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Vista Outdoor and the Primer Market

skeeljc

Gold $$ Contributor
Looks like Vista Outdoors now controls all the primer manufacturing in the United States. They already own Federal and CCI and now they have the confirmed bid for Remington Ammunition.

Having one company in control of all the ammunition production cannot be a good thing.

FORUM BOSS: Winchester makes Primers, and it is owned by OLIN Corp., not Vista Outdoor. There are also foreign primer makers but there have been some restrictions on importation.
 
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Vista Outdoors (VSTO) was a $50 stock until Trump was elected. Then it gradually fell to $7.50. Now it is back up to $20. It has been at $20 since August and does not seem to be going anywhere.
It’s trading at less than 8 times forward estimated earnings which I believe may be moderately underestimated. The market is over 20 times. Given what I read and glean from this forum the firearms related side of their business has more earnings upside over the next few years (more if the Georgia senate races go the wrong way). Several analysts have price targets that yield a 50% stock price upside. Remington is a real unknown earnings generator for them. I think they realize they have substantial earnings accretion staring them in the face they just need to get production ramped up ASAP!!!!
 
My vsto is doing fine but it’s rocky like most since the election. I have no doubt I will do well with it over the next year.

I’d rather take a bath on it and have ammo though
 
Well pardon the Hell out of me , but I'm a little more concerned about primer availability , than I am my portfolio right now . And having one entity as the major control of primer manufacturing in this nation should be of concern to everyone that is NOT a anti-gun liberal . Think about it . For just three seconds . I'm sure you can connect the dots , if you try . Especially with the in-coming Administration , and their promises to , "Take our Guns" . By Executive order , if necessary . They don't have to take the guns . Just shut down the part of the one near monopoly that makes primers . And we all have a bunch of twenty pound door-stops .
 
Vista Outdoor CEO Chris Metz was on CNBC this morning.
Wow...how does he explain the incredible numbers of firearms sales and new firearms owners recently? Why, it's because of increased interest is self-sufficiency, hunting, and shooting.
 
Any 12 year old can make whisky. Jack Daniels was 12 when he bought the business from the pastor in his home town. Primers are just a little harder to manufacture.
 
They were so cheap years ago a bunch of rifle guys bought a bazillion and stashed them. These are now coming out of the woodwork..
Same with the MagTech primers. I bought up a few thousand of their 7 1/2 small rifle and they are a darn good primers. Don't hesitate on the magtech primers if you see any ime.
 

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