ATK's Big Buyout Misses the Mark

Five months after the Sandy Hook shootings sent Wall Street scrambling away from anything having anything to do with guns, investors are starting to return to the sector. Last week, ATK announced a deal to buy Savage Arms owner Caliber Co. for $315 million cash.

But issues of gun control and gun regulation aside, is this a good deal for ATK shareholders? contributor Rich Smith doesn't think so. Among gun companies, he thinks either Smith & Wesson or Sturm, Ruger are better bargains. And in ATK's case, there's a good case to be made against buying any gun companies at all...

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Motley Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Sturm, Ruger & Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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