30 Comments

Jews gonna jew.

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Stupid gonna racist.

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Metz and Priyadarshi, two notorious jewish surnames. You absolute dunce

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Priyadarshi is Hindu. . .

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you read this whole article and this is what you take away? I guess dumb people can still read..

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Our Creator says that "He will bless those who bless the Jews and curse those who curse them". You're calling down curses on yourself by blaspheming the Jews.

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founding

Break free of your perception bubble, you're being radicalized by the actors who want civil war. I prefer Metal Gear Solid stays fiction.

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The author hasn't done his homework. There have been a number of new ammo makers in the market as well as many of the smaller manufactures increasing their size and production. One problem is that there are 6 million new fire arms out there in the last 2 years and that is a lot of ammo use added to the ordinary usage. Supply line problems, wages increasing, high inflation, all contribute to the shortages and price increase. Bought any gas or groceries lately?

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I agree. I work for one of the brands that Vista Outdoor owns. We expanded production and are struggling with staffing the extra capacity. Unfortunately all of the departments making components are having the same staffing issues. Meanwhile we are being flogged to produce. Yes, when the market declines, our company will decrease production and a lot of employees will lose their jobs. Vista lost a lot of money during the last downturn in ammo sales. A lot of debt was accrued keeping the doors open. But to say that Vista might be doing anything today to limit production simply is not true. The only thing limiting production is training new employees to perform a physically demanding job.

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I used to favor buying the slightly more expensive US made ammo in the past because of US jobs and such, but since the US ammo companies have not invested in any increased capacity and just let the prices rise while inventory shrinks, I now have no qualms buying Czech, Mexican, Israeli, Philippine, Swiss, Serbian, Italian, etc. My loyalty has sailed.

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Someone lied to you. At least one company did expand during this ammo shortage. That expansion means 2 million rounds per day in capacity. Why would an American company, or any company for that matter, not want to keep or expand their market share?

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What company? Gotta a link?

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And technically when Vista purchased Remington it was an expansion to increase capacity. The Remington plant was closed. Nothing was coming out of that plant. Vista Outdoor had to reopen the plant and staff it with employees. What the author of the article implied might not be entirely accurate.

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CCI/Speer added a fifth line in the centerfire pistol department.

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Link????? Adding a "line" isn't increasing capacity. Adding a NEW factory, or NEW machinery is adding capacity. Increasing the number of workers on existing capacity is just using the capacity you already have.

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So how is spending 2 million on another production line not adding capacity? Adding a line is adding machinery. Vanderbrink had a video out a year ago talking about it. Go find your own link.

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Spending 2 million on what? "Another production line" is merely using EXISTING capacity. And people who claim someone is lying should back up their claim with attached links to facts, otherwise, they are the one who are lying.

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Matt, me and my founding team are launching a direct answer to this problem on 7/1 - the United States Ammo Exchange. Think NYSE or London Metals Exchange, where users will trade physical ammunition stored in armories. The idea is to create a true free market where prices are set by buyers/sellers. Would love to discuss further if you are interested in a follow-on piece.

-Christian (christian@gocontrarian.com)

AmmoExchange.com

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What if everyone stopped buying ammunition and adding new firearm purchases? Curious if they see no one buying would suggest over pricing markets and less demand. Yes I am aware we love our firearms and use them for various personal reasons. But when they see hunters and sport shooters stop purchasing for a lengthy time frame might just serve two purposes. Drive prices down and overstock of ammunition to play catch up. Switching to bow hunting would really throw the industry off because of the fear of unknown for their customers. Just a thought please don't attack. I do hunt often and sport shoot myself.

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Interesting article. But you completely ignored that there are other players in the ammo business. For example Ammo Inc or $poww. They are literally a few months away from a 160,000 sq.ft brand new warehouse being opened up.

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I was going to post the same, so thank you! I am interested to know if the author has thoughts on the newer, smaller players in this. Ammo Inc also owns gunbroker.com which I feel is a big deal. (full disclosure, I own POWW shares).

Also relevant in my opinion is the fact that the brandon administration banned imports of russian ammo, which is what most people use for cheap range plinking. No access to Wolf or Tul rounds has to be a factor here as well.

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Yea I have been adding $poww at these levels. They are definitely set up for the future. Did my DD there. New factory. Making money every quarter and growing. Market is just hammering small cap stocks right now. Process needs to play out before this stock will have any reversal. Gotta be close IMO. Market cap is like $576k now for a company that will do $300mil in revenue this year and $100-125 mil in profit. Crazy

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Than the question is, will the big ammo companies retaliate at anyone who dares to buy from these upstarts?

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Last month Ammo Inc ($poww) and Vista Outdoor ($vsto) actually made a 5 year deal. Ammo Inc is a producer of brass casings and Vista produces primers. So they essentially trade to each other. 5 years deal to supply each other. So clearly Ammo Inc is in good standing with Vista. I think the road Vista will eventually buy them out too. Makes all the sense in the world

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Jan 6, 2022·edited Jan 6, 2022

"And the limits on capacity were explicit. The head of ammunition for Vista, Jason R. Vanderbrink, explained that the “most important” reason for the Remington acquisition was “added capacity to Vista without increasing the overall market capacity.""

And yet it's Democrat presidents that right-wing gun owners fear will take away their guns and ammo.

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Some prefer to disengage from the one lane methods. It has not a fucking thing to do with political wonks more intent on building their dynasties than service to the nation. Allegiance to the "Nuke a whale for the shah," splinter fictional 50mm strong etc, yatta while ironic, humorous and totally obscene is more or less where WE all are now. When Alexa or that other one starts giving you a line item report on your day in 15 minute increments are you blithe or foolish enough to think you the maker of the data is first to receive your data. If you believe it anything other than agenda driven may God have mercy on us all. Our 330mm and the other 9.7BILLION residents are in tai fun oceans and the damn lights just went wonky. In case it has been missed the engines stopped turning when wuhan goo hit the neighborhood. String of coincidences, oh hell no. Stop pointing at the eponymous THEY and think through the crap to see Orwell was right but his time frame was 5 decades off. Double speak text book comment from Vanderbrink following my personal fave the pharma CEO chortling about giving away the starter shots and charging 150usd per necessary boosters. He expects profits "Never seen in his industry/company." Care to bet on how accurate current indicators are and will remain? Right, left or agnostic all must keep eyes on and be ready to stand behind reason, not agenda. In saner days it would be called rational thinking. Now it is labeled, politically incorrect. Oh my the slope is blue ice and our control edges shattered.

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Price fixing to insure stability is not bad. In fact this is how the economy USED to work when we were focused on production and jobs instead of minimizing retail price. When people are working and receiving wages, they can afford higher retail prices.

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You conveniently ignore the fact that the real wages of Americans have remained stagnant for the last few decades, as a result of the intentional flooding of labor markets with legal and illegal immigration.

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Jan 6, 2022·edited Jan 6, 2022

Don't forget permatemping. The labor market was 'flooded' with women (edit to add: and GIs) in the post-WWII era without loses until the permatemp agencies saw this as an opportunity to skim wages by offering contract labor.

The market can handle masses of new employees without sacrificing wages; it did it every year during the original Baby boom era. As long as permatemping and H1B shenanigans aren't actively undercutting wages.

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Jan 6, 2022·edited Jan 6, 2022

It's "ensure", not "insure." Your mistake has no effect on your argument, even if you chose the correct word, you'd still be wrong. No economy has "worked" by price fixing. edit: and price fixing often has an effect opposite of what you desire: it will destabilize markets.

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