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Why Smith & Wesson's Shares Took Off
Daily Finance ^ | Nov 7, 2012 | Alex Planes

Posted on 11/08/2012 6:02:58 AM PST by KeyLargo

Why Smith & Wesson's Shares Took Off

By Alex Planes, The Motley Fool

Posted 6:22PM 11/07/12 Posted under: Investing

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Smith & Wesson (NAS: SWHC) were up 10% today after President Obama's re-election, because everyone now expects gun buyers to buy even more guns over the next four years than they did in his first four years.

So what: Despite occasional worries that President Obama will be coming after everyone's lawfully purchased guns, no such control measures have been put in place. That hasn't stopped record interest from gun buyers, which has pushed both Smith & Wesson and compatriot Sturm, Ruger (NYS: RGR) to incredible stock-price growth that's been fully supported by financial fundamentals. After the pop, Smith & Wesson's P/E is still only 21.2, and Sturm, Ruger's is even more reasonable at 15.3. Extrapolating from the first four years offers investors a reasonable glimpse into the next two, which are likely to see the same ginned-up hysteria from the gun lobby and no real action from the White House.

Smith & Wesson Holding Corp. (SWHC) climbed the most in two months to lead a rally among firearms manufacturers as traders speculated that President Barack Obama’s re-election will spur gun sales.

Shares of Smith & Wesson jumped 9.6 percent to $10.37 at the close in New York, the biggest gain since Sept. 7, while Sturm Ruger & Co. (RGR) rose 6.8 percent to $47.68. Both make handguns as well as rifles that include semiautomatic models.

Obama said last month he would consider reintroducing a ban on civilian purchases of military-style assault weapons.

(Excerpt) Read more at dailyfinance.com ...


TOPICS: Business/Economy; Constitution/Conservatism; News/Current Events; Politics/Elections
KEYWORDS: banglist; guncontrol; guns; obama


1 posted on 11/08/2012 6:03:09 AM PST by KeyLargo
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To: KeyLargo

Hey, Alex, you dummass.
We’re not so “worried” about 0bama coming for our guns as we are preparing for the “tie breaker”.

1st War of Independence, 1776, win
2nd War of Independence, 1861, loss
3rd War of Independence, 201?, ?


2 posted on 11/08/2012 6:09:38 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: KeyLargo
Ruger shares up 6.8% the day after the election.
3 posted on 11/08/2012 6:11:08 AM PST by TYVets
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To: KeyLargo

4 posted on 11/08/2012 6:12:31 AM PST by TSgt (...voters discover that they can vote themselves generous gifts from the public treasury.)
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To: TYVets

Examiner.com

Victorious Obama rockets back onto ‘gun control’ radar with UN arms treaty

Barack Obama
November 7, 2012
By: David Codrea

Mere hours after declaring victory and his intent for “reaching out and working with leaders of both parties to meet the challenges we can only solve together,” President Barack Obama demonstrated some of that “flexibility” he predicted he’d have after the election when his administration backed a “U.N. committee’s call…to renew debate over a draft international treaty to regulate the $60 billion global arms trade,” Reuters reported today.

http://www.examiner.com/article/victorious-obama-rockets-back-onto-gun-control-radar-with-un-arms-treaty


5 posted on 11/08/2012 6:13:17 AM PST by KeyLargo
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To: MrB

I can’t post a better written Bloomberg Business article to FR but here is the link:

Smith & Wesson, Gunmakers Rally After Obama Re-Elected
By Tim Catts - Nov 7, 2012 3:25 PM CT

http://www.bloomberg.com/news/2012-11-07/smith-wesson-gunmakers-rally-after-obama-re-elected.html


6 posted on 11/08/2012 6:16:11 AM PST by KeyLargo
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To: KeyLargo

Larry Guns in North Alabama was standing room only yesterday, they had to put limits on the amount of ammo you could buy.


7 posted on 11/08/2012 6:25:40 AM PST by Arkansas Tider (Army EOD)
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To: Arkansas Tider

Semi-automatic weapons for sale are on display at Texas Gun, in San Antonio, Texas

8 posted on 11/08/2012 6:31:21 AM PST by KeyLargo
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To: KeyLargo

Thank God for the small mercy of keeping the House.


9 posted on 11/08/2012 6:31:33 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: MrB

Entertainment
Ted Nugent Attacks Obama Voters in Angry Twitter Rant: “Pimps” and “Whores”

Follow us and never miss a story!
By Michael Allen, Wed, November 07, 2012

Donald Trump isn’t the only Republican who went on Twitter to berate last night’s election results [Trump later deleted part of his rant].

