Sturm, Ruger & Company (RGR): Alliant Techsystems Inc. (ATK) Has Sights Set on Bigger Game

My Foolish colleague Rich Smith thinks Alliant Techsystems Inc. (NYSE:ATK) has overpaid for Bushnell, and won’t begin to see a return on its investment for at least two years. While you can’t pay for growth at any price, I’m not so sure this still isn’t a good deal. Particularly as President Obama continues an end run around Congress by issuing executive orders to effect gun control, demand will stay hot and keep manufacturers busy for a long time to come.

With defense spending pinched and slower orders hurting performance, it makes sense that ATK wants a larger piece of what is a fast-growing pie. Of course, how long the pendulum swings in this direction remains to be seen, but its barreling along like a rifle shot at the moment. Considering the shortages of ammunition created by fears of gun control and massive government purchases, adding a new component to its domestic line means ATK still aims to win the war.

The article ATK Has Sights Set on Bigger Game originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of Sturm, Ruger.

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