Sturm, Ruger & Company (NYSE:RGR)

CAPS Rating: 4 out of 5

The Company is principally engaged in the design, manufacture, and sale of firearms and precision investment castings. The Company's design and manufacturing operations are located in the United States.

Recs

5
Player Avatar JohnCLeven (82.79) Submitted: 8/17/2012 11:38:02 PM : Outperform Start Price: $44.71 RGR Score: +11.63

15x is a damn low P/E for a very hig quality growth stock, with ZERO debt, great Free Cash Flow, epic 5 yr ROI of 23% (98th percentile), a stunning balace sheet, and a leader in an industry that will probably survive as long as the human race does (and boom just before it ceases).

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Member Avatar JohnCLeven (82.79) Submitted: 11/19/2012 2:29:42 PM
Recs: 0

I’m closing my RGR pick after the nice gain. Although I’m usually a long-term investor, this was a short term pick. (which I never would have made in real life) RGR has seen insane growth over the past 4 years due to the “gun craze”, but that level of demand growth is definitely unsustainable. RGR was not a great company, imo, before 2008. RGR’s backlog is dropping. RGR has had great fundamentals over the past 4 yrs, but I certainly cannot predict how long this gun craze will last. If the demand explosion could happen so quick, than it can probably end just as quick. Better safe than sorry.

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