Obama's court pick, Sotomayor, keeps gun stocks soaring

moneycentral.msn.com ^ | May 29 2009 | Louis Navellier

[neverdem]

President Obama's nomination of federal appeals court Judge Sonia Sotomayor to replace retiring Supreme Court Justice David Souter heralds yet another victory for gun-makers. Yes, you read that right.

Let me explain.

While most investors have been rightly focused on the crisis in the markets and economy lately, some Americans have been focusing on other political issues, namely the Second Amendment.

They wonder, will the Obama Administration and new Supreme Court nominee Sonia Sotomayor put the right to bear arms in jeopardy? Clearly, many think so, as evidenced by an increase in gun sales and an associated rally in gun stocks.

Indeed, two of my favorite gun stocks, Sturm Ruger & Co. (RGR) and Smith & Wesson (SWHC), rallied Thursday on the news of Sotomayor's nomination. But it's not just Sotomayor's nomination that has been lifting the gun-makers. The recession has helped, too.

Buying protection

You wouldn't think a recession as deep as the one we've been experiencing would be a boon to gun sales, but many citizens are arming themselves expressly because of the recession. You see, the recession has brought massive budget cuts to many municipalities. That means less fire and police protection. In response, gun sales are on the rise.

My response to this undercurrent is to recommend stocks that take advantage of the increase in gun sales.

Two of my favorite stocks to buy now make guns.

Sturm Ruger & Co. (RGR) is one of the leaders in the space, producing products across the firearm spectrum. The company is enjoying growing sales at a time of recession due to the political undercurrent. I rate the stock an A or Strong Buy.

Smith & Wesson (SWHC) was made famous by Clint Eastwood’s, “Dirty Harry” character. Some poor management decisions helped push SWHC to under $2 per share...

[Gaffer]

If you’re suggesting what I think you’re suggesting, it’s possibly brilliant.....What if...what if a certain company that made guns became SO effing big, it was too big to fail? Who/which company could this be? Would UNION labor have to be involved? Would we have to bribe these cretins with jobs to get their involvement? Very interesting idea....the money has to be there. That means EVERYONE must buy guns, guns and more guns, and ammo too!......Okay, people, get out there and do your patriotic part!!!!!

[TLI]

You see, the recession has brought massive budget cuts to many municipalities. That means less fire and police protection. In response, gun sales are on the rise.

Nice try. But I have YET to have anyone tell me that is why we are seeing the unprecedented in history purchasing of enough new rifles and pistols to arm armies of entire nations by American Citizens beginning with the nomination of the communist Kenyan for the communist “democrat” party that is being propagandized as “clinging to guns.”

And still they try and pass off the total vanishing act of all ammo in the entire United States as ”anticipation of a rise in crime or taxes.” No it is not. It is American Citizens that are grabbing every last single round that is put out on those shelves BECAUSE we have an anti-American communist Kenyan that refuses to identify himself "president" jamming every aspect of a communist/fascist regime down the throats of Citizens of this Republic.

THAT IS WHY AMERICAN CITIZENS ARE ARMING THEMSELVES TO THE TEETH.

So, just in case there are any White House lurkers out there that are still thinking you have some excuse to blab the “budget cuts” B.S. there ya go.

[Texas resident]

Also, another factor is that in border states, we are watching Mexico falling apart and the northern border cities are under the rule of the narco gangs. While all this is going on mugabe and his minions are talking about disarming us and not talking about protecting our southern border. DUH. That means that we are on our own if several million refugees start streaming across the border.

[AvOrdVet]

That means that we are on our own if several million refugees start streaming across the border.

Don't worry, when the battles start, thousands of "displaced" Texans will start flooding back into the state to re-enforce the homeland... ;-)

[Shooter 2.5]

Smith & Wesson (SWHC) was made famous by Clint Eastwood’s, “Dirty Harry” character.

Smith and Wesson didn't exist until a movie came out? What in the world did do without journalists informing of the things I thought I knew.