I gota wonder if the climbing gun stocks trend may be coming to an end.
I analyzed the financials of Smith and Wesson last year. S&W stocks had risen dramatically over the past several years and the improvement in their position is 100% attributable to Obama. Smith and Wesson executives actually admitted such in their 10K report of 2011, page 20, item 1A filed on 6/30/2011.
“Political and other factors also can affect our performance. For example, we experienced strong consumer demand for our handguns and modern sporting rifle products beginning in our third fiscal quarter ended January 31, 2009, following a new administration taking office in Washington, D.C., speculation surrounding increased gun control…….”
I also analyzed their balance sheets from 2006 through 2010, inclusive. A good barometer of their liquidity is their cash and cash equivalents. (The figures are in millions of dollars.) In 2006 C&CE totaled $731,000. That’s not good for a corporation the size of S&W. Heading into the election in 2007, the panic was already starting and their C&CE jumped to $4,065,000. 2008 it’s still increasing to $4,359,000. In 2009, C&CE skyrocketed to $39,822,000. The figure remained roughly the same for 2010.
Not to sound morbid, but if Obama gets re-elected, I predict in his second term he will show his anti-gun side which will create tremendous demand for firearms. Gun company stocks will (I’m guessing) go through the roof. It doesn't have to do with market saturation. It has to do with the public's perception of the future.
However, given the history of the Republican candidate’s position on guns, he might have a similar impact on the gun buying public. Neither candidate is a friend of gun owners which makes both candidates good for gun companies.
That’s the morbid part.
Now if somehow we managed to elect a staunch supporter of the 2nd Amendment and gun owners relaxed, it could be a different story.