Firearms stocks are falling

[e rex]

Fox news reports that stock prices (the kind you buy on wall street) are falling due to the virus vaccine news and lack of political violence since the election. Maybe things will return to normal yet.

 

[NIGHTLORD40K]

Just knee jerk profit taking and selloff ahead of anticipated new restrictions.

.......and lots of things the new Fox reports arent worth the time to read. Barring a miracle, nothing will return to "normal " for gun owners.

 

[wiscoaster]

Trying to find a reason for a stock's price change on any given day is what financial news analysts are paid to come up with. They attempt to relate price movement to current events. What they have to say is meaningless. Stock price movements in the short term are illogical. In the long term price will reflect value. Don't pay any attention to the short term. Some of the price changes in the last couple days have been especially bizarre. There's big money coming in from somewhere for reasons we don't know and can't discover. That makes the analyst's commentary especially meaningless. Eventually that money will go elsewhere and the market value of the stock will no longer be distorted by it.

 

[e rex]

Let us think positive and hope.

 

[Fine Figure of a Man]

Trying to find a reason for a stock's price change on any given day is what financial news analysts are paid to come up with.

Frequently for political, sometimes nefarious, reasons.

 

[mdf9183]

I think there was a time when the stock market hinged on financial news and happenings but in today's world there is no rhyme nor reason to it. The market just goes up and down for no reason regardless what is happening in the world.

 

[reddog81]

Stock prices have been especially volatile this year. Ruger is a profitable company and selling everything they can make. Any attempts at gun legislation will only keep demand up. Even if they pass some sort of ban on normal capacity magazine ban or "assault rifle" bans(highly unlikely if R's remain in control of Senate) demand will stay up for everything else.

If everything returns to normal and no new gun legislation is proposed I could see demand dropping off, however there are plenty of new gun owners out there. Many of them will throw that gun into the back of their closet and forget about it, but some will become enthusiasts and repeat customers.

 

[crestoncowboy]

I'm still shocked at the gun market anyway. Always have been. They almost never wear out, and we are still using the same old things for the most part. John Browning has his patents in almost everything made and he died nearly 100 years ago.. No other industry is so successful with next to zero innovation on items that last 100 years with any care.

 

[Bfh_auto]

I'm still shocked at the gun market anyway. Always have been. They almost never wear out, and we are still using the same old things for the most part. John Browning has his patents in almost everything made and he died nearly 100 years ago.. No other industry is so successful with next to zero innovation on items that last 100 years with any care.

It's one of the things people but multiples of little reason.
I can't get in a soap box because I could thin my assortment down by 90% and still get by fine.

 

[crestoncowboy]

It's one of the things people but multiples of little reason.
I can't get in a soap box because I could thin my assortment down by 90% and still get by fine.

Absolutely. I'm guilty. I have multiple of the same on a few cases. There was a thread on it recently. I have multiples of 100 year old guns too Lol.

But really if you look at most industries they are constantly evolving. Making their old stuff obsolete. By the time a new item comes out they are planning the successor. How many tube TV are left. Even around 20 years ago that was the main tech. They didn't break but people still bought the lcd. Then LED.

I drive a 66 and a 79 car. I assure you I'm in the minority. Yet people still carry and Buy copies of 100 year old guns. Hell even the Glock is 40. Sure they innovated by adding finger grooves.....but then they re-innovated by taking them back. Lol

I'm just shocked every year at the sales. 5 million new owners but 20 million sales. Lol. We are a spoiled bunch.

 

[alfsauve]

Well the DJIA is up 0.45% as I type this. Up several points yesterday. True the NASDAQ and S&P are down today. But generally the vaccine news and reduced violence is being viewed as a good thing. My personal portfolio was up 3.5% yesterday and at the moment up 0.65%.

Not sure I'd rely only on FOX news for business reports.

 

[theotherwaldo]

The firearm is limited by its weakest component: the one between the trigger and the ground.
The average human can only handle so much recoil, can only produce so much hand-to-eye precision, and react only so well to so many moving targets.
We are down to small, incremental improvements to the various types of firearms.
Perhaps it is time to improve the firearm's weakest link... .

 

[wiscoaster]

Perhaps it is time to improve the firearm's weakest link... .

Agreed. Gun knowledge is better than gun control.

 

[Balrog]

Gun company stocks are falling because of expected anti-gun legislation that will come under Biden. His website says he wants a new "assault weapon" ban, meaning you could not buy new ones, and wants existing ones to be registered under the NFA like machine guns.

 

[crestoncowboy]

We are down to small, incremental improvements to the various types of firearms.

Are we. Ive bought all kinds of new ones and see no improvements in most areas. Id take a 50 year old Smith over a new smith/ colt/ Ruger/ charter taurus etc any day. Obviously we have bigger stronger guns in those calibers that call for it. I have both x- frames and a few big game rugers.

