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Tuesday, May 8, 2012

Ruger (RGR) Stock Write-Up: Short/Long-Term Bounce Down Or Up?

There are several possible reasons many of which we went over already in the past week.

Here are other reasons we did not review (not saying these are true, but traders and investors who make snap judgments and perceive a lot of this as somewhat true).

1. Investors are not just taking short term profits, but see a chance Obama will do poorly and Romney may win.  Even though Romney is not pro-NRA he is not seen as making anti-gun regulations.

2. Seasonality will cause results from RGR to not be good as expected in the summer.  Maybe investors are thinking the numbers are just too good to be beaten.  Not necessarily saying they are right, but fear is powerful when you have made a lot and need reasons to sell and buy back later when others have given in.

3. The factory is at full capacity and they may not be doing enough to take advantage of these new orders, possibly giving SWHC too much chance to take market share.
You do not hear of Apple losing market share due to factories being shut down (maybe a few decades ago).

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What are your short or long term targets and why?

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