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GE Capital (GE +2.5%) cuts off lending to gun shops in response to public backlash since the...

GE Capital (GE +2.5%) cuts off lending to gun shops in response to public backlash since the Sandy Hook shootings. Though the company isn't the first financial firm to back away from involvement with the gun industry, the development puts the spotlight back on sellers such as Dick's Sporting Goods (DKS -0.4%), Wal-Mart (WMT -1.2%), and Cabela's (CAB +0.9%) which could see more foot traffic. It's also of interest to gun manufacturers Smith & Wesson (SWHC +0.8%) and Sturn Ruger (RGR -0.8%) - wallowing around with relatively low P-E ratios with future demand tough to forecast.
Comments (32)
  • eddieojr
    , contributor
    Comments (47) | Send Message
     
    Seems to me a foolish response to the pc issue of the day. Why do they not base such a decision on business fundamentals like: A borrowers ability to pay back the loan, or will a loan make GE money. Don't own the stock, doubt I ever will, unless GE starts performing much better as a business.
    24 Apr 2013, 03:45 PM Reply Like
  • Bjerre
    , contributor
    Comment (1) | Send Message
     
    Because GE appears to have a social conscience, a phenomenon all too rare in this capitalist country
    24 Apr 2013, 09:13 PM Reply Like
  • rambler1
    , contributor
    Comments (409) | Send Message
     
    Hey John Thain @ CIT I smell opportunity.
    24 Apr 2013, 03:59 PM Reply Like
  • kingcozzi
    , contributor
    Comments (127) | Send Message
     
    I think this has more to do with Jeff Immelt's secret love affair with Obama and the democrats. Of course he is going to do this. GE might as well start paying dividends to the democratic party, because they are the real shareholders here.
    24 Apr 2013, 04:25 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2499) | Send Message
     
    What public backlash? There isnt even enough support to get the gun bill through Congress.
    24 Apr 2013, 04:30 PM Reply Like
  • The Last Boomer
    , contributor
    Comments (886) | Send Message
     
    "Only" 90% of Americans supporting background checks obviously shows the complete lack of support for any gun legislation. Unless the American voters are 100% behind stricter gun laws, our fearless senators can't do anything about it.
    24 Apr 2013, 09:20 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2499) | Send Message
     
    The bill isnt really even stricter laws, it just applies the law uniformly and closes the gun show loophole. Either way, law didn't pass, and the public does not care it didn't.
    24 Apr 2013, 09:53 PM Reply Like
  • zero1945
    , contributor
    Comments (142) | Send Message
     
    Don't need credit when you've got customers lined up outside the door.
    24 Apr 2013, 04:50 PM Reply Like
  • rgperrin
    , contributor
    Comments (664) | Send Message
     
    And pressure cookers are being pulled off the shelves, kids with NRA, Second-Amendment t-shirts are being expelled, airline passengers referring to sandwiches called "the bomb" (from, I guess, the "explosion" of flavors) are being detained by the authorities. Ah, America, what have you become?
    24 Apr 2013, 04:53 PM Reply Like
  • BruceInKY
    , contributor
    Comments (413) | Send Message
     
    If you're a shareholder and haven't voted your proxy yet it's not too difficult to tell which members of the board would have been for this meaningless Obama suck-up gesture.
    24 Apr 2013, 05:15 PM Reply Like
  • mobyss
    , contributor
    Comments (1880) | Send Message
     
    Buying a gun on credit is like buying a speedboat, luxury car, hot tub, TV, cruise, motorcycle, boob job, gold watch, or leather jacket on credit:

     

    IF YOU CAN'T PAY CASH YOU CAN'T AFFORD IT!
    24 Apr 2013, 05:16 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2499) | Send Message
     
    The gun shops have lines of credit, just like all businesses.
    24 Apr 2013, 05:44 PM Reply Like
  • RyanH
    , contributor
    Comments (126) | Send Message
     
    You are a moron.
    24 Apr 2013, 07:17 PM Reply Like
  • Cliff Hilton
    , contributor
    Comments (1493) | Send Message
     
    Thanks for the tip guys, I'll take my cash and troll gun shops for those that need a loan.
    24 Apr 2013, 05:41 PM Reply Like
  • dcraik
    , contributor
    Comments (10) | Send Message
     
    Gee, lets see now ...
    GE pays no taxes, gets govt. subsidy, Mr. Jeff is Obama's go to guy to help "create jobs" (even though he closed an American plant and moved it overseas) and now it's "news" that GE isn't going to lend $ to gun manufacturers?
    Couldn't have anything to do with the fact that Obama just had his ass handed to him on his big promise to "do everything in his power" to enact gun control ... could it?
    24 Apr 2013, 05:54 PM Reply Like
  • 481086
    , contributor
    Comments (3337) | Send Message
     
    the duck gets lamer (and more noxious) every day
    24 Apr 2013, 05:55 PM Reply Like
  • 'ol joe
    , contributor
    Comment (1) | Send Message
     
    GE thru Immelt is in Obama's backpocket .What else would you expect?
    24 Apr 2013, 06:21 PM Reply Like
  • snakebit78
    , contributor
    Comments (5) | Send Message
     
