FEATURE
NRA Underway/New
Rumors, New Products
Today, the 147th edition of the
National Rifle Association’s Annual Meetings & Exhibits opens its doors to
Dallas attendees. And as the crowds file in, the conversations are already
pointing toward the simple fact that we really have become a nation of
“skimmers” not full-text readers.
“Skimming” is the best explanation
of the furor following Vista Outdoors’ (NYSE:VSTO) release of strategic
planning and evaluation information earlier this week.
In that information, Vista
explained their strategic decision to focus on core strengths. That process
(underway for more than a year, not in response to recent occurrences) includes
evaluations as to which of the myriad of products and companies best
represented Vista’s best-opportunities to grow and prosper.
That evaluative process
included a hard look at the areas where two situations exist: 1) the products
were outside core competencies or , 2) growth would require
significant capital investment.
The first cut evaluation (core
competencies) meant that the Sports Protection division, which includes Bell,
Giro and Blackburn helmets and the Jimmy Styks paddle boards were likely
candidates for divestiture.
The second-- significant
capital investment-- meant that Savage and Stevens gun companies might
be sale candidates.
Cue the online firestorm.
Vista was immediately set upon
by “digital experts” who see the suggestion of a course of action as
the pronouncement that both Savage and Stevens gun companies were goners.
Having spoken with Vista
officials, here’s the short version of that position: it is
wrong.
Savage and Stevens are still in
business, in production, and operating as normal. Vista said it was EXPLORING
strategic alternatives, not shutting the companies down, putting them on the
block, or -as many have erroneously reported- exiting the firearms
business.
Savage and Stevens are, we’re
assured, very viable brands.
But that’s not the issue. Vista
is concerned with the overall health of the company.
Making Savage and/or Stevens
into full-line companies would call for significant capital expenditure -
with no guarantee their products would resonate with consumers.
That’s the equivalent of a
corporate crap shoot. Instead, you’re well-advised to consider what they’d be
worth to others -in their present, working, form.
After all, Savage makes high
quality long guns. Stevens is also a well-regarded brand.
Dispassionate business
observation makes it pretty obvious that either company could succeed as
stand-alone businesses. They’re solid, niche companies. And niche products
seldom flourish in conglomerates.
Since 2017, Vista’s been in the
midst of a deleveraging program.
Deleveraging a corporation is
no akin to lowering your debt burden as an individual. You look at the things
that are making -or costing- you money, determine the likelihood of improving
them, and try to cut unnecessary spending.
It’s more complicated as a
business, but the concept’s the same.
Vista tells me, theirs is an
“unwavering commitment to the Second Amendment” - and their commitment is
reflected in their focus on their ammunition and accessories businesses.
Just thought you’d like to hear
their side of the story rather than the rants and declarations of others.
Yesterday afternoon, SIG SAUER
rolled out a new offering from their “Electro-Optics” division. I’ve kidded
their officials for using that categorization for “gunsights and rangefinders.”
Now I “get” why they’ve
characterized them that way.
Their new BDX system (details
in today’s news section) integrates a riflescope, rangefinder and phone app
into a connected system designed specifically for hunting.
I say specifically designed for
hunting because of a core functionality designed to promote ethical hunting-
not just enabling shooters to simply increase the ranges they feel capable of
shooting. There is a difference. Target shooting isn’t the same thing as
hunting.
SIG SAUER’s New BDX system
enables longer shots while simultaneously setting reasonable expectations
from your rifle. Jim Shepherd/OWDN photo.
The new BDX (Ballistic Data
Exchange) rangefinders and riflescopes exchange information with each other
wirelessly (bluetooth) after being linked by the SIG BDX smartphone app. Based
on the ballistic profile you create in the app, the rangefinder and riflescope
communicate and calculate the firing solution to your target. Then you put the
illuminated dot on your target and fire.
But not so fast...the system
also includes a “KinETHIC” step.
What that marketology-rich word
(KinETHIC) means is the system determines if you have sufficient kinetic energy
to take and ethical shot at your game. There’s a calculable
threshold below which the kinetic energy transferred wouldn’t be
sufficient to yield an ethical kill shot.
As Electro-Optics manager Andy
York says, “Ethics in hunting are a contract we make with ourselves based on
standards sportsmen adhere to as a group- what we feel good about personally,
and respect for the game and hunting traditions.”
The KinETHIC system asks that
the hunter make an educated and ethical decision beforehand by
setting guidelines beyond the simple “reach out and touch” solution of most
systems.
As York says, “knowing your
maximum effective hunting range is more than knowing just what you can hit.”
Looking forward to getting some
time on the new system-because this additional wrinkle in the system brings the
realities of hitting something versus humanely harvesting game together in one
package.
As always, we’ll keep you
posted.
--Jim
Shepherd
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