Gunmakers’ Stocks Rise On Hillary Clinton’s Tirade
Smith & Wesson Holding Corp. (NASDAQ:SWHC), and Sturm Ruger & Co. (NYSE:RGR) rose after angry comments by Democratic presidential candidate Hillary Clinton triggered worry among gun enthusiasts that restrictions on sales could be coming.
Mrs. Clinton detailed proposals Monday aimed at closing gun-sale loopholes and holding sellers more accountable for how the weapons are used. US President Barack Hussein Obama last week said he would pressure Congress to enact legislation that would curb firearms violence after a gunman killed 9 people and himself in Oregon.
There is a joke among gunmakers that US President Obama is the world’s best gun salesman, and there is data to support increased purchases of firearms heading into the Y’s 2008 and 2012 elections, Hillary Clinton is vying for the same job.”
Smith & Wesson, whose brands also include M&P and Thompson/Center Arms, rose 7.3% to close at 17.81 in New York Monday, the biggest 1-day jump since 28 August, Sturm Ruger, maker of Ruger American, Gunsite Scout and Hawkeye weapons, increased 2.6% to 57.93/share.
Retailers that sell firearms also benefited.
Cabela’s Inc. gained 2.9% to 45.40, while Dick’s Sporting Goods Inc. increased 2.5% to 52.28.
The gunmakers’ shares have seen gains in recent years in the wake of mass shootings that have led to increased calls for gun-ownership restrictions. Both companies also have seen sales rise in response to the politicians’ demands for tougher legislation. Those efforts have all fizzled.
Analysts estimate that firearms sales will rise at about 2X the US GDP, as more women, young people, and urbans want personal protection and as target shooting increases in popularity. Target shooting is the new bowling.
|Analysis for RGR:||Overall||Short||Intermediate||Long|
|Bearish (-0.31)||Bearish (-0.41)||Neutral (-0.23)||Bearish (-0.28)|
|Analysis for SWHC:||Overall||Short||Intermediate||Long|
|Neutral (0.19)||Neutral (-0.03)||Bullish (0.40)||Neutral (0.22)|