Smith & Wesson, Ruger shares explode
Filed under: Company News
Wall Street pundits often talk about the resiliency of stocks such as McDonald's Corp. (MCD) and Wal-Mart Stores Inc. (WMT). Shares of Smith & Wesson Holding Corp. (SWHC) and Sturm, Ruger & Co. (RGR), the two publicly traded gunmakers, have vastly outperformed them both.
Smith & Wesson, one of the iconic names in American weapons making, is up more than 112 percent this year in the wake of its recent strong earnings report. Strum, Ruger, maker of Ruger firearms, is up more than 60 percent. A spokesman for Smith & Wesson did not return phone calls. David Renken, Strum, Ruger's manager of corporate finance, referred a reporter to the company's SEC filings and urged him to "draw your own conclusions" about the company's sales. The company's fourth quarter firearm sales soared 42 percent.
The stocks' rise comes as Americans purchase guns in record numbers, even as they deny themselves everything from medical procedures to buying cars because of worries about the economy.
Data from the FBI's National Instant Criminal Background Check System (NICS) show that background checks for firearm sales rose 23.3 percent. Background checks -- a proxy for gun sales -- have risen at a double-digit rate since the election of Barack Obama in November. Some law enforcement officials and gun-control advocates say they are worried that the rising sales may lead to increased violent crime. The National Rifle Association and its allies have traditionally rejected those arguments.
Both pro- and anti-gun control groups argue the reason for the increased sales is simple: some gun owners were worried that an Obama administration would either confiscate guns or tax them at such a high level to make owning them unaffordable. This makes for brisk business for gun dealers, even on a Monday morning as worries about rising crime further motivate people to seek self-protection. Some gun buyers may even be facing shortages.
"It's a perfect storm," said Frank Briganti, director of research for National Shooting Sports Federation, in an interview.
Exactly how long the increased gun sales will last is difficult to say. The rate of increase from NICS is slowing but the data does not include all sales of weapons. Buying guns is also not an economic decision, though they are not cheap. In fact, officials figure that many of the sales are going to people who already own weapons, raising fears of weapons stockpiling.
Ladd Everitt of the Coalition to Stop Hand Gun Violence said his group is concerned that many of the recent purchases are for assault weapons being purchased by militant gun enthusiasts with "insurrectionist beliefs about the second amendment . . . I don't think its soccer moms going out there and buying AK-47s."
Police officials, such as Upper Darby, Pennsylvania, Superintendent Michael Chitwood, have long argued that there are too many guns on the street. In an interview, Chitwood said he was "absolutely" worried about the increased sales. His officers will find caches of 15 to 20 weapons in domestic violence calls or on drug arrests."
But before people worry about a return of the Wild West, Daniel Vice, senior attorney for Brady Center to Prevent Gun Violence, points out that gun ownership is at its lowest level in 25 years.
"Typically we have seen people buying additional guns because of the gun industry marketing it as now is the time to buy guns," he said.
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Reader Comments (Page 1 of 2)
3-17-2009 @ 4:39PM
Soccer Mom said...
You bet it is SoccerMoms buying firearms!
The majority of people who own firearms are law abiding , non-violent , responsible people. For you to suggest that increased gun sales can in any way increase crime is ignorant.
I am a stay at home mom who understands her rights. I also have seen my rights slowly being striped away - the 2nd Amendment was created with non-military persons in mind. Not only to protect themselves but to form a militia when needed. It is our right to oppose any government that wants to have more control than they should. The infringement on our rights has already begun.
The rise in gun sales is a reflection of law abiding citizens who understand that someday- the government will make it almost impossible for us to attain fire arms.
I for one am buying them while I can.
America is the land of the free. I will defend that freedom against any government who wants to take it away from me or my family.
Amendment 2
A well regulated Militia, being neccessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed.
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3-17-2009 @ 5:11PM
wanderer said...
Since Texas passed the law where you can get papers to carry, car jackings have gone down!
Evern now and then you see sticker "Do I have a gun or not?"
The stupid Mayor of NYC trying to sue the gun mfg for making the guns that kill.
Cars do not kill people it it the people behind the wheel. The difference the gun is picked up when you need it, (to practice or use in defense) The bullet weighs only a few onces!
The car or truck is a multi-ton bullet that can go out of control at any time!
One bullet is for one person! One car/truck/bus kill many!
