Don’t get your hopes up because I’m not going to give you yet another excuse to tell the wife why you are buying more guns. Although, it might not be a bad idea these days. I have been eying a new Glock 21 or Kimber Stainless II or FN Five-Seven, but I digress.
It seems that every time President Obama opens his mouth lately the stock market goes into a freefall. Well it seems that he has had a good effect on something he probably didn’t include in the $780 Billion dollar stimulus package. Since its recent low of $6.19 on February 19th Sturm, Ruger and Company (Public, NYSE:RGR) is up about 45% to $9.00. Interestingly, Ruger is not the only company that is benefiting.Smith and Wesson are up nearly 50% since the 19th.

Quote:
http://www.forbes.com/feeds/ap/2009/02/25/ap6095158.html
The election of President Obama and a Democratically controlled Congress has been a boon to U.S. handgun makers, with sales of one pistol manufacturer climbing enough that an analyst Wednesday upgraded its stock to “Strong Buy” from “Accumulate.”
CL King & Assoc. analyst Jim Barrett upgraded shares of Sturm, Ruger & Co. after the Southport, Conn.-based company reported its firearm revenue soared 81 percent in the fourth quarter.’
Here are some nice details from Ruger’s recent 2008 annual report.
Quote:
Chief Executive Officer Michael O. Fifer made the following comments related to the 2008 results:
• Our firearm sales grew from $144 million in 2007 to $174 million in 2008 on the strength of new product shipments and overall robust firearms demand, particularly in the fourth quarter.
• Firearm orders received grew from $156 million in 2007 to $234 million in 2008. The order backlog at December 31, 2008 was $48 million, up from $18 million at December 31, 2007. Nonetheless, shipments in 2009 will be limited to units produced in 2009 as finished goods inventory was depleted during the fourth quarter of 2008.
• Firearms unit production increased 29% in 2008 compared to 2007. We expect production capacity to improve in 2009, although at a more modest pace than in 2008, as we continue to work on the transition from large-scale batch production to lean manufacturing, with an emphasis on setting up manufacturing cells that facilitate single-piece flow production and inventory pull systems.
• At December 31, 2008, our cash, cash equivalents and short-term investments totaled $28.2 million. Our pre-LIFO working capital of $90.6 million, less the LIFO reserve of $44.3 million, resulted in working capital of $46.3 million and a current ratio of 2.6 to 1.
• In 2008, the Company repurchased 1,535,000 shares of its common stock, representing 7.5% of the outstanding shares, in the open market at an average price of $6.57 per share. All of these purchases were made with cash held by the Company and no debt was incurred. Currently, a stock repurchase program of up to $4.7 million remains authorized by the Board of Directors, and the Company intends to file a plan under Rule 10b5-1 on March 9, 2009 covering the period through April 24, 2009. This plan may result in the repurchase of shares of common stock during that period.
• In December 2008, the Company renewed its unsecured $25 million revolving line of credit with a bank. This facility is renewable annually and now terminates on December 13, 2009. On December 31, 2008, the Company had a $1 million outstanding balance on the credit facility.