Gun Control Stocks Back in Focus Thursday and Friday
Vice President Joe Biden has been given with the task of reaching some form of aggressive gun control after the Newtown massacre. President Obama put him in charge of the effort as this is not exactly Biden's first time around the block on gun control law. What the public has been concerned about is what sort of gun control legislation will come down the pipe. On Thursday or Friday we should have at least some idea what sort of gun control proposals will really be coming.
If you have been to a gun store in America, you probably could not have missed that the available supply of heavy arms like the assault weapons are out of stock completely. Also out of stock are the magazines for those guns and almost all of the ammunition for these guns.
Wal-Mart Stores Inc. (NYSE: WMT) reportedly flip-flopped on whether or not it was going to send a representative, but it will be a part of the discussions. Wal-Mart is often referred to as the largest retailer of guns and its shares closed down only 2-cents at $68.57. Keep in mind that Wal-Mart could sell twice the guns and ammo or half the guns and ammo and it would not likely change its sales structure by much. Here is how the other gun stocks fared on Wednesday:
Smith & Wesson Holding Corporation (NASDAQ: SWHC) closed down 2.25 at $8.57 and Sturm, Ruger & Co. Inc. (NYSE: RGR) closed down 0.8% at $48.54.
Alliant Techsystems Inc. (NYSE: ATK) has more demand than it can handle for bullets now and the defense contractor is the largest maker of ammunition for sport shooting and law enforcement in America. Its shares closed up 2.6% at $64.98.
Olin Corp. (NYSE: OLN) is known for its Winchester ammunition sales but that is not the bulk of its business; its shares closed up 0.8% at $22.41.
Dick's Sporting Goods Inc. (NYSE: DKS) closed down 2.1% at $46.41 and Cabela's Inc. (NYSE: CAB) closed down 1% at $44.01 today.
Whatever is coming, gun enthusiasts, the public, and investors all know that "something" is coming down the pipe. As far as how wide the net will be cast is still up for debate. Our take is that whatever is proposed as far as the actual bill it is what Vice President Biden and President Obama feel that they can get passed through Congress.
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