We kill more people with automobiles that all the deaths
and injuries of total war in Iraq (IN JUST 1 YEAR)
Yet we let drunk driver off! If I walked down the street waving a gun and shooting in the air guess where I would go
on lst conviction!
An illegal alien without proper papers and no insurance
driving in our busy roads is a hell of lot more liable to kill than my gun's! Especially if they are drunk!
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3-17-2009 @ 9:16PM
just me said...
An illegal with no license, and drunk killed and friend of mine while driving drunk, funny how nobody I know has ever been a victim of gun violence.
3-17-2009 @ 5:10PM
jodie said...
there is a big push to do away with the 1st amendment right now the people in control do not want you to know the truth in any type of media and they will try to stop us from getting it,the gun anti,s live in a fairytale world and will do anything they can to to destroy our country and the american way of life,these people think with only one side of thier brain and that is the very far left (socialist side )that will let the government run all aspescts of their lives.we have gun control laws but the courts do not use them,we do not need more we need the ones now put to use.they on thier way to trashing our country and we will see more of it in the next 4 years. god bless america and all of our fallen heros that kept us from being english, jap, and german.
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3-17-2009 @ 5:55PM
drewbob said...
This article shows you how liberal the media is....only the gun control side. There was nothing mentioned about the effect of increased crime after gun control. Criminals will never register their guns and the government will never collect all the guns criminals own or can get their hands on. This leaves the law-abiding citizens open for assault. Just look what prohibition did to beer sales in the Depression, have I made my point?
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3-17-2009 @ 7:32PM
richiethesaint said...
Gun sales are up because Americans are no fools. The economy is tanking, and we are taking preventive measures. I myself have stockpiled firearms, ammo, canned goods and bottled water. If Obama, Pelosi, Frank, and Co. finish running the counrty into the ground with trillions more in bailouts for the irresponsible, reckless, and criminal. We need to be ready. Democrats, Republicans were complicit with failed economic policy, and it is time citizens take a positive action to protect themselves. Remember gun sales are always highest when there is trouble in the air!
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3-17-2009 @ 7:50PM
j naylor said...
So, the gun-control advocates surmise that increased purchases of guns will lead to more violent crime? No proof of that at all. Most new purchases are from freedom loving, regular Americans who see their Constitutional rights threatened by this leftest administration and the their willing accomplises in the left-leaning media. Individuals have the right to defend themselves from an ever intrusive federal government that forgets who they work for.
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3-17-2009 @ 9:25PM
DANIEL said...
WE ARE HEADING TOWARD A DEPRESSION---CRIMES WILL INCREASE DRASTICALLY--THE POLICE WILL BE UNABLE TO PROTECT YOU. GET A GUN FOR YOUR PROTECTION.
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3-17-2009 @ 9:15PM
paul said...
if anyone wants a better understanding of where we are headed as a nation, check out this video, at wimp.com titled democray vs. republic. it describes the fall of the roman empire, because of corruption, and overblown social programs. a free republic, based on the ability to produce and keep their profits, became saddled by increased taxes, and government regulation. the country fell into a state of anarchy, and the ensuing chaos lead to the progression of oligarch's(caesars) a powerful few aristocrats who controlled everything. those who do not study history are doomed to repeat it. i hope we wise up before it's too late. in the mean time, stock up on ammo while you can still afford it.
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3-18-2009 @ 7:48AM
Tom said...
If someone breaks into my house and I am at home my neighbors won't have to worry about the same person or persons breaking into their house.
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3-17-2009 @ 10:31PM
tt51 said...
who ever is buying all ak-47s and all need 2 frag all the higher up's at aig giving valuable employees a mill bonus checks while the rest of us barely survive ffs
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3-17-2009 @ 9:46PM
dave said...
daniel is right ! in new bedford mass they just laid off 34
patrolmen/women. and the latest story in the local paper states the remaining cops are worried about increasing crime. what they didn't say is the remaining cops are the pencil pushes who haven't see the beat in years, and don't intend to.
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3-17-2009 @ 10:19PM
mfwil said...
I'm 67, live alone in a neighborhood that has gone to the minorities and now a minimum wage neighborhood. Nothing wrong with that BUT now I notice women hookers, men standing on street corners, and since I am part of Crime Watch, I report it to the police, but they can only do so much...they can't be everywhere, and these brilliant City Mayors are cutting back on police; don't notice them taking a paycut though.Just plain stupidity. Don't you think the criminal minded know I am alone, defenseless and an old woman, that's who they attack? The helpless, defenseless... I'm going to buy a 38 and going to learn how to use it to protect myself.
