Thursday, November 1, 2012


Apple and Amazon have been kicked about a little so I added five shares of both as a market buy.

Now, is it time to cash in on Ruger? I have not held the shares for a year, my brother in law tipped me that people were buying guns like crazy in the fear that President Obama would get re-elected and ban assault rifles. It sounded like a conspiracy theory at first, but I went to a gun show and these people truly believe what they are saying. They I looked at the company and it is very well run, they have a low debt load, they are living the manufacturing dream. In fact their stock got hit because the demand is so high, they had to quit accepting orders. When does that happen?

I really hate paying capital gains. I feel I pay too much tax already, why would I consider a self inflicted wound without a really good reason?

My thesis at this point is that if the President wins I am going to take a massive hit in the stock price. However, I need to keep in mind that Wall Street has every little jot and tittle factored into the price and RGR is 94% Institutional Investor owned. Yes, the President has some authority, but there is another party in Congress, called the Republican party and they have typically support the right to arm bears(SIC).

So, it is unlikely gun control, even what many people might consider a sensible ban on assault weapons will be a slam dunk. Good company, there is demand for the product, it is unlikely that government legislation will overly interfere with them. There is risk in the decision, but I am going to hold the equity.

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