I've also got the new HK and sig duty guns. I wouldn't trade a Glock for one. I also wouldn't pay one cent more for a gen 5 over a gen 3 in the Glock

The most sold defense rifle is a copy of a 70 year old rifle with the handle shaved off. The most sold bolt rifles are still the same old guns. The most sold shotguns are the same pump actions. And the older they are the more highly they are regarded. The newer the production year the less they are worth. Unlike most things. Most sold rimfire is still the same old 10/22

Semi auto shotguns may be improved. Ill give a bit on that one. But I can't think of any other industry that is so successful at selling the same old unchanged items (or a copy of someone's older items) that aren't really perishable goods.

 

[CDW4ME]

Firearms stocks falling can't be related to the election and who is expected to take office, no way.
That would infer that politics impacts guns, can't be, Noooooooo.

 

[jmr40]

Politics aside, there can only be so much growth in the firearms market. Guns and ammo have been selling at unprecedented rates for 12 years now. I'd say the market is more than saturated. Same with ammo. Most of the ammo purchased in the last few years has been stockpiled instead of being shot. At some point gun makers have to reach the point where there are very few people want another gun, and many who do own them already have a lifetime supply of ammo.

Going forward the only way for gun companies to expand their market is to produce something different. And that could be good news for a lot of people who have been asking for gun makers to bring back classic guns in cartridges that have all but disappeared. No gun maker is going to bring back a classic Savage 99 chambered in 300 Savage when they can't keep up with production of AR's and 223 ammo. But I look to see that sort of thing in the future.

 

[crestoncowboy]

No gun maker is going to bring back a classic Savage 99

I could see Henry doing it. Make it look like one but not quite. We have two and really don't see the appeal. Took my first deer with the 300. The 303 was a mistake at a flea market.... coulda swore it said 300 savage. Lol

We have seen it with the Remington pistol. As well as the a-5 look alike of the auto-5. The 97 winchester. The 87 lever action china shotguns.... And the almost released but not quite for the past 10 years clone of the bren 10.

 

[Steve S.]

All stocks rise and fall for a reason; all of those reasons are happening all at the same time causing price moves. Gun stocks fell because the money wanted to go elsewhere.

 

[giggitygiggity]

I bought shares of Ruger and S&W right before the election. I anticipate them going up, especially as the Democrat-run Congress and Presidency take effect in January. If the Republicans lose the Senate in the January runoff elections, I look for gun stocks to increase as people attempt to get guns before legislation is pushed through.

I am not saying that legislation will get pushed through, but the very potential of it has the ability to spark panic buying. And just because one party controls a branch or branches of government does not guarantee or prevent that legislation will become law. My mindset in buying the gun stocks was that hopefully things calm down, our 2A is not further infringed upon, and I will lose some money. We shall see.

 

[Buzznrose]

Ruger has been a pretty good performer over the last year, but it got ahead of itself:

 

[wiscoaster]

RGR has a *** Morningstar rating.

 

[crestoncowboy]

Ruger has been a pretty good performer over the last year, but it got ahead of itself:

In high school we had to pick a stock and follow it in the early 90s. Had to go back to 80 and see how would have done if we bought that stock. I picked ruger. (Would likely get expelled nowdays)

And even them, what have they done? Their sellers in 1990 were the Redhawk. The Blackhawk. Gp The 10-22 and the mk 2. And a mediocre pistol that failed to get any market share. Most of which are still out there working great.

Now 30 years later their main sellers are the Redhawk. Blackhawk. Gp. The 10-22 and the mk3/22-45/mk4. And a mediocre pistol that has failed to generate any significant market share.

Yet their booming. Very odd industry indeed.

 

[wiscoaster]

In high school we had to pick a stock and follow it in the early 90s. .... I picked ruger.

If a person had bought 100 shares of RGR in 1990 for about $4,800 AND DID NOTHING ELSE they would now own 300 shares worth about $19,100 and in the meantime collected almost $8,000 in dividends, making their investment worth around $27,100. Anybody can save up enough to buy 100 shares of stock of a good company. And if they don't want to start with stocks, they can buy $25 or $50 worth of shares in a mutual fund. If they start early enough, and if they're patient, they can become, at least, modestly rich. So much for the person above that thinks stocks are only for rich people. Anybody can buy stocks. Anybody can buy mutual funds. Anybody can become modestly wealthy. They don't have to be rich to start. But they can end up there. Anybody. They just have to start early, be consistent, and be patient. Such is the magic of capitalism.

 

[theotherwaldo]

If I had taken the couple of pounds of gold that I had sluiced up in the 1980s, sold it and invested it in Ruger I'd have something worth well over $100,000.00.
Of course, if I'd just kept the gold I'd have something worth a good bit more.
Too bad I had to sell most of the gold to help support my whacked-out family... .