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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThese are bleak days for gun companies
http://money.cnn.com/2018/03/01/news/gun-stocks/index.html
Gunmakers are coming to grips with a new reality after Parkland.
The stock of American Outdoor Brands (AOBC), the owner of Smith & Wesson, tumbled 25% in February and is trading at its lowest level in almost five years. Sturm Ruger (RGR) fell 19% to a three-year low. Vista Outdoor (VSTO), which makes guns and ammunition, is down 12% since the school shooting two weeks ago.
Wall Street investors backing the companies are asking questions. More than a dozen companies have cut ties with the NRA. And Dick's Sporting Goods, Walmart and Fred Meyer, a unit of Kroger (KR), are limiting gun purchases from stores.
For gun manufacturers, declining stock prices reflect a change in a decade-long operating model.
As recently as the Las Vegas shooting last October, mass shootings provided a jolt to their stocks. Investors bet that Americans would rush to purchase weapons because of the prospect of tighter gun restrictions.
That was especially true before last year. President Obama and then Hillary Clinton, the favorite to win the White House in 2016, heightened gun owners' fears of new legislation and drove stock prices higher.
Obama was a "clarion call to the gun industry," said Brian Rafn, an analyst at Morgan Dempsey. Manufacturers doubled and tripled production during the Obama administration to meet rising demand, according to federal data.
But with President Trump in the White House and Republicans running Congress, the gun industry was left without a bogeyman. Mass shootings during the Trump presidency in Las Vegas and in Sutherland Springs, Texas, did not cause buying sprees.
Gunmakers are coming to grips with a new reality after Parkland.
The stock of American Outdoor Brands (AOBC), the owner of Smith & Wesson, tumbled 25% in February and is trading at its lowest level in almost five years. Sturm Ruger (RGR) fell 19% to a three-year low. Vista Outdoor (VSTO), which makes guns and ammunition, is down 12% since the school shooting two weeks ago.
Wall Street investors backing the companies are asking questions. More than a dozen companies have cut ties with the NRA. And Dick's Sporting Goods, Walmart and Fred Meyer, a unit of Kroger (KR), are limiting gun purchases from stores.
For gun manufacturers, declining stock prices reflect a change in a decade-long operating model.
As recently as the Las Vegas shooting last October, mass shootings provided a jolt to their stocks. Investors bet that Americans would rush to purchase weapons because of the prospect of tighter gun restrictions.
That was especially true before last year. President Obama and then Hillary Clinton, the favorite to win the White House in 2016, heightened gun owners' fears of new legislation and drove stock prices higher.
Obama was a "clarion call to the gun industry," said Brian Rafn, an analyst at Morgan Dempsey. Manufacturers doubled and tripled production during the Obama administration to meet rising demand, according to federal data.
But with President Trump in the White House and Republicans running Congress, the gun industry was left without a bogeyman. Mass shootings during the Trump presidency in Las Vegas and in Sutherland Springs, Texas, did not cause buying sprees.
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These are bleak days for gun companies (Original Post)
IronLionZion
Mar 2018
OP
SharonAnn
(13,767 posts)1. Good. I hope they all close their doors and imported guns are banned, too.
SoCalMusicLover
(3,194 posts)2. Why Doesn't The NRA Support Democrats?
Sounds like gun sales do far better under a Democratic Administration.
IronLionZion
(45,261 posts)3. That's the best part
They thrive on fear. They ramped up production expecting to have "Hillary's coming to get your guns" sales after every shooting. Trump has ruined it for them, and we might still get some reforms anyway.
flamin lib
(14,559 posts)4. Thoughts and prayers for them. nt
central scrutinizer
(11,617 posts)5. Explains the Orange Shitstain's call to confiscate weapons
Trying to jack up sales and stock prices