smith & wesson holding corporation (swhc)
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Smith & Wesson Holding Corporation (SWHC). Michael Vargas. Business Summary. Largest US firearms manufacturer and exporter Provides products and services for safety, security, protection, and sports in the US and internationally Products include Firearms Handguns Sporting Rifles - PowerPoint PPT PresentationTRANSCRIPT
Smith & Wesson Holding Corporation (SWHC)
Michael Vargas
Business Summary Largest US firearms manufacturer and
exporter Provides products and services for safety,
security, protection, and sports in the US and internationally
Products include• Firearms• Handguns• Sporting Rifles• Firearm-related products and accessories
Founded in 1852 in Springfield, MO
Market S&W sells its products through
commercial, law enforcement, federal, and military distributors, retailers and dealers in US to:• Gun enthusiasts / Collectors• Hunters / Sportsmen• Law Enforcement / Military / Security
Services• Individuals for personal and home
protection
….Bottom Line It’s a fucking gun company.
Stock Overview
Stock Performance Last 6 months, SWHC has increased
+42.1% SWHC has outperformed the S&P 500
Total Return Index benchmark by 38.7%
SWHC witnessed a 600% rise in Q1 earnings, from 4 cents to 28 cents this yr
Sales rose by 48% to $136m Company forecasts sales at $130-
135m, well above the Street’s $115m est
Stock Overview
Gun Sales Increasing Cabela’s saw a 25% increase in new gun
buyers right after the 2008 election. Nearly 12m background checks for gun
sales through Aug. 31, up 56% from 2008. Federal excise taxes on the sale of new
firearms and ammo rose $453m in 2009, up 45% from the year before.
Ammo manufacturers have backlogs.
Source: WSJ
Gun Sales Increasing
Source: WSJ
Why buy? Diversification
• No aerospace/defense products & services holdings
Superb performance• Sales and earnings
Election hedge• “Gun control is coming” argument
Risk Short-term play Tighter gun control laws Defense spending cuts Supply Low consumer recreational spending
Questions?