QUOTE AND NEWS
CNNMoney.com  Jun 20  Comment 
American Outdoor Brands, the gun maker that owns the iconic Smith & Wesson line of firearms, reported plunging sales and blamed "social activists" for the decline.
Motley Fool  Jun 15  Comment 
Gun sales have been falling for a year and half, and there's no catalyst on the horizon that might cause that trend to reverse.
Channel News Asia  Apr 25  Comment 
Proxy adviser Institutional Shareholder Services on Wednesday recommended investors vote to support a shareholder resolution calling on Sturm Ruger & Co to report on gun safety.
Yahoo  Apr 23  Comment 
It took a few months after I wrote my piece, but Bank of America stock eventually rocketed past its doldrums. On a year-to-date basis, Bank of America stock is up 2%. About two weeks ago, Bank of America Vice Chairman Anne Finucane stated that...
Yahoo  Apr 17  Comment 
BlackRock and Vanguard are the largest holders of American Outdoor Brands and Sturm Ruger.
Motley Fool  Apr 11  Comment 
Gun sales are picking up as scrutiny hits the industry.
Motley Fool  Apr 6  Comment 
One produces guns and bullets. The other wants to make them obsolete. Which stock comes out ahead?
Motley Fool  Apr 1  Comment 
One of the leading gunmakers offers a discounted stock and a chance to buy future growth.




 
TOP CONTRIBUTORS

Sturm, Ruger & Company (NYSE: RGR) is one of the nation's biggest gun makers and produces pistols, revolvers, rifles, and shotguns. RGR primarily sells in the U.S. through its top four distributors. Foreign sales, primarily to law enforcement and government, comprise of less than 5% of RGR's total sales. RGR has benefited from an increased consumer desire for self defense but faces significant risk from increasing steel prices, an essential raw material for the company.

Business Growth

RGR sells its products through federally-licensed, independent wholesale distributors, and its four major customers in 2010 were Jerry’s/Ellett Brothers, Davidson’s, Lipsey’s, and Sports South. The major source of growth from 2009 to 2010 was an increase in retail demand. Sales of handguns, especially those purchased for self defense, showed strong growth.

Trends and Forces

Increased Consumer Desire For Self Defense

One of the main drivers of sales for Sturm, Ruger & Company is the increased consumer desire for self defense. In response, RGR has introduced new firearms related to self defense, including the LVP pistol. Although RGR has ramped up production over the past few years, the company still has a large backlog of orders.

Increasing Steel Price Raise Raw Material Costs

As the companies that buy and process steel are raising steel prices, the raw material costs for RGR have gone up. Despite the fluctuating steel prices, RGR does have enough materials in its inventory to provide enough time to locate and obtain additional materials at the current market cost without interrupting its its manufacturing operations

Competition

Sturm, Ruger & Company competes with companies that manufacture firearms for the consumer and government markets.

  • Smith & Wesson Holding (SWHC) Smith & Wesson is a company that firearms including pistols, revolvers, rifles, handcuffs, and accessories. Its customers include individuals desiring self defense, law enforcement, and military agencies.[1]
  • Stinger Systems Inc (STYS) Stinger Systems manufactures electronic stun devices that provides temporary immobilization of dangerous persons. Its products include electrified riot shields and a projectile stun guns.[2]

References

  1. Hoover's SWHC
  2. Hoover's STYS
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