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3-17-2009 @ 10:53PM
billp37 said...
S&W honors warranty work and is fun to deal with.
http://www.prosefights.org/msd/wildhorsemesa/wildhorsemesa.htm
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3-18-2009 @ 12:06AM
jerry mcdonald said...
you only need to look at england, little e,to find out what is coming here.What we need is for our government to allow more muslims in here.Lower crime rate, i think not.Poor old ozzie been robbed twice,but you better not mess with his old lady.Vests,guns,and bullets the main stay of our military.We do know how to start wars and violence, we just can't win any wars.
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3-18-2009 @ 12:56AM
Jay said...
Paranoid nuts, calm down people.
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3-18-2009 @ 2:55AM
Kim said...
mfwil said...
I'm 67, live alone in a neighborhood that has gone to the minorities and now a minimum wage neighborhood. Nothing wrong with that BUT now I notice women hookers, men standing on street corners, and since I am part of Crime Watch, I report it to the police, but they can only do so much...they can't be everywhere, and these brilliant City Mayors are cutting back on police; don't notice them taking a paycut though.Just plain stupidity. Don't you think the criminal minded know I am alone, defenseless and an old woman, that's who they attack? The helpless, defenseless... I'm going to buy a 38 and going to learn how to use it to protect myself. ---------i'M NOT TRYING TO BE FUNNY. BUT I WOULD RECOMMEND A SHOTGUN FOR YOU. NOT A HAND GUN. DO YOUR REASEARCH AND YOU WILL UNDERSTAN WHY. GOD BLESS AND BE SAFE.
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3-18-2009 @ 2:59AM
Kim said...
DANIEL said...
WE ARE HEADING TOWARD A DEPRESSION---CRIMES WILL INCREASE DRASTICALLY--THE POLICE WILL BE UNABLE TO PROTECT YOU. GET A GUN FOR YOUR PROTECTION.-----------There is no doubt that you are right.... I can not see how a normal person can stand by and see his family starve when his neighbor thrives.... Bad times a head for sure.... Even for good people
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3-18-2009 @ 4:30AM
Bruce Calabrese said...
The media and the liberals just don't get it. Obama being elected and gun taxes have almost nothing to do with the increase in gun purchases. Obama's sudden insane radical agenda, combined with the outright mentally ill people in Congress right now like Pelosi, Reed, Dodd, Frank, Kennedy, and Schumer are causing the outrage. It is the attack on the Constitution that is the problem. We, as Americans, are sworn to protect and defend the constitution. We just want to make sure we have something powerful to defend it with.
The Republicans seemed to have abandoned their posts in the past few years and the Democrats are destroying the constitution daily. The American people are speaking with each and every gun purchase. Votes don't seem to work anymore as that process is now rigged. Example: How's that Senate race going in Minnesota lately?
The Press with the exception of Fox and maybe CNN is now a wing of the radical Democrat party. Guns are what you turn to when you feel there is no longer a voice in Congress or the Media defending the Constitution. It is that simple. Our President never voted for anything before or ran anything before. I honestly think the American people were willing to try to get to know the guy. Then a month ago, he delivers the communist manifesto as his budget and embarks on this wild, radical agenda in the middle of a self inflicted economic crisis and and the American people are left out in the cold. We are speaking loud and clear with each and every gun purchase.
As for gun violence, I certainly feel a lot safer in a crowded area knowing that several good guys are carrying concealed weapons and I think the bad guys are slowing realizing it.
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3-18-2009 @ 10:44AM
TX CHL Instructor said...
Kim: Yes, a shotgun is a better home defense weapon than a handgun -- but you need to practice with it. A 12-gauge buckshot round will punish you even if you are holding it correctly, and can injure you badly if you aren't holding it correctly -- bad enough that you might not be able to get off a second shot if needed. In a home-defense situation, you are going to be rushed and under stress, and very likely to use an incorrect hold, especially if you don't practice regularly. If you have any problems with the recoil of a pump shotgun, and you can't afford a recoil-compensated semiauto, you should load your shotgun with full-charge (6drm) blanks. Blanks can be lethal at home-defense ranges, have about 1/4 the recoil kick, 4 times the noise, and won't over-penetrate & injure your neighbors.
Jay: Gun control is not about guns. It's about Control.
--
http://www.chl-tx.com -- Thanks to the Empty Suit from Chicago with the Blank Resume, my business is booming.
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