NRA board member and musician Ted Nugent went on an angry Twitter tirade, on Wednesday morning, against Obama voters calling them “pimps” and “whores.”

Nugent accused Obama voters of supporting a president who can “destroy America” and falsely claimed that President Obama “demands the hardest workers porvide” for people who do not work.

Nugent tweeted in part:

Goodluk America u just voted for economic & spiritual suicide. Soulless fools.

Pimps whores & welfare brats & their soulless supporters hav a president to destroy America.

So Obama still demands the hardest workers provide for the nonwotkers. Shared opportunitiesmy *ss.

What subhuman varmint believes others must pay for their obesity booze cellphones birthcontrol abortions & lives.

http://www.opposingviews.com/i/politics/2012-election/ted-nugent-attacks-obama-voters-angry-twitter-rant-pimps-and-whores


10 posted on 11/08/2012 6:38:04 AM PST by KeyLargo
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To: MrB

“Thank God for the small mercy of keeping the House.”

You said it!


11 posted on 11/08/2012 6:39:07 AM PST by july4thfreedomfoundation (November 6, 2012.....A day that will live in infamy!)
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To: KeyLargo

I am now a convert to the prepper mindset. I will be investing in firearms and learning how to use them. Same with food and basic survival tools. I see clear as day that a big crash is ineveitable.


12 posted on 11/08/2012 6:39:22 AM PST by circlecity
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To: MrB
Thank God for the small mercy of keeping the House.

Think outside the box. The members of congress should be thankful.
13 posted on 11/08/2012 6:40:57 AM PST by crosshairs (America: Once the land of the free. Still the home of the brave.)
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To: KeyLargo
falsely claimed that President Obama “demands the hardest workers provide” for people who do not work

Really? What's "false" about this assertion, Michael Allen?

Perhaps he hasn't blatantly stated it, but it is the inherent assumption and result of his stated and pursued policies.

14 posted on 11/08/2012 6:46:06 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: circlecity
"I am now a convert to the prepper mindset. I will be investing in firearms and learning how to use them. Same with food and basic survival tools. I see clear as day that a big crash is ineveitable."

Welcome to the jungle!

Otherwise, if you decide not to, then get plenty of this to prepare yourself:

15 posted on 11/08/2012 7:06:32 AM PST by KeyLargo
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To: KeyLargo
Business should also be booming for ammunition manufacturers such as Olin-Winchester and Alliant Techsystems. Even Walmart can't get enough of the popular ammo calibers, especially for handguns, to keep it in stock, and prices have skyrocketed over the past 2 or 3 years. I think it would be easier for Obama’s satraps to restrict ammunition by some hook or crook “safety” or anti-pollution regulations such as a ban on lead in bullets than to get a gun ban through Congress as it now stands. But even that would be difficult if not almost impossible IMHO. Even some Democrat Senators and House rats from moderate states and/or rural districts in liberal states are leery of supporting more restrictions on gun sales in the current overall pro-gun climate. Of course Tuesday's results may change that climate somewhat in the next Congress, just have to wait and see.
16 posted on 11/08/2012 7:26:46 AM PST by epow (The light of the world is Jesus)
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To: circlecity

Russia Says It Expects Obama To Be More “Flexible” On Missile Defense After His Re-Election…

http://weaselzippers.us/


17 posted on 11/08/2012 7:32:32 AM PST by KeyLargo
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To: harpseal; TexasCowboy; nunya bidness; AAABEST; Travis McGee; Squantos; wku man; SLB; ...
An old friend of mine who works for a firearms wholesaler out in Arizona sent this email earlier today:

" I did over $100K yesterday - we did $6 million as a company - they ran out of UPS trucks..."

Click the Gadsden flag for pro-gun resources!

18 posted on 11/08/2012 10:49:22 AM PST by Joe Brower (Sheep have three speeds: "graze", "stampede" and "cower".)
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To: harpseal; TexasCowboy; nunya bidness; AAABEST; Travis McGee; Squantos; wku man; SLB; ...
An old friend of mine who works for a firearms wholesaler out in Arizona sent this email earlier today:

" I did over $100K yesterday - we did $6 million as a company - they ran out of UPS trucks..."

Click the Gadsden flag for pro-gun resources!

19 posted on 11/08/2012 10:50:37 AM PST by Joe Brower (Sheep have three speeds: "graze", "stampede" and "cower".)
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20 posted on 11/08/2012 6:58:55 PM PST by RedMDer (https://support.woundedwarriorproject.org/default.aspx?tsid=om93destr)
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To: Arkansas Tider

I’ve bought many firearms from Larry’s. Actually one of the things I miss about AL.


21 posted on 11/09/2012 10:32:16 AM PST by Kadric
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