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I still seriously doubt that report. Now VSTO, Vista Outdoors, is a publicly traded company so there is plenty of financials and analysts reports to read through...
I'm looking now at some of the VSTO SEC filings and analyst reports, there's still more detail for me to look at, but off the top I see no increase in on-hand inventories and no huge costs, profits or otherwise, through the 2020 annual and the latest 10-Q. There is a lot of variability in their financial performance, and they are middle of the pack/slightly below mid level as far as financial performance in the leisure industry. Their market cap is not especially high.
Overall several analysts do have a buy or equivalent recommendation but there is nothing that I see so far that would indicate any hoarding, sitting on inventories or big market plays to sink other competing firms or whatever. If someone wants to remove their competition they usually try to flood the market with their own goods at lower than normal prices (think "gas wars" of the past, or China undercutting American firms) -- they don't hoard their own materials. And that usually means they take losses for a while, hoping the competition cannot stay in the game. And such behavior (hoarding) would make their inventories and costs both go way up but revenues go way down... and analysts typically find those things out and talk about them.
So.... where is the financial analysis that proves the article's points? Perhaps OP has done the analysis and could enlighten us?
I personally don't believe any statements of "a billion $$ in backlog" unless they are willing to say that under oath to the SEC. Otherwise, just water-cooler brag.
I'm looking now at some of the VSTO SEC filings and analyst reports, there's still more detail for me to look at, but off the top I see no increase in on-hand inventories and no huge costs, profits or otherwise, through the 2020 annual and the latest 10-Q. There is a lot of variability in their financial performance, and they are middle of the pack/slightly below mid level as far as financial performance in the leisure industry. Their market cap is not especially high.
Overall several analysts do have a buy or equivalent recommendation but there is nothing that I see so far that would indicate any hoarding, sitting on inventories or big market plays to sink other competing firms or whatever. If someone wants to remove their competition they usually try to flood the market with their own goods at lower than normal prices (think "gas wars" of the past, or China undercutting American firms) -- they don't hoard their own materials. And that usually means they take losses for a while, hoping the competition cannot stay in the game. And such behavior (hoarding) would make their inventories and costs both go way up but revenues go way down... and analysts typically find those things out and talk about them.
So.... where is the financial analysis that proves the article's points? Perhaps OP has done the analysis and could enlighten us?
I personally don't believe any statements of "a billion $$ in backlog" unless they are willing to say that under oath to the SEC. Otherwise, just water-cooler brag.
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