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Shares of Gun Makers Rise as Biden's Lead Over Trump Grow...
5 years ago
When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe. – Frederic Bastiat
At least Biden is helping one US business... Good work Joe
Shares of gun makers have been gaining ground as Democratic candidate Joe Biden leads polls, and if he wins the presidential election in November there are expectations of a renewed surge in gun sales that could drive shares even higher.
Shares of Smith & Wesson Brands and Sturm Ruger have both rallied around 8% since late September, mirroring Biden’s widening lead in the polls since his debate against President Donald Trump. The S&P 500 is up 4% in that period.
Fears about the coronavirus pandemic, civil unrest related to protests over racial justice and worries about a potentially disputed presidential election on Nov. 3 have created a surge in gun demand this year. Smith & Wesson CEO Mark Smith last month said the industry was unable to keep up with demand.
A victory by Biden and his vice presidential running mate Kamala Harris, who favor increased gun regulation, could further stoke demand for firearms - and shares of firearms makers - particularly if Democrats wrest control of the Senate from Republicans, giving them majorities in both houses of Congress and making it easier to approve legislation.
"Should we see a Biden-Harris administration get elected, I would anticipate a surge in sales of modern sporting rifles, high-capacity magazines and corresponding ammunition," said Aegis Capital analyst Rommel Dionisio, using an industry term for military-style rifles, a high-margin product category for firearm manufacturers.
An aggregation of betting odds by RealClearPolitics reflects a 65% chance Biden will defeat Trump, up from 55% before the Sept. 29 presidential debate.
Smith & Wesson's stock (SWBI) is up 135% this year, while Sturm Ruger (RGR) has gained 51%.
Shares of Sturm Ruger surged nearly 900% in the eight years from Democratic President Barack Obama's election victory in November 2008 to the November 2016 election, which Trump won. Sturm Ruger is up just 10% during Trump’s nearly years in office. During the same 2008 to 2016 period, the S&P 500 rose about 113%.
Biden has promised to prohibit the sale of military-style rifles and high-capacity magazines, similar to a 10-year ban that expired in 2004. He also promises to require owners of military-style weapons to either sell them to the government or register them with the government.
Shares of gun makers surged ahead of the 2016 election on expectations Democratic candidate Hilary Clinton would win. Trump's victory drove the industry into a two-year slump, with customers no longer worried they would lose access to firearms.
At least Biden is helping on part of the type of US business... Good work Joe!
Firearm sales surged anew in 2020 due to fears related to the pandemic, and following social unrest in several U.S. cities and calls to defund police departments.
Federal background checks, a proxy for firearm sales to U.S. consumers, in the first nine months of 2020 reached 28.8 million, even before the typically busy holiday shopping season, topping the record 28.4 million checks done in the 2019 full year.
First-time buyers made up 40% of gun sales in early 2020, compared to an average of 24% in recent years, according to a survey of gun shops by the National Shooting Sports Foundation, a trade association.
Even if Trump wins a second term and dispels expectations of gun control measures, the potential for renewed protests against across the deeply divided country could drive additional demand for handguns for self defense, Dionisio said.
© 2020 Thomson/Reuters. All rights reserved.
Shares of gun makers have been gaining ground as Democratic candidate Joe Biden leads polls, and if he wins the presidential election in November there are expectations of a renewed surge in gun sales that could drive shares even higher.
Shares of Smith & Wesson Brands and Sturm Ruger have both rallied around 8% since late September, mirroring Biden’s widening lead in the polls since his debate against President Donald Trump. The S&P 500 is up 4% in that period.
Fears about the coronavirus pandemic, civil unrest related to protests over racial justice and worries about a potentially disputed presidential election on Nov. 3 have created a surge in gun demand this year. Smith & Wesson CEO Mark Smith last month said the industry was unable to keep up with demand.
A victory by Biden and his vice presidential running mate Kamala Harris, who favor increased gun regulation, could further stoke demand for firearms - and shares of firearms makers - particularly if Democrats wrest control of the Senate from Republicans, giving them majorities in both houses of Congress and making it easier to approve legislation.
