Obama helped Ruger stock rise over 400%

[usmarine0352_2005]

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http://www.msnbc.msn.com/id/44375021/ns/business-us_business/#.TmVBg47cxPw

Why the gun industry secretly loves Obama - Sales of firearms have surged since he took office

By Joshua Green

updated 9/5/2011 11:25:14 AM ET


Ruger has done especially well. Since Obama’s inauguration the company’s stock price has risen more than 400 percent, making it a better investment than gold, which is up 113 percent. “They’ve been outstanding in offering new products, especially in the concealable handgun segment,” says Jim Barrett, an analyst at CL King who tracks the gun industry and rates the company a “strong buy.”

Cliff:

Even as the industry pumps money into the National Rifle Association, which is intent upon defeating Obama, some gunmakers wonder if these fears — and the sales they generate — will dry up if a gun-friendly Republican like Perry wins the White House. Sturm, Ruger & Co. CEO Michael O. Fifer alluded to this concern in a July sales call. “I think half of the people in the firearms industry, if asked, would hope [Obama] is not President, but then will secretly go out and vote for him again,” Fifer said.

Very interesting. I wonder if gun sales would drop if Perry or another pro-2nd Amendment president was elected.


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[Last Knight]

And people say Obama is bad for the economy. HA!

Seriously, the Great Gun Craze of the past few years - while no doubt wonderful for the industry - has made things very rough for a lot of individual shooters, as prices on ammunition and common firearms (like Evil Black Rifles) have skyrocketed. It's nice to see things are coming back down again, but if Obama wins reelection I wouldn't be surprised if we see a second panic - after all, it's not like he has to worry about getting reelected once he's on his second term.

The election of a pro-2nd Amendment president might help calm the market a bit, but as long as the economy remains rough people are going to continue buying guns to ease their minds.

 

[blue_ridge]

Right before the Debt Crisis I sold some stocks that I knew would drop like rocks after the crisis. I bought gold, through a gold ETF and Ruger. I'm up about 35% on those two picks. if I had kept my stocks as they were, the debt crisis would have cost me 10-15%. When idiots run the country, gold and guns are good place to go with your money. (silver too)

 

[BCCL]

I can remember the same craze when Clinton got elected, but even it was no where near as wild as it was after the 2008 election.

 

[ZeroJunk]

Although Ruger has done very well and hit it's all time highs recently I wouldn't make a big deal out of the political causality. A lot of other stocks have done the same thing that are not firearm related. McDonalds for instance. And, some stocks are up much more in the same time frame. Ford for instance.

 

[rbernie]

We don't do politics nor corporate finance on THR. If this thread had left out either as a central theme, it might just still be open.