Although RGR’s revenue growth may have grown nicely over the last two years, its stock price maxed-out on July 27, 2007. Obama triggered a sales surge immediately prior to his election in November 2008. As has been widely reported, rifles–both traditional and “assault” accounted for most of the growth area Ruger rode the wave. According to Ruger’s 2009 10-k SEC filing, rifles racked up some $102.2 million, $69.4 million, and $64.9 million worth of sales in 2009, 2008 and 2007 respectively. And no wonder. Ruger makes some lovely “tactical” weapons: the M77 Hawkeye and the Mini-14 spring to mind.
I’m not saying that my previous feel for the auto industry gestalt (at The Truth About Cars) led to some excellent investments like, say, shorting GM stock. But if I had assembled a small coterie of automotive-minded investors, I reckon we would have done extremely well. Perhaps even well enough for me to tell my overlords to put it where the sun didn’t shine, and start up a new website. That’s the theory. In practice, I’m hoping that The Truth About Guns will one day earn that same level of interest from the finance folks. Rest assured, TTAG will highlight the biz side of the biz—despite the arms industry’s reticence to give [supposedly] damning data to their enemies. So . . . Alexis Evidente of gurufocus.com reckons Ruger stock is not for you. True?