Smith & Wesson (SWCH) Shoots Investors In the Foot
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Smith & Wesson Holding Corp. (Nasdaq: SWHC) is getting slashed today following weak preliminary results for the second quarter. The 155-year old gun maker said, while sales for the quarter grew up to 40%, softness in hunting rifles and shotguns led to the shortfall. Smith & Wesson blamed a lack of consumer demand, a pre-season build-up of retail inventories and unseasonably warm autumn weather.
Smith & Wesson said it sees second quarter earnings of $0.05-$0.07 per share, which falls below the Wall Street consensus of $0.12. Revenues for second quarter are seen at $69-$71 million, well below the Wall Street view of $82.44 million. Smith & Wesson now sees fiscal 2008 revenues of $325 million, below their prior guidance of $330 million.
Shares of Smith & Wesson are down about 36% in mid-day action Tuesday.
Some large Smith & Wesson holders getting caught in today's downdraft include Director, Colton R. Melby, who, with his 9.7% stake, lost about $28 million today. Mitchell A. Saltz, another director, lost about $19 million.
Other large Smith & Wesson holders include Marcus New (9.2%), Morgan Stanley (4%), JP Morgan Chase (3.8%) and Emerald Advisers (3.5%).
Jim Cramer, of CNBC fame, made a timely call on Smith & Wesson just days before today's collapse. Cramer told viewers of Mad Money on 10/26 to "ring the register" on the stock.
Smith & Wesson said it sees second quarter earnings of $0.05-$0.07 per share, which falls below the Wall Street consensus of $0.12. Revenues for second quarter are seen at $69-$71 million, well below the Wall Street view of $82.44 million. Smith & Wesson now sees fiscal 2008 revenues of $325 million, below their prior guidance of $330 million.
Shares of Smith & Wesson are down about 36% in mid-day action Tuesday.
Some large Smith & Wesson holders getting caught in today's downdraft include Director, Colton R. Melby, who, with his 9.7% stake, lost about $28 million today. Mitchell A. Saltz, another director, lost about $19 million.
Other large Smith & Wesson holders include Marcus New (9.2%), Morgan Stanley (4%), JP Morgan Chase (3.8%) and Emerald Advisers (3.5%).
Jim Cramer, of CNBC fame, made a timely call on Smith & Wesson just days before today's collapse. Cramer told viewers of Mad Money on 10/26 to "ring the register" on the stock.
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