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Message: A case for Ruger? and a riddle.

A case for Ruger? and a riddle.

posted on Jan 23, 2010 06:06PM

Have looked at Sturm Ruger, RGR in the US. Anyone like to look at it and tell me why it isn't poised to bound?

Zero debt, cash inthe bank (like that a lot). Fairly small float of 19M. Current div yield of 3.5% (only a short div history).

Positive earnings in each of th elast 4 quarters, and last 5 yrs. Corporoate presentation on their site says that inventories dropping and backlogged orders increasing.

Current EPS of $1.41 gives it a PE of 7.75. Current share price is about 11 bucks. It was there 3 yrs ago with earnings of a nickle and the summer of 07 with earnings of .37. Firearm sales are brisk inthe US I hear, they have some great products. I have several of their rifles in my rack. Only thing I see that isn't great is revenue has been a bit flat for some time, with increased earnings coming from cost cutting.

Anyone like to give me their take?

Oh, a riddle for you guys. You leave a cabin and walk 4 miles due south, walk 2 miles due west, then 2 miles due north. You end up back at your cabin, and there is a bear there. What color is the bear?

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