- The sector in which this company operates offers few opportunities because it is already saturated and subject to many regulations.
- Smith & Wesson in its long history has proven not to be a good long-term investment. Today the company is trading at the same price as in 2007.
- The company is dependent on third parties to purchase materials such as steel, wood, lead, brass, and plastic.
- A fair value calculation results in a price of $36.01 while the stock is currently trading for $14.19. Even applying a 30% margin of safety, the stock continues to be trading at a discount.
For further details see:
Smith & Wesson: Too Much Discontinuity