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Freedom Group pulls plans for IPO


imschur

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<blockquote> Freedom Group gave no reason for withdrawing the IPO but the company has been struggling as demand for its key products slips. It posted a $6.7 million loss on sales of $744.3 million last year, down from a profit of $54 million and sales of $848.7 million in 2009.

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Eric Wold of Merriman Capital, who covers firearms firms Smith & Wesson (SWHC 3.53, 0.00, 0.00%)  and Sturm, Ruger (RGR 23.05, -0.04, -0.17%)  noted that “the fastest growing part of the industry is handguns” and that Freedom “has none of it.”

He said “it is likely to see them make a move and acquire one of those two companies to put themselves in a better position for an eventual IPO.”

</blockquote>

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