Smith & Wesson shares fall as gun 'frenzy' wanes

[Robb]

Source: CNN

Smith & Wesson shares fell on Friday, a day after the gunmaker reported strong sales and earnings but a disappointing outlook, as the nationwide fever for firearms begins to wane.

Smith & Wesson Holding Corp. (SWHC) dropped 8%, even though the company reported on Thursday that its latest quarterly sales jumped 25% to $171 million. The Springfield, Mass., gunmaker also reported that earnings for the quarter surged to 41 cents per share, compared to 27 cents a year earlier.



Investors were disappointed by the company's "cloudier" than expected forecast for the current quarter, which said sales would be $135 million to $140 million and earnings 20 cents to 22 cents per share.

"Longer term, we think things should be just fine for the industry overall, but certainly the sales frenzy seen earlier this year is unsustainable," said Dionisio.

Read more: http://money.cnn.com/2013/09/06/investing/smith-wesson-gun/

[Turbineguy]

1. Wayne Lapierre

must be getting some unpleasant phone calls.

[lastlib]

9. but he's probably making a fortune short-selling......

[7962]

24. All short sellers should be beaten, IMO

If someone wants to bet on a price dropping, then buy put options. There shouldnt be "borrowing" of shares. Too much manipulation on top of whats already happening.

[yesphan]

2. Time to stir the pot

with some serious fear.

[mockmonkey]

10. Yep

Time for the Robocalls.

[tridim]

3. Damn you Obama!!!!11

[AnotherMcIntosh]

4. Damn. Why aren't the gun-controller stockholders doing their job?

[progressoid]

5. They'll bounce back. Christmas is just around the corner!

[Blue_Tires]

13. I'd like to think that even the most ignorant folks are getting wise to the

"get your guns now before the ban comes!" ruse...

Here in Virginia the local paper would pull that stunt every six months like clockwork...

[NickB79]

16. They'll run out of money before they run out of stupid

And that's likely exactly what's going on: the prices gun stores are charging for guns and ammo is highway robbery.

I just stopped at a big-box sporting goods store yesterday looking for some ammo to go small-game hunting with. My jaw dropped at the jacked-up prices. A trigger-happy shooter with an AR-15 could blow $500+ in ONE DAY at the shooting range!

Screw that shit.

[Eleanors38]

26. Yeah, when I went to buy ammo, the caliber was available. But

the most common grain bullet was out, and only a lighter bullet was available. Didn't know they made 110 gr .357s

[Paladin]

27. Hey, we all have our crosses to bear. (nt)

[onehandle]

6. In related news, sales of white sheets are down. nt

[Hoyt]

7. The gun lovers can only buy so many more guns to add to their weapon cache.

Last edited Fri Sep 6, 2013, 07:42 PM - Edit history (1)

Maybe, so public gun toters are facing some backlash too, like those who blow smoke in public . . . . . . .

[Tommy_Carcetti]

8. I'm sure they are eagerly awaiting the next mass shooting to give them another lift.

Only half there.

[PrestonLocke]

11. Who stands to gain the most from the gun control hysteria caused by mass shootings?

[Tommy_Carcetti]

18. Based on profits, that would be gun manufacturers. nt

[PrestonLocke]

20. What could be more murican that profits?!

[riqster]

12. Serves the idiots right for buying the hype.

[NickB79]

14. Good. Maybe I can afford to go to the target range again

Fucking ammo hoarding idiots have left the shelves bare everywhere.

[Earth_First]

19. Nope. It's "government causing the ammunition shortages!"

I heard it myself from a bearded, wide-eyed yokel at Gander Mountain just last week!

[NickB79]

21. Yeah, I've heard that too

Like I said, they'll run out of money before they run out of stupid....

[HolyMoley]

15. Time for Dianne Feinstein, Mike Bloomburg, Joe Biden, etc

to propose more gun control laws and restrictions: assault weapons ban, magazine bans, etc.

Their stock will value will go through the roof again.

[AlinPA]

17. Things will brighten for them after they get the mass shooting they will be hoping for.

[aikoaiko]

22. Yup. I just got emails on new Colt AR 6920s for $1099

6 months ago they were over $2000 if they could be found.

[jmowreader]

23. You mean Idaho teabaggers will stop asking Rep. Labrador where the ammo is?

I've posted this before but it's a good time to do it again: one of my newspapers has recently been getting letters stating that the writer has called Raul Labrador, our esteemed and completely useless congressman, to ask why there's no ammo at Ace Hardware. Last week's letter was the best: the OWNER of Ace Hardware wrote in to say he wrote to Rep. Worthless to ask why he wasn't able to get any ammo to sell. Uhh...could it be because hardware stores in towns with 1,750 population are at the bottom of an ammo maker's priority list?

I don't feel too sad for the gun makers, tho...in about four months the Sixth Annual Obama's Gonna Take Away Your Guns Any Second Now Sale will drop, and it won't even take a national calamity this time; if there's even the slightest inkling the GOP will lose the House and maintain their minority in the Senate (or worse for them, lose enough seats that we go over 62 - if we were Republicans 60 would be good enough, but since we're Democrats and party unity has never been our strong suit, we need a couple extra votes just in case) there'll be a picture of Nancy Pelosi on the wall in every gun shop in America and the firearms will just fly out the door.

[mountain grammy]

25. Your second paragraph is dead on priceless.

Can I steal it?

[jmowreader]

28. It ain't stealin' if I say you can

And you can.

[jmowreader]

29. This chart shows how bad graphs lie

That huge plunge to the depths of despair masks two things: the stock fell a dollar, and it never was that high to begin with. One would think that such a famous and long established manufacturer would be worth hundreds of dollars, not be on the verge of slipping onto the Pink Sheets.