The Accurate Reloading Forums THE ACCURATE RELOADING.COM FORUMS Guns, Politics, Gunsmithing & Reloading Gunsmithing Bill Ruger's family sells ownership stakeGo | New | Find | Notify | Tools | Reply | |
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I found the following news release on the Ruger website. It looks like this transaction will sever all connections (except the name) between the Ruger family and the Ruger company. Bear in mind, 10 years ago Ruger shares (RGR) sold for $20/share.
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If I offered you 12 million to walk away from your dad's business, would you? | |||
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No, I'd honor my father by keeping it in the family. | |||
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I hope this doesnt bring bad things for this great company. Hate to see them go the way of Winchester. | |||
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That depends upon alot of things. In perfect hind sight, the family should have done the same thing 10 years ago when they could have gotten 3.4 times more, not adjusted for inflation. Perhaps they think prospects going forward are not any better? Afterall, the sporting firearms business is a declining business. NRA Life Member, Band of Bubbas Charter Member, PGCA, DRSS. Shoot & hunt with vintage classics. | |||
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Forest, The did the article state whether or not that was all the shares owned by the family? There are still 22 million shares outstanding. Additionally, when a company buys back shares it is generally a good sign meaning the management things that it's stock is undervalued. Additionally, there comes a time when the "fiunder and the founders heirs" need to step aside. The gun industry is not what it once was. I was fortuhate enought to spend 5 nights in Argentina in 2005 with Ted Rowe who is Vice President of Industry and Government Relations. He seemed very positive on the future of the company so this buy back doesn't surprise me. Mike Never under estimate the internet community's ability to reply to your post with their personal rant about their tangentially related, single occurrence issue.  What I have learned on AR, since 2001: 1. The proper answer to: Where is the best place in town to get a steak dinner? is…You should go to Mel's Diner and get the fried chicken. 2. Big game animals can tell the difference between .015 of an inch in diameter, 15 grains of bullet weight, and 150 fps. 3. There is a difference in the performance of two identical projectiles launched at the same velocity if they came from different cartridges. 4. While a double rifle is the perfect DGR, every 375HH bolt gun needs to be modified to carry at least 5 down. 5. While a floor plate and detachable box magazine both use a mechanical latch, only the floor plate latch is reliable. Disregard the fact that every modern military rifle uses a detachable box magazine. 6. The Remington 700 is unreliable regardless of the fact it is the basis of the USMC M40 sniper rifle for 40+ years with no changes to the receiver or extractor and is the choice of more military and law enforcement sniper units than any other rifle. 7. PF actions are not suitable for a DGR and it is irrelevant that the M1, M14, M16, & AK47 which were designed for hunting men that can shoot back are all PF actions. 8. 95 deg F in Africa is different than 95 deg F in TX or CA and that is why you must worry about ammunition temperature in Africa (even though most safaris take place in winter) but not in TX or in CA. 9. The size of a ding in a gun's finish doesn't matter, what matters is whether it’s a safe ding or not. 10. 1 in a row is a trend, 2 in a row is statistically significant, and 3 in a row is an irrefutable fact. 11. Never buy a WSM or RCM cartridge for a safari rifle or your go to rifle in the USA because if they lose your ammo you can't find replacement ammo but don't worry 280 Rem, 338-06, 35 Whelen, and all Weatherby cartridges abound in Africa and back country stores. 12. A well hit animal can run 75 yds. in the open and suddenly drop with no initial blood trail, but the one I shot from 200 yds. away that ran 10 yds. and disappeared into a thicket and was not found was lost because the bullet penciled thru. I am 100% certain of this even though I have no physical evidence. 13. A 300 Win Mag is a 500 yard elk cartridge but a 308 Win is not a 300 yard elk cartridge even though the same bullet is travelling at the same velocity at those respective distances. | |||
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Conflict in this company was one of Bill's trademarks. He managed well and built a large business and one must commend him for his tenacity. Personally I see the demise of the following generation's governance as a positive as it gives the company a chance to do some badly needed things. Restore the customer confidence in quality for one! /////////////////////////////////////////////////////////////////////////// "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery." Winston Churchill | |||
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Mike, yes the press release doesn't say how much the sale represented of the Ruger family's total holdings. ForrestB stated that he thinks it represents all. And yes, company management may see opportunities the family doesn't, perhaps military and police-related. Or maybe they just think the stock price is artificially undervalued. It has already recovered some since the sale. Typically sales like this are explained as "estate planning" regardless of other reasons. NRA Life Member, Band of Bubbas Charter Member, PGCA, DRSS. Shoot & hunt with vintage classics. | |||
