Smith & Wesson Stepping Up Production as Sales Soar 140 Percent

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Smith & Wesson Stepping Up Production as Sales Soar 140 Percent
https://freebeacon.com/latest-news/smith-wesson-stepping-up-production-as-sales-soar-140-percent/

Gun maker pledges 'max capacity' production that could lead to more jobs, shifts for workers

Smith & Wesson, one of only two publicly traded gun manufacturers in America, reported a 140 percent year-over-year jump in gun sales between the beginning of May and the end of July. The company moved 584,000 guns in that period, an unprecedented demand that caused inventories to fall.

 

[nemesis]

Interesting how tumultuous times have helped Smith and Wesson. This isn't the first time they've done well.

I got a business degree with an accounting major from Northeastern State in 2012. A class project was to analyse the financials of a major US corporation. I chose Smith and Wesson.

I analyzed their balance sheets from 2006 through 2010. A good barometer of a corporation's liquidity is Cash and Cash Equivalents. In 2006, S&W C&CE totaled $731,000. That’s not good for a corporation the size of S&W.

Heading into the election in 2007, (the panic was already starting) their C&CE jumped to $4,065,000. In 2008 it increased to $4,359,000.

Get this, in 2009, C&CE skyrocketed to $39,822,000. That's a monster increase. That figure remained roughly the same for 2010.

Smith and Wesson executives actually admitted that the improvement in their financial position was 100% attributable to Obama.
(S&W 10K report of 2011, page 20, item 1A filed on 6/30/2011).

[Begin quote]
“Political and other factors also can affect our performance. For example, we experienced strong consumer demand for our handguns and modern sporting rifle products beginning in our third fiscal quarter ended January 31, 2009, following a new administration taking office in Washington, D.C., speculation surrounding increased gun control…….” [End quote]

I know the current lack of availability of guns and ammo is irritating, but a benefit is that the current market turmoil is an absolute boom for gun and ammo manufacturers and dealers.

 

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Why 15+ magazines for 9mms are so popular. (streamable.com)


https://streamable.com/6sihke

 

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Sunday Gunday Money edition: Smith & Wesson share price has TRIPLED since George Floyd riots started

 

[dennishoddy]

I know the current lack of availability of guns and ammo is irritating, but a benefit is that the current market turmoil is an absolute boom for gun and ammo manufacturers and dealers.

A side benefit of this massive price increase is that our own Wildlife Department and those in other states are getting a windfall of money from the Pittman Robertson tax on sporting goods that is collected and distributed back to the state agencies.
The Oklahoma Department acquired a lot of money that was put back into buying land for WMA's and other projects during the obama years when everything was high like today.
I hate the high prices as well as the next person but there is a little silver lining to it.

 

[Snattlerake]

I haven't bought a Smith since my Model 65 new out of the box only fired on the three test chambers. Their QC was crap in the 80's. I was going to carry it for duty. Thank God I tested it first. Sent it back and got it back a month later firing on all cylinders so-to-speak.

 

[JD8]

Anyone that wants to invest in SWBI should do some homework, the short float is pretty high. Its not been a great performing stock over the years, but if you're nimble.....there's some Vegas money out there.

 

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Nine swing states have seen record-setting surge in gun sales in 2020… (freebeacon.com)

 

[ronny]

This, too, shall pass.

 

[nemesis]

I hate the high prices as well as the next person but there is a little silver lining to it.

More than one silver lining. The demand for firearms, accessories and ammunition are giving all such manufacturers financial stability which means they can stay around for a little longer. That's good for us, because sooner or later, demand will be satisfied, people will stop panic buying, and sales will achieve equilibrium. In the current context, that means that the market has reached a balance of competing influences. Supply of product matches demand for that product.

Then, sales slump. That means lean times for gun makers but, windfall profits in the boom years will tide them over. Etc.