Did Sandy Hook Spell Doomsday for Smith & Wesson?
Dec 21st 2012 8:47PM
Updated Dec 21st 2012 8:50PM
In the wake of last week's shootings at Sandy Hook Elementary School, investors are selling off shares of gunmakers Smith & Wesson and Sturm, Ruger . Guns and ammo retailers aren't faring much better, as shares of sporting-goods chains Cabela's and Dick's continue to slide, while Wal-Mart -- long known among shooting enthusiasts for having some of the best prices on ammunition around -- are suffering as well.
With Congress moving swiftly to write new regulations for gun sales and ownership, this all seems a logical reaction to the headline news. Yet at the same time as investors rush to sell their shares, gun buyers are rushing to buy firearms -- before any new laws hit the books. Could it be that investors are missing a golden opportunity to "get greedy when others are fearful"?
Fool contributor Rich Smith thinks so, as he explains in today's video.
The article Did Sandy Hook Spell Doomsday for Smith & Wesson? originally appeared on Fool.com.Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Dick's Sporting Goods and Sturm, Ruger. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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