IF...Glock went public...........would you buy their stock?

[bocaboca]

I dont know if it will ever happen BUT if they did have a stock offering.....would you invest in the company?

I have a small investment a 26, but I would love to OWN a piece of the rock.

[Civitas]

Glocks are great but the answer is no. Companies generally go public either because they are in real trouble or they are planning a big expansion. I don't see a way that Glock could quickly quintuple sales, so I would interpret an IPO as real trouble.

Now if there were a way to make a private investment, yes I would do that... but Gaston is too smart to give away pieces of his company.

[EdMan63]

Well I guess you would have to look at the firearms market and determine what the growth potential is (shrinking or expanding). Plus Glock would have been a great opportunity 10 years ago, not necessarily now. I believe they have experienced their most substantial growth and any additional growth will be small. I don't think you would lose at all, but the potential for real profit may have passed. Plus the initial offering would be high at this point.

[Nemesis Lead]

An MBA perspective.....

Gaston could sell the company if he wanted to cash out (much of the company's value is "locked up"). But he is already probably richer than God, so not sure what the point would be other than if he wanted to do something entirely different (toy maker?), build a castle or buy a small island.

Would I buy? I would buy into the IPO if I could get in early, but I think the company would eventually tank in the long run.

Why?

The terrific quality of the Glock handgun would mean that this stock would rise quickly from its IPO price. There would be lots of excitement and big expectations. The price would rise fast and then tank because:

1) No growth. Glock is not exactly a hotbed of new product innovation. Where is the Glock rifle?

2) New and serious competition in their core market. Lots of good polymer handguns out now. I love my Glock, but my XD is just as good.

3) Much of the success of Glock may be due to Gaston himself. After a sale, who will run the company? Will Gaston check out with his millions?

[slewfoot]

NO....I think Glock is a company on the verge of becoming stagnant.

Their market is as big as it will ever get. Their innovative design which took the firearms industry by storm, has disappeared by advances of other gun makers.

Their only salvation would be a huge military contract. I don't see that happening.

[speedsix]

NO....I think Glock is a company on the verge of becoming stagnant.

Their market is as big as it will ever get. Their innovative design which took the firearms industry by storm, has disappeared by advances of other gun makers.

Their only salvation would be a huge military contract. I don't see that happening.

I agree. I love my Glocks but don't think the company is going to expand in the future like it has in the past. The days of Glock doubling sales every year are long gone. Still, it probably wouldn't lose money so it would be a safer investment than say Kel-Tec or some other smaller and newer company. Kel-Tec could go under any day but Glock has so many police sales that they have a steady income.

If I were going to invest my hard earned money in a gun company it would be Bersa. They are better than Taurus so there is plenty of upside to be had.

[slewfoot]

the only secure investment in the gun maker category would be Colt or FN. They have the bulk of the military contracts.

Any gun maker depending on civilian sales are on shaky ground. If any type of gun restrictions come out of Washington, they are doomed.

[9mmdude]

Yup I would.

[bustedknee]

Like I bought S&W?

http://www.allbusiness.com/legal/legal-services-litigation/5330117-1.html

[Kentak]

No. It would have been a great move 20 years ago, though.

It's difficult to see where any dramatic growth of the enterprise would occur. Its current line up hits just about every combination of caliber and size. What new products are left? A carbine? Small, single stack pistols that are more concealable? A Glock assault rifle?

A Glock stock might be something you could count on for reliable, conservative income, but probably not dramatic growth.

Maybe when new management takes over...

K