Responding to a weekly update of gun stock (equities, not furniture) prices in weaponsman.com, I dashed off some anecdotes and analysis, adding to my previous posts on the subject:
About five years ago, while running an outdoor gear business, I walked into a Gander Mountain store outside Minneapolis. The place had the look and feel of retailer going nowhere, fast. Downright depressing. About two years ago, I roamed around a Cabela’s, also outside Minneapolis. The place had the look and feel of a retailer in need of strategic re-organization (no surprise, Cabela’s got acquired).
Retailers going out of business or getting acquired due to negative market trends is not good for gun stocks. Not good for outdoor gear, either–unless sold online, and running on batteries. So, why are gun manufacturers in such a rush to be “outdoor” companies? Personally, I would stick with Sturm-Ruger (RGR). At least they have stuck to their guns, rather than caving-in to the investment bankers and the consultants and “diversifying” into yet another growth-challenged industry. Plus, there’s the dividend, which buys you time to figure out where else to put your money.