I came across this disturbing article on-line today. Unlike arch-competitor Ruger, S&W stock has been taking a beating lately. There's some international intrigue involved. Here's the scoop:

Smith & Wesson lost its apocalypse opportunity - Nov. 17, 2010

John

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- Cogito, ergo armatus sum -

What international intrigue? Some sales executive bozo at Smith & Wesson attended a meeting the purpose of which was to bribe an African official to grease a prospective arms contract, with the result that the S&W schlub tried to bribe an FBI agent.

S&W itself is unlikely to get hurt, unless the government can prove conspiracy, or the sales exec rolls, or some such.

The whole Foreign Corrupt Practices Act is a high-minded attempt to impose Marquis de Queensbury rules in a setting where bribery is the expected norm and brass-knuckles the expected level of decorum. Apparently the problem is widespread in the American small arms business, as evidenced by the 240 FBI investigations the story posted by the OP reports as currently on-going.


Bullseye

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Five screws and 3-1/2 inches.

I read the article and couldn't really figure out why S&W is doing poorly stock-wise vis-a-vis Ruger.

Well said...

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SWCA #2306
DAV in honor of POP

I thought that was the only way to do business with third world countries? (Mexico, Central/South America and Africa) Heck, even in civilized societies it goes on the same, just more clandestine.

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Lost it all in a boat accident

This article focuses on handgun sales, but international and government sales hinge on long guns. It hints that falling ammo sales are hurting S&W, but S&W doesn't make ammo. And it doesn't talk about how Ruger focuses on its core business and meets buyer demand with the New Vaquero models, the Hawkeye, and various concealable handguns, while S&W is trying to run Walther, TC, and ignoring (until recently) buyer complaints about the IL.

FCPA investigations may be a problem, but the writer seems unaware of what's really happening in the marketplace.


Okie John

Ruger has had more recalls than a feller can shake a stick at of late, and their stock is still up.

Also, they don't have a bus load of vice presidents either.

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Lost it all in a boat accident

I bought I think 4K worth of stock about 2 or 3 years ago when everyone here thought it could go no lower. Thanks, guys! I havent even looked at it for a long time. Aint sure but I think it was $10 or $12s or so when I bought it!

Say what you will about Ruger. Ruger recalls when a problem crops up, rather than have their CS deny that they are aware of a problem.

I prefer a recall. Perhaps that accounts for Rugers stock price. Regards 18DAI.

Ruger also has historically never carried any long-term debt, zero. The old man insisted on never owing for anything. That is a serious contributor to Rugers performance.

The Highlander

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I hope I copied that right

+1 This is a lesson that should be beaten into most of the population of the so-called developed world.

Wow...I mean seeing is believing. I went to morningstar and see the stock price at $3.84 With a repsectful company and a long track record, is now the time to buy? Below $5 a share it is considered a penny stock and prolly a risky bet. I just wonder how long the price can stay this low.

spricks

The problem is very clear in that articles picture. All SW handguns now have the attached cable lock on them. Very hard to draw and thread the cable through your fingers.

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Still Running Against the Wind

Can anybody say "Internal Lock".

I bought in the neighborhood of 20 S&W Revolvers in the last two years, none has the internal lock. All were bought "Used".

S&W is loosing money on me and a bunch of other folks that I
know over the Internal Lock.

Rule 303