"Should we see a Biden-Harris administration get elected, I would anticipate a surge in sales of modern sporting rifles, high-capacity magazines and corresponding ammunition," said Aegis Capital analyst Rommel Dionisio, using an industry term for military-style rifles, a high-margin product category for firearm manufacturers.
An aggregation of betting odds by RealClearPolitics reflects a 65% chance Biden will defeat Trump, up from 55% before the Sept. 29 presidential debate.
Smith & Wesson's stock (SWBI) is up 135% this year, while Sturm Ruger (RGR) has gained 51%.
Shares of Sturm Ruger surged nearly 900% in the eight years from Democratic President Barack Obama's election victory in November 2008 to the November 2016 election, which Trump won. Sturm Ruger is up just 10% during Trump’s nearly years in office. During the same 2008 to 2016 period, the S&P 500 rose about 113%.
Biden has promised to prohibit the sale of military-style rifles and high-capacity magazines, similar to a 10-year ban that expired in 2004. He also promises to require owners of military-style weapons to either sell them to the government or register them with the government.
Shares of gun makers surged ahead of the 2016 election on expectations Democratic candidate Hilary Clinton would win. Trump's victory drove the industry into a two-year slump, with customers no longer worried they would lose access to firearms.
At least Biden is helping on part of the type of US business... Good work Joe!
Firearm sales surged anew in 2020 due to fears related to the pandemic, and following social unrest in several U.S. cities and calls to defund police departments.
Federal background checks, a proxy for firearm sales to U.S. consumers, in the first nine months of 2020 reached 28.8 million, even before the typically busy holiday shopping season, topping the record 28.4 million checks done in the 2019 full year.
First-time buyers made up 40% of gun sales in early 2020, compared to an average of 24% in recent years, according to a survey of gun shops by the National Shooting Sports Foundation, a trade association.
Even if Trump wins a second term and dispels expectations of gun control measures, the potential for renewed protests against across the deeply divided country could drive additional demand for handguns for self defense, Dionisio said.
© 2020 Thomson/Reuters. All rights reserved.
Because clearly Biden will give you so much to worry about.
When Govt. and the Judicial System lets domestic terrorists go back out into society w/o any semblance of investigation/punishment, yet actively pursues and destroys the lives of anyone that DARES use our Right(s), in this instance, the Second Amendment?
When we see two weeks of a shutdown expanded to how many months now? Our entire economy brought not to its knees, but now flat on its back, by an ignorant (and malignant) Govt./WHO/CDC/Judicial antics, who themselves don't seem to have to follow their own rules, and get away with it, but if a Citizen DARES try to work, visit the beach, observe a school sport, et al, be harassed and intimidated, assaulted and chained up then thrown in cages by our oh-so-intelligent and professional 'Law Enfarcement' (not a misspelling), and again Judicial System?
All of this (and many other topics), are the perfect ingredients for a steaming-hot BS cake, complete with Icing and Sprinkles.
The American People are (One can only hope?), finally waking-up to the reality of what's going on.
Many of them are terrified, and so we get our current firearm and ammunition apocalypse, which makes anything the former Presidents 'Bush', Clinton, AND Obama, seem trivial.
Govt. is not going to be there to protect anyone (except the Political/Judicial 'Royalty') when any kind of SHTF situation happens. We've witnessed this for decades now (Start with the Rodney King/L.A. riots, and move forward just for starters), and nothing has changed since. In fact, it's gotten far worse (innocent children being murdered while our Tax Payer Funded Law Enfarcement are granted a 'Free Pass: Do Not Put YOUR LIFE IN JEOPARDY TO STOP A MURDERER' by our SCOTUS?
Yeah, it's real, and it's been hitting the 'Fan' for a long time.
Now we're seeing the panorama all of it's painting on the wall.
Keep yer powder dry!
ty, Monty Python, you glorious maniac an' Crew!