Wall Street’s Reaction To Obama.

Old Fuff · Jan 16, 2013

Wall Street investors usually don’t care about guns. They’re in the game to make money, and they pick and choose those company’s they expect them to produce the best returns. So this article, posted by USA TODAY shortly after Obama’s anouncement that he and his administration would push for stronger gun control laws and institute a number of Execative Orders to do the same, is especially interesting.

Obama calls for new controls; gun stocks jump

Matt Krantz, USA TODAY1:49p.m. EST January 16, 2013

Shares of gun-related companies soared Wednesday as President Obama revealed his plans for the most comprehensive set of gun-control proposals in 20 years.

So the reaction in the New York Stock Market is:

The proposals triggered a rally in shares of gun makers Smith & Wesson (SWHC) and Sturm Ruger (RGR), which both initially jumped more than 4% and were up 3.2% and 3.6% in afternoon trading. Shares of gun retailer Cabela's (CAB) rose 5.9%.

Why? Well it seems like:

Gun sales have been strong for months, and ammunition has been in short supply, as gun buyers stock up on fears that weaponry will be harder to obtain if Obama uses executive orders to enact stronger controls…

But there is a fly in the oitment. For the president and his backers all is not well. It seems that:

Many federal and state lawmakers have said they would vote against stricter controls.

So from an investment perspective it’s time to go for the gold.

Keep in mind that this is from New York City, where the legislature just passed a very restrictive package of gun control laws – which obviously didn’t have a negative affect on firearms related company’s stock values.

Link to article:

http://www.usatoday.com/story/money/markets/2013/01/16/obama-gun-control-gun-stocks/1839653/

winterhorse290 · Jan 16, 2013

i have already purchased more than i,ll think i,ll need. would have liked to have more mags, but i have enough. i can,t imagine trying to build up you stash right now. and there is every reason to believe that this "stuff" will pass and guns, mags, and ammo will go back to normal within a year. if not, DAMN i made a good investment!!

Double Naught Spy · Jan 16, 2013

The problem with Wall Street reactions is that such reactions don't say anything about the viability or longevity of the companies. They are an emotional response to the news that may be more for the Shorts than for the Longs. The reporting does appear to be quite accurate and there were some marketed changes in price right at the time of the news conference with S&W showing a lot more volatility than Ruger overall.

Hacker15E · Jan 16, 2013

Old Fuff said:
So from an investment perspective it’s time to go for the gold.

Actually the time to get in on RGR and SWHC long (buy and hold) has long since passed.

JERRY · Jan 16, 2013

until the market get below 10,000 and stays there for a while nobody in the national media will comment negatively about obama's economic policies.

Nickel Plated · Jan 16, 2013

Looks like many of NYC's pension funds are actually invested in various firearms companies. The Public Advocate Bill DeBasio is calling for them to divest from the companies. I guess people's pension funds don't matter as much as his own little political grand standing.
Never mind that firearms manufacturers seem to be the only ones actually doing well in this economy. No, we'll just toss all that cash in order to make a statement about.... something.

http://www.metro.us/newyork/local/article/1159718--city-officials-call-for-divestment-from-gun-companies

PS: It's also funny how he claims that single shot muzzle-loaders are the only ones that the 2A was meant to protect. And even THOSE are pretty much illegal in NYC. (You can buy the gun with no regulation much like the rest of the country, but if you have the ammunition necessary to fire it, then it's a firearm and must be registered just like any other regular gun)

saltydog452 · Jan 16, 2013

Fuff,

Good to see you again. Thanks.

sd.

Wall Street’s Reaction To Obama.

Old Fuff

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winterhorse290

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Double Naught Spy

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Hacker15E

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JERRY

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Nickel Plated

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saltydog452

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