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$5.67 -0.03 (-0.53%)
8/29/2008 4:00 PM

Smith & Wesson Holding Corp (SWHC)

CAPS Rating:
****

The Company manufactures pistols, revolvers, tactical rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a variety of customers, in the United States and throughout the world.

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Avatar TMFSarahGen (99.91) Submitted: 4/02/08 5:37 PM : Outperform Start Price: $4.84 SWHC Score: 5.66

Hmm, I think SWHC has every reason to go up from here:

1) Their earnings were killed last year because they decided for the first time to go seriously after the consumer/hunter. Bam! They hit the most terrible Fall/Christmas in years.

2) They reported on their last earnings that their distributors had reported a pickup in consumer sales.

3) That big Supreme Court case that was argued March 17th, will be decided by sometime in June/July, at which time they will reaffirm that Americans do have the right to bear arms.

4) All the gun fiends are planning to run out with their $600 economic stimulus package check from the government and buy a gun.

Besides, where's the downside? SWHC has bottomed, and it's way safer than my other favorite gun stock, RGR, because a giant percentage of their sales are to military and police - sales that will not go away and do not depend on the consumer.

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Avatar synergize (98.85) Submitted: 5/01/08 11:21 AM

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A number of near-term challenges for the company as it addresses a bloated inventory channel and faces possible continued sales pressure given the declining economy. The company's entrance into the hunting and tactical rifle markets, as well as potential for high-value military contracts, improve its long-term prospects.



Related reports and links:


Smith & Wesson gets contract from Canadian police force

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Avatar TMFSarahGen (99.91) Submitted: 5/01/08 11:41 AM

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Thanks for the info and link. RGR mentioned at their annual meeting that certain things were doing very poorly right now - like black powder rifles - and SWHC just bought Thompson about a year ago. Thompson is almost all black powder, and their manufacturing is almost all shut down for now. I just don't know what expectations are - maybe that's all priced in?

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