Should you buy stock in gun companies? (Top market analyst makes predictions... growing unrest)

WND.com ^ | October 23, 2012 | Mark Leibovit

[Perseverando]

With all of the violence unfolding around the world – from the Colorado movie theater massacre to civil unrest in Europe and war the Middle East – it is a fact that many people today are taking notice and arming themselves to protect themselves and their families.

Indeed, the Second Amendment to the U.S. Constitution was put there for three important reasons: 1) safety against criminal elements, 2) national security – our Founding Fathers did not trust a standing army, and 3) as an insurance policy against our own government, to keep it in check.

And despite calls for more gun control by some misguided lawmakers, “the people” are taking matters into their own hands – literally – instead of relying on bureaucrats and statutes and even police to defend their property and their lives. Likewise, if the Federal Reserve continues printing money to prop up our struggling and deteriorating economy, civil unrest is not out of the realm of possibility right here in the United States.

So, why is a veteran market analyst talking about guns?

Gun stocks. And by “stock,” I don’t mean the part of the gun that goes against your shoulder. I mean buying shares in companies that manufacture firearms.

Although sales of guns and ammunition are high (many fear the worst should Obama be reelected), it is not likely that the party is over for the gun stocks after the election, regardless of outcome, since the economy isn’t changing.

In the better areas of the country, people are coming up to gas stations and begging or asking for money. In the areas that are not doing as well, they are coming up to people and either robbing them at gunpoint or even shooting some victims. People don’t have a choice but to protect themselves.

[refermech]

Yes, Bread, bullion, bullets and booze would be a good strategy. I call it the 4 bees!

[KeyLargo]

May not be a good recommendation if Obama is re elected and together with the UN puts the gun makers out of business.

[Biggirl]

Which will NOT happen, considering the increased likelyhood Romney IS GOING to WIN.

[SJSAMPLE]

If things get really bad, would you rather have their stock, or their products?

Just sayin'.

[Perseverando]

How about beans, bullets, bandaids and bottled water?

[refermech]

That sounds good too. I was more talking about investment opportunities in companies that make the 4 bees.

[Pining_4_TX]

Sounds good to me! I would add peanut butter, canned tuna, and dog food for our first line of defenders. ;-)

I do not agree that being poor turns a person into a criminal, though. Crime is increasing now because we have a set of people who feel they are entitled to take what they want from others. Good advice is to move away from cities... way away from cities.

[Dr. Thorne]

Instead of stock, I bought insurance from Remington, Winchester, Glock, Federal, Barnes, Hornady...

[lurk]

Most domestic arms companies are running at capacity right now.

Even if Romney wins, they’ll likely stay brisk.

If O wins, they’ll have to expand and go to 24 hr operations to keep up.

[Red in Blue PA]

RGR has ~$100 M in cash and no debt.....add to that a dividend of 3.3%. I own their guns and the stock. A no brainer IMO.

[Red in Blue PA]

RGR has ~$100 M in cash and no debt.....add to that a dividend of 3.3%. I own their guns and the stock. A no brainer IMO.

[ExCTCitizen]

There’s only 2 publicly held companies -— Strum Ruger and Smith & Wesson. (Both I have. Strum Ruger also makes castings for golf clubs)

[aimhigh]

I also own Ruger stock, and have made money on it. When a limp wristed analyst writes bad things and forces the stock down, I buy. And it always springs back due to having great fundamentals, and good products. The market has gone south this week due to poor earnings reports. RGR will be releasing its earnings report on the 31st, and it will be wonderful. The worse the economy gets, the more guns are sold.

[Red in Blue PA]

Another great LT growth story is CAB......they own their own credit card instead of outsourcing it to a NYC bank. A retail company which is part bank. Not to mention the fact that they can bankroll much of their expansion with their free cash flow. A truly phenomenal company and stock for the long haul.

Also own OLN......they make Winchester ammo.

And GNRC......another great growth story.

And for those who say we are peaking in gun sales, I am a firm believer that the growth in gun sales is part of a longer term secular uptrend, caused by all of the new gun owners (read: women). But don’t expect to hear this from Wall Streeters who cover these companies yet have probably never fired a gun in their life.