    I can not believe the ignorance of some of our over paid CEO'S
    24 Apr 2013, 06:23 PM Reply Like
  • doowopdrum
    , contributor
    Comments (2) | Send Message
     
    maybe a boycott of all GE products, like light bulbs, etc is called for here !
    Hit them hard financially, then they will see how playing "political correctness" is not what they think. A majority of the population doing a boycott would be impressive !
    24 Apr 2013, 06:24 PM Reply Like
  • convoluted
    , contributor
    Comments (1860) | Send Message
     
    I'm just as concerned as anybody about the level of violence in this country-but the gutless pc strategy is just as pathetic in its own way-and while we're at it some idiot county in Florida wants to kill a Beagle puppy because some kid stuck his face in range of the poor animal as it was eating-
    I hope I live long enough to see a monstrous backlash against this nation of jellyfish-
    24 Apr 2013, 06:32 PM Reply Like
  • dcraik
    , contributor
    Comments (10) | Send Message
     
    More on the move by GE was Just posted on The Truth about Guns.
    Interesting details ...
    http://bit.ly/10e1qDu
    24 Apr 2013, 07:10 PM Reply Like
  • mikeg999
    , contributor
    Comments (68) | Send Message
     
    Nothing unusual about this. Most banks and non-banks (GE Capital) follow credit policies that pass on loans for gaming (casinos) and other borrowers that are viewed as not worth the public "noise". There are others that target (pun) these markets because they offer reasonable risk/reward. In the end, GE can follow its own policies and represent the interests of its constituents by not making loans to gun shops.
    24 Apr 2013, 09:26 PM Reply Like
  • Randy Sommovilla
    , contributor
    Comments (32) | Send Message
     
    Immelt is a politically correct sycophant. If he paid more attention to growing the business, maybe I'd get back to even on my GE holdings.
    24 Apr 2013, 10:40 PM Reply Like
  • chriff
    , contributor
    Comments (83) | Send Message
     
    I for one am glad when companies take the positive step forward that our government just refuses to.

     

    As on alternative energy and better internet infrastructure, leave it up to the private sector to figure out things that the federal government can't because it is in the grip of people who apparently really like to post on this website.
    24 Apr 2013, 11:01 PM Reply Like
  • Gunnytom
    , contributor
    Comment (1) | Send Message
     
    GE Finance can't help out there own divisions that make the Gatling type weapons that are on most tactical aircraft such as the F-15, F-16 F/A-18, A-10, AH-1, patrol boats and APCs. They also have contracts for jet engines and other high end items. They are definitely in Obama pocket
    24 Apr 2013, 11:35 PM Reply Like
  • mobyss
    , contributor
    Comments (1880) | Send Message
     
    Gun sales are through the roof. Losing a few penniless dreamers who can't come up with a few hundred bucks for a gun will have absolutely no impact on the manufacture and sale of firearms.
    25 Apr 2013, 12:41 AM Reply Like
  • gap123
    , contributor
    Comments (176) | Send Message
     
    I whole heartedly agree with you on buying with cash; however, GE offers many different lines of credit through GECapital, to many different retailers. It is important for GE shareholders to note this move, in that it appears as GE seems more concerned with Politicking an issue rather than capitalize. One of the reasons I sold my GE shares long ago. Second, I utilize several of my GE lines of credit because they offer 6, 12 and sometimes 24 months interest free, or Same As Cash. Why wouldnt I use someone elses cash to buy a rifle, set of tires, service on the car, TV,dental services or lasik, etc? Seems pretty smart.

     

    But yes, this whole issue is rather silly.

     

    If GE really had any conscience or social morality, maybe they could pay some corporate taxes?!?! gee, I crack myself up!!!
    25 Apr 2013, 12:55 AM Reply Like
  • joblock
    , contributor
    Comments (10) | Send Message
     
    I don't know how GE does in other business segments, but were I work, Hydril used to be the pressure control systems king in the oil field. Then GE bought them. Since then, NOV has tripled its business in pressure control and Cameron has doubled its business. No one talks about Hydril anymore. GE ran them into the ground.
    25 Apr 2013, 04:01 AM Reply Like
  • kcadieux
    , contributor
    Comment (1) | Send Message
     
    Well that's about the worst business decision I ever heard of. Another smarter less political company will hopefully take full advantage of this blunder.
    25 Apr 2013, 04:02 AM Reply Like
  • val hunter
    , contributor
    Comments (8) | Send Message
     
    Three cheers for GE! I f I could I would terminate all sales of military-type weapons immediately. Only idiots want to strut around with them. By the way, Wayne Lapiere(?) is a slug (pun intended).
    25 Apr 2013, 04:03 AM Reply Like
  • User 56858
    , contributor
    Comments (2) | Send Message
     
    I guess it depends on your goal! normally money is loaned with the expectation of earning a profit. Gunshops are definitely earning money, it is difficult to find a variety of guns these days not to mention ammunition for them. Jeffy's decision is apparently, like Obamas, based on feel good, no substance, actions
    25 Apr 2013, 04:04 AM Reply Like
  • llange52
    , contributor
    Comments (8) | Send Message
     
    GE is a sorry excuse for a company.....and I avoid buying anything made by them when I can.
    25 Apr 2013, 04:06 AM Reply Like
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