Well, the stock became a buy again a couple of weeks ago. With SWB solidly under $5, it seemed that the hype was gone, and the stock again offered a reasonable entry point to bet on the gun maker's continuing turnaround. Monday's fresh round of insider buying only makes me feel better about the upgrade, as it eased my worries over a near-term trading risk.

That risk involved Smith & Wesson's recent share offering. Shares traded very poorly last week leading up to the release of its financial results for the first quarter (ended July 31). The displeasure of some investors regarding the company's just-completed PIPE, or private investment in public equity, offering was palpable.

Fortunately, the quarter came in just fine. The gun maker posted revenue of $32.6 million and EPS of 7 cents. The top-line figure represented a perfectly good 14.4% year-over-year increase. EPS was helped by a one-time gain, but excluding extraordinary items, the firm met expectations.

Poised to Go on the Offensive