Seeking Alpha

Smith & Wesson (SWHC) and Sturm Ruger (RGR +1%) could see additional volatility tomorrow...

Smith & Wesson (SWHC) and Sturm Ruger (RGR +1%) could see additional volatility tomorrow depending upon how far President Obama goes in loading up gun control as a major topic in his State of the Union address. Despite the passionate rhetoric from both side, analysts see the most likeliest scenario on the issue is that common ground on background checks will eventually be struck between the NRA and the Obama administration. If that's the result, gun demand could cool off compared to recent months, but long-term trends could stay in play.
Comments (3)
  • LMcIntyre2011
    , contributor
    Comments (3) | Send Message
     
    Why would a change in background checks make any difference in the purchase of handguns by law abiding citizens?
    13 Feb 2013, 04:51 AM Reply Like
  • david8263
    , contributor
    Comments (15) | Send Message
     
    I suggest we create a new technical ... Sentiment ... with RGR and SWHC and perhaps others the "sentiment" is 'the government is going to outlaw guns so before they do I better buy' ... That's assuming most Americans can handle 5th grade math with Jethro ... there's no way "radical" gun control will ever pass the House ... Over the long term I believe these positions will cool off ... but for now, maybe over the next two 10Qs I see upside ... as far as length of investment when does a trade turn into an investment ... I plan on staying in these until May or June ... so whether or not I'm "trading" them or "investing" in them I guess is a matter of semantics ...
    13 Feb 2013, 03:52 PM Reply Like
  • bboggs
    , contributor
    Comments (43) | Send Message
     
    I would not be surprised to see SWHC go private if the Government and Pension plans become too aggressive. Being private would take SWHC off the public radar screen allowing the private owners to benefit from the profits.
    14 Feb 2013, 03:53 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs