News Column

Obama Win Fires Up Stock of Gunmakers

November 8, 2012

Jessica Van Sack

There was one group of stocks doing well because of President Obama's win: gunmakers. Springfield's Smith & Wesson Holding Corp. had its biggest jump in months, rallying 10 percent to close the day at $10.37. Also doing well was Sturm Ruger & Co, which rose nearly 7 percent to $47.68. Both companies manufacture handguns and semiautomatic weapons. After years of failing to take on gun control, Obama signaled last month he would consider banning civilian purchases of military-style rifles.

"While we maintain our view that these political sales do not represent the entirety of recent firearms sales growth, we expect that with President Obama's re-election these sales could continue well into his second term," Mike Greene, analyst at Benchmark, wrote in a note to clients.

Gun owners have shown unprecedented concern that Obama is coming for their guns, with his election in 2008 triggering a run on gun sales. The National Rifle Association has played its own part in stoking fears, circulating a mailer headlined "10 reasons why Obama is bad news for the Second Amendment."

"We found no evidence of an Obama admission anything like the NRA suggests," wrote the watchdog Politifact.



Source: (c) 2012 the Boston Herald. Distributed by MCT Information Services