Gun sales jump as Obama eyes restrictions

Business could not be better for the gun industry lately, and it's preparing for a tough fight against proposals the president laid out Wednesday.

By Kim Peterson Jan 16, 2013 2:45PM
Credit: Steve Marcus / Reuters
Caption: A man looks at Mossberg shotgun during the annual SHOT Show in Las Vegas
Image File Name: GunSales_011613_RM_300President Obama knows he's taking on a formidable opponent in the gun industry. It's well funded, vocal, intensely popular with many Americans and growing quickly.

Guns have become a huge business in America, and sales lately have been through the roof as enthusiasts worried their rights would be compromised. Gun stores report lines out the door and low supplies, and shoppers report examples of price gouging on high demand.

It's hard to pin down the number of guns sold lately, since gun makers don't report unit sales. And it's tough to rely on the number of FBI background checks, since a reported 40% of gun sales are made with no background check at all.

But you can look at the rising number of background checks lately as an indication of momentum, and that momentum appears very strong indeed. The FBI said its instant background check system processed 2.8 million requests last month, almost 1 million more than a year earlier. Some of the largest increases took place in New Hampshire, Rhode Island, Virginia, Oregon and Alaska, according to the Governing website.

Investors seem to have no worries about the gun industry. Shares of the two major gun makers were jumping Wednesday after Obama's call for sweeping gun control measures. The stock price of Smith & Wesson Holding Corp. (SWHC) rose more than 4% to $8.79. Shares of Sturm Ruger & Co. (RGR) rose 4% to $49.92.
Both stocks have seen significant