Arizona Ammunition Maker Facing $80-Million In Back Orders

Discussion in 'The Okie Corral' started by cbetts1, Sep 30, 2020.

  1. Sporaticus

    Sporaticus Aw sheet main

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    The sad thing about guns, ammo, and panic buying is that there will always another reason for a panic. Invest now, and even if things settle down, they'll make millions in 4 years.

    I like to hear people pretend to be smart by analyzing the current shortage. One in particular likes to say it's because unemployment is paying so well, manufacturers cannot get workers. This genius doesn't even consider those pictures of lines out the doors of gun stores, empty counters at gun stores, or that we have a panic and shortage every few years.
     
  2. Aurora

    Aurora

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    I'll admit that I'm exasperated at the state of affairs.

    I suppose it's good that there are so many people who have guns and ammo. It'll make it harder (and riskier) to try and ban the stuff.

    V.
     

  3. Dave Lively

    Dave Lively

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    I have never heard of this company before so they are probably pretty small compared to CCI, Winchester and Remington. As such they are probably planning to keep using their new equipment by increased market share when things calm down. There are a lot of small manufacturers that seemed to be doing well even before things went all 2020 and there is room for one more. Particularly if they make a quality product at a good price.
     
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  4. sombunya

    sombunya Use it up, throw it away

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    Another thing you don’t hear much about is powder manufacturing, a very important component (you think?).

    When I started reloading it ran about $10/lb. Now it’s up to $30. My buddy has an old canister with a price tag that reads something like $1.50.

    If I buy 7.62 brass for 10 cents each, 20 cents for the bullet, about 20 cents per powder charge (43 gr. 748) 3 cents per primer, that comes to 53 cents for the components only. Then there’s cleaning the cases and all the assembly required. What’s a person’s time worth?

    I guess a dollar a round for Lake City overrun isn’t too bad.
     
  5. Nemesis.

    Nemesis.

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    You'd be wrong.

    I got a business degree with an accounting major in 2012. A class project was to analyze the financials of a major US corporation. I chose Smith and Wesson. (I collect older S&W revolvers.)

    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. That's good for us. In the long run. And they're loving it.

    Think about it. A couple of years ago the demand slowed down and people were trying to unload the guns they bought in their panic. Gun makers had overstocked inventory. Ditto dealers. People were getting laid off at Ruger, etc.

    No doubt about it. Good business is good for business and they're loving it. And good for them.
     
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  6. knoxville36

    knoxville36

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    There is no and if or buts about it that this is an all-time high if you are in the gun and ammo business. All of the manufacturing companies will have record profits. Not necessarily a bad thing.
     
  7. mac66

    mac66 Huge Member Millennium Member

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    If Trump wins buying will slow down and the surplus in ammo will drive the prices down to where it was a year ago. If Biden wins the panic/demand will continue and prices will stay high.
     
  8. Aurora

    Aurora

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    If there is legislation under a Dem administration, then that would be very bad for business. Once a law is on the books it rarely comes off. We're pretty much stuck with it.

    V.