Tactilite Blog

Via Everyday, No Days Off...

Zel Custom is the leading manufacturer of .50 BMG uppers for AR-15s, .50 BMG conversion kits for AR-15s, also offered in .338 Lapua, .416 Barrett and .408 CheyTac.

I was recently having the classic "virtue of savings" discussion with my 6-year old twins, when I realized that with their savings account paying 0.7% (that's 7/10ths of one percent, my friends) and inflation running 1.5% (-ish), the whole "let your money work for you" part of the discussion just has to go right out the window.

With guns and ammo prices back down to normal, these items may be a better hedge against inflation than your bank account.  Definitely more fun.

Zel Custom Manufacturing is the world leader in manufacturing .416 Barrett, .50 BMG, .338 Lapua and .408 CheyTac uppers for AR-15s.  These are fast, fun conversion kits that fit all AR-15 style rifles.

I just saw this LWRCI rifle case designed to look like an acoustic guitar case, via Advanced Armament Corp's blog, which was via Says Uncle.

Zel Custom Manufacturing is the leading manufacturer of quality .50 BMG uppers for AR-15s, also chambered in .416 Barrett, .338 Lapua and .408 Chey Tac.

From time to time, we get inquiries about making the Tactilite T1 in .408 Chey Tac.   Well, it's finally here.  We've committed to making a small run (about a dozen units) of the Tactilite T1 "Duty" in .408 Chey Tac, featuring a Lothar Walther standard steel barrel.

I believe this will make us the first company to build an upper or conversion kit for AR-15s, chambered in the spectacular .408 Chey Tac cartridge. Despite my initial hesitation to get into another ultra-niche cartridge, my enthusiasm has been growing each day, and I'm now pretty charged up about it.  The first receiver is scheduled to come off the mill, today.  I'm hoping to have the first one completed in two weeks and looking forward to reporting back to you.

Zel Custom Manufacturing builds the finest AR-15 conversion kits and AR-15 uppers, chambered in .50 BMG, .416 Barrett, .338 Lapua and, now, .408 Chey Tac.

The Firearm Blog reports that Israel Weapons Industry has released a new Galil line of rifles.  I've always like the idea of the Galil.  Before the days of high-tech Israel, Israel had an almost "British" ability to do something amazing with nothing.  Combine that knack with the AK platform, and my assumption has always been that it's probably pretty interesting.  Sadly, the Firearm Blog speculates that no civilian version will likely be released.  It's difficult to understand why a company would go to the expense of developing a rifle, and then choose to not compete in the largest market in the world.

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Cool video via Everyday, No Days Off:

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The Freedom Group ("TFG") released their 2Q earnings (see investor relations, below).  This is a very tough industry, which would seem to hold a lot of promise for the benefits of consolidation.  So, consider me a basic believer.

Their success or failure will be a classic MBA study in execution.  Namely, how to keep the core qualities of the acquired companies, while shedding or improving those qualities that made those companies less than they could otherwise be.  There's "done easy" and "done right."  It seems like the Freedom Group is erring towards caution in its integration, which suggests they prefer "done right."

While I am a basic believer, there are of course, reasons for concern:

First, I have general skepticism towards companies in slow-growth industries spun off by private equity companies.  Obviously, private equity firms are incented to leverage these firms as much as they think the market will bear.  In the current credit environment, in a challenging industry (such as this), post-IPO without a private equity sponsor, I have general skepticism about TFG's debt-to-equity picture.

Second, timing is everything and TFG's timing is unfortunate.  This is a tough market for just about any IPO that doesn't promise a broad-based efficiency breakthrough. Managing this company towards IPO, in this current tough competitive environment, while balancing the done easy / done right pressures, is going to require remarkably skilled and disciplined management.  Which TFG may very-well have.

Third, the industry is prone to boom and busts.  And we're in a bust period for black rifle manufacturers.  While TFG's strategy of diversification is great and will go reasonably far towards smoothing earnings, it can only do so much to relieve the margin pressures in the industry. This sheds a glaring light on the lack of meaningful exposure to pistols in TFG's product line-up.  The new Remington 1911 is a step in the right direction.  And, after all, everyone needs another 1911, right?

Fourth, and somewhat related, the industry is marked by fairly low barriers to entry and a glut of innovative companies (such as Zel Custom), which keep margins low and pressure to innovate high.  On the bright side, this could play to the strength of a well run and well diversified company.  In most cases, however, they're going to be behind the curve.  But, hey, at least they'll be on the curve, unlike an undiversified company.

Finally, as an enthusiast, I am concerned about what a ripe political target TFG represents.  I am reminded of how the Clinton administration targeted the, then, stand-out companies of Colt and S&W.  Should the political climate shift, TFG will be front and center for government pressure and private lawsuits.

I look forward to reading the report and seeing the IPO.

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Since we carry LaRue scope mounts, you may see these shortly added to our line up of .50 BMG accessories.  Via The Firearms Blog:

VFZ is a new theory in the concept of clamping accessories to MIL-STD-1913 rails. Instead of using a horizontal cross-bolt, the VFZ uses a vertical bolt that draws up a clamping foot against the lower angle of the rail...seating the mount similarly to a fully-closed LaRue lever. Once installed on the firearm, index marks allow the user to remove the mount, then reattach to the same tension, providing unprecedented return to zero for a non-QD-levered mount. The unique vertical alignment of the clamp allows components that are structurally stronger than traditional cross-bolt designs.

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This is not in anyway related to .50 BMG AR-15 uppers, .338 Lapua conversion kits or .416 Barrett rifles.  The catch is so absolutely amazing, that I had to share it.

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Here's a great chart illustrating the relative size of different ammunition (click on graphic to embiggen).

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