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Forrest, Forrest, it's all, as post sale they are listed as ZERO shares. IIRC, jr was horrible for the company and was asked to step down to avoid a share holders meeting. The family hasn't been active in daily management for awhile, right? Looks like a strong move to have the company control it's fate, rather than jr and his (poor?) management. Bet of luck to them... the 2006 finanacial documents are going to look funny, with all that stock going into treasury shares, unless they are planning a sellback to raise funds??? If I was offered $12MM to walk away from a company I had already proven I couldn't manage? yeah... jeffe opinions vary band of bubbas and STC hunting Club Information on Ammoguide about the416AR, 458AR, 470AR, 500AR What is an AR round? Case Drawings 416-458-470AR and 500AR. 476AR, http://www.weaponsmith.com | |||
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Well, if the Ruger family has divested itself of its shares, I just might buy a Ruger in the future. George  | |||
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Maybe they think the 375R will be the next big thing.  NRA Life Member, Band of Bubbas Charter Member, PGCA, DRSS. Shoot & hunt with vintage classics. | |||
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22,638,720 shares outstanding valued at $7.32/share is a $165,715,430.40 company. In 1996, the whole market was on a huge upward ride that ended in 2001 many, many stocks corrected a lot worse than Ruger. If you look at their long term peformance you can see that it actually looks like a very stable company.  Frank "I don't know what there is about buffalo that frightens me so.....He looks like he hates you personally. He looks like you owe him money." - Robert Ruark, Horn of the Hunter, 1953 NRA Life, SAF Life, CRPA Life, DRSS lite | |||
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It appears that they screwed up. They sold for $5.90, but the stock closed @ $7.32 the previous day. I would have thought that they could have gotten at least $7. | |||
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I would imagine it has to do with the lack of liquidity in the stock itself. If you look at the average volume traded daily over the last 3 months it is 139,000 shares per day. I would imagine that being a small thinly traded stock it would be difficult to find somebody to be on the other side of a 5 million share transaction. Therefore, the company offering to buy them ALL back at 5.90/share may have been a compelling offer versus the alternative. No telling what kind of chaos would ensue if they tried to dump all of their shares on the open market at once...you would see a definite decline in the stock price. Having the stock available as tresury stock allows the company to raise additional money in the future without having to float additional shares as well. Given that they have no debt currently I would say it wasn't a bad deal. | |||
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This stock has underperformed the S&P500 since 1998, no surprise since earnings have been declining. Perhaps new management can turn things around? CL King put a "strong buy" on it this month. NRA Life Member, Band of Bubbas Charter Member, PGCA, DRSS. Shoot & hunt with vintage classics. | |||
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Let me predict MY wife's responses to my purchases: 1) $200 barrel... no response 2) $1,000 rifle...."What's this?" 3) $100k hunting cabin...."I'm not signing anything" 4) $20M for Ruger....."HA! Dream on!" | |||
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YES! HERE IT IS! | |||
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the family sold shares at $5.90 in 2006...of which ,for all times prior, the stock had never gone over $20, and seems to have averaged around 10... it closed at 80 yesterday, and can't keep up with order volume sometimes, yeah, professional management counts
Current market cap - 1.55 BiLLION -- WOW, do i wish i had the foresight to know it would improve .. oh, wait.... opinions vary band of bubbas and STC hunting Club Information on Ammoguide about the416AR, 458AR, 470AR, 500AR What is an AR round? Case Drawings 416-458-470AR and 500AR. 476AR, http://www.weaponsmith.com | |||
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ruger was founded by one mans genius that is something which is often overlooked and irreplaceable and with todays government it is squashed. | |||
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Maybe they'll quit making the bolt notch in their stocks large enough to park a volkswagon. I know, way off topic, it just bothers me that much.  ______________________ Always remember you're unique, just like everyone else. | |||
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Safing this thread for almost eigtht years to prove a point. Well played. | |||
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+1 I count count the number of times I had a reason to buy a M77 but held off due to that trough in the side of the stock. Even the beautiful express style rifles had that bolt handle trough. Jason "You're not hard-core, unless you live hard-core." _______________________ Hunting in Africa is an adventure. The number of variables involved preclude the possibility of a perfect hunt. Some problems will arise. How you decide to handle them will determine how much you enjoy your hunt. Just tell yourself, "it's all part of the adventure." Remember, if Robert Ruark had gotten upset every time problems with Harry Selby's flat bed truck delayed the safari, Horn of the Hunter would have read like an indictment of Selby. But Ruark rolled with the punches, poured some gin, and enjoyed the adventure. -Jason Brown | |||
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wow, 6 1/2 years to dredge up an old post!. if i was smart enough to know 5-6 years ago what individual stocks would be worth today, i could have bought a rhino hunt at DSC. HIND SIGHT IS ALWAYS 20:20 Vote Trump- Putin’s best friend… | |||
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Winchester too... | |||
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The Accurate Reloading Forums THE ACCURATE RELOADING.COM FORUMS Guns, Politics, Gunsmithing & Reloading Gunsmithing Bill Ruger's family sells ownership stake
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