguns, have been scarce for months because gun enthusiasts are stocking up on ammo, in part because they fear President Barack Obama and the Democratic-controlled Congress will pass antigun legislation — even though nothing specific has been proposed and the president last month signed a law allowing people to carry loaded guns in national parks.  

THE QUOTE:

"If someone wants to shoot on the weekend you have to worry about having the ammunition for them. And I know some people aren't buying to use it at the range, they're taking it home and hoarding it."

With demand, prices have also risen.

"Used to be gold, but now lead is the most expensive metal," said Donald Richards, 37, who was stocking up at the Jefferson store. "And worth every penny."

Reference:

Fool Knows: The Gun Craze is Just Getting Started (Part 2). Guns: A Better Buy Than Stocks

April 16, 2009 – Comments (8) | RELATED TICKERS: SWHC , RGR , OLN

Lets review my 25 March 09 post. CHANGES IN BOLD

I know Fools that followed me into this trade are wondering when to get out of it. SWHC is up over 110% since I posted on it 17 Feb 09.

I took out some of my leveraged, but I am not getting out of this trade based on a price, but more on a time line or specific events I expect to see in the coming months. 

My WAG is the gun craze is just getting started, in 6-12 months it will get nuts, IMHO

Some things I am looking for:

1. You will see people camping outside of sporting good stores waiting for ammo shipments

6 Comments – Post Your Own

#1) On September 24, 2009 at 10:51 AM, catoismymotor (29.49) wrote:

I have a pack of stilletto knife weilding crazed monkies running loose in the house. No need fer a gun. Ain't nobody gonna mess with me and mine!

On a serious note I think you made a pretty good call. Sprinkle some economic chaos over a socialist democrat and let simmer for eight months and a percentage of the population will react like this.

Report this comment
#2) On September 24, 2009 at 11:14 AM, ChannelDunlap (< 20) wrote:

Actually from what I understand the shortage, and the perceived crisis, actually originated with our military stocking up Iraqi forces with ammo.  This is was zapped inventories of a few common handgun & rifle rounds.  The perceived shortage in that caused people to freak out and create a self fullfilling prophecy, thinking the other ammo's would sell out as well.  So now everyone buys as much as they can whenever they can (Walmart will only sell you 6 boxes at a time), and here we are with record shortages.

I'm not saying they would be a pretty wise investment at this point, I'm just saying that I don't think the conservative nutjobs are truly at the heart of the shortage, that's all.  And at some point it will come to an abrupt and [to some] unexpected end.

It has been a real pain trying to find some ammo to go to the range with though.  It's like a two week process of calling everywhere asking what they have, and when you finally catch somebody with something in stock, you need to go RIGHT NOW to get it before somebody else does.

Report this comment
#3) On September 24, 2009 at 11:21 AM, leohaas (31.52) wrote:

Right-wing fear mongering is driving this lunacy!

Obama nor the Congress have plans to pass any anti-gun legislation. The Democrats are now the big tent party. This tent includes some fierce 2nd amendment defenders.

Don't get me wrong; there are plenty of Democrats who would like to see more anti-gun legislation. But this is an issue on which the party is split. Finding a majority on this issue is impossible.

Report this comment
#4) On September 24, 2009 at 6:17 PM, rd80 (98.28) wrote:

Gun shows, stores and mail order shops are starting to get ammo in stock again - even in the more popular pistol and rifle calibers.  Prices are still high, but I don't have to ration practice for pistol league any more.

I don't have any good way to tell if supply coming back is because manufacturers have upped production or if demand is tapering off.  Best guess is some of each.  Gun show crowds are down from what they were earlier this year.

abitare has been 'on target' with this investment call, but it might be time to keep an eye open for the exits.

 

 

 

Report this comment
#5) On September 24, 2009 at 11:28 PM, APJ4RealHoldings (34.53) wrote:

Most of 2009 gone & I still haven't bought my first gun or gone to the range to shoot for the first time ever.  I keep on telling myself, someday.  For now, I took my profits on OLN & am now holding RGR (again).

Abitare, or anyone reading this, please if you get a chance, provide some insight or criticisms on a blog post I just put up.  It would be much appreciated.  I'd like to hear your slant, if any.

Small Banks. Potential for Riches or Rags

 

Report this comment
#6) On September 25, 2009 at 12:35 PM, lquadland10 (< 20) wrote:

Just think about how much more guns and bullits will cost when the dollar tanks. Lets compare prices to 1970 when the dollar was some what stronger. Has anyone done the comparison? As the dollar keeps dropping in value everything will go up here.

Report this comment

Featured Broker Partners


Advertisement