From looking at the stock prices over the past five years, you would think that Strum, Ruger was a maker of revolutionary computer software, super smart phones that can run thousands of apps at the same time, or a solar powered car that holds a charge for more than five minutes. Nevertheless, they don't-- they make some of the bestselling firearms in modern history.
Company snapshot in 2009
In January 2009, Ruger (NYSE symbol RGR) had a stock price that was hovering about $5 per common public share. While this doesn't sound like a lot, the company was healthy with steady production of its Red Label shotguns, Mk77 bolt-action rifles, 10/22 rimfires, MkIII pistols, Mini 14/30 semi-autos, and a growing line of new compact pistols such as the LCP.
Company snapshot in 2013
While the economy itself overall has made steady and encouraging improvements over the past five years (the S&P 500 Index has gained 70% since 2009), Ruger has soared like a rocket screaming to outer space in comparison. It has consistently climbed ever higher. By December 2012, it was in the $40 range per share. Currently (May 2013) its closer to $60. This is an increase of some 1200% in just over four years.
Supply and demand
With an astronomical increase in trading and a relevant business model producing a series of items that the public wanted, the company is currently working on a huge backlog. For the first time in company history, it had to stop accepting new orders for a time to try to catch up. As Zerohedge reports, the company both produced and shipped more than 500,000 firearms in the last quarter while its backlog of guns already ordered touched the 2-million mark.
That's right, Ruger has 2-million firearms on order right now that they are trying to churn out. They are currently looking to invest some $30-million on new production capacity to help stop the bleeding.
With so much extra cash on hand, it is even rumored the company was looking to pick up the Freedom Group, which has been very publicly up for grabs for the past several months.
While it's unlikely to go through, it would make Ruger possibly the largest producer of AR-15 style platforms in the country as well as the Big Daddy in control of the pocket book to rivals Remington, Marlin, and H&R.
You can bet old Bill Ruger is smiling at how things are unfolding.