Seeking Alpha

The gun trade is back on with shares of both Sturm Ruger (RGR +4.3%) and Smith & Wesson...

The gun trade is back on with shares of both Sturm Ruger (RGR +4.3%) and Smith & Wesson (SWHC +5.4%) both running hot. Though analysts predict that typical election year jitters will bounce around shares of gun sellers as polls gyrate, they also see that on a macro level gun ownership is gaining more widespread social acceptance. Data on FBI background checks backs up the premise, as checks stand up 20% YTD compared to last year.
Comments (12)
  • You think Ruger wants to make a campaign contribution to Obama?...
    the stock is up 565% since he came into office ( dividends reinvested)
    20 Jun 2012, 02:10 PM Reply Like
  • when people see their leaders flaunt the law they have a tendency to cling to their guns; "leaders" that announce they will disobey the law
    and do what they want
    20 Jun 2012, 02:19 PM Reply Like
  • Just think if Chicago opened up to legal gun ownership.....another 20% gain right there...yes people are buying guns as Obama has always sided with the criminals
    20 Jun 2012, 02:26 PM Reply Like
  • there are too many dead bodies to get out from under in this name.
    stay out.
    20 Jun 2012, 02:29 PM Reply Like
  • Well, as gun ownership continues to go up...that is, ownership by law-abiding citizens...the crime rate continues to go down, especially violent crimes. Apparently most of the "dead bodies" are those of criminals.
    20 Jun 2012, 02:55 PM Reply Like
  • right you are

    20 Jun 2012, 03:03 PM Reply Like
  • Huh, I liked the comment, but do you care to elaborate?
    20 Jun 2012, 03:46 PM Reply Like
  • Read 4 years ago that Obama would ban all handguns on his first day in office, Fox News.
    20 Jun 2012, 03:38 PM Reply Like
  • He is trying to...with His Fast an Furious game....selling guns to Mexican drug cartels and then tell the General Public that we should ban all guns...but it backfired on him when they killed our Border Police...Kind of sad our President is killing our border police...but in his mind ...the ends justify the means...whats a few dead Americans
    21 Jun 2012, 08:32 AM Reply Like
  • If it appears Obama is going to get blown out it would probably be good to have exited long positions. If the race stays close and gets even uglier I believe RGR should be a hold. That's how I am playing this stock going forward after buying and selling this stock 6 times for the past year where I was selling the rips.
    20 Jun 2012, 10:54 PM Reply Like
  • I think the handgun ownership boom is more a function of a deteriorating economy and social fabric in the U.S.. Chronic unemployment and massive wealth inequality always leads to social unrest. Ruger will sell handguns like hot cakes under Romney too.
    21 Jun 2012, 07:32 AM Reply Like
  • In some ways this stock seems like a safe haven for people who think anarchy is around the corner. It is reminding me of gold.
    21 Jun 2012, 10:12 PM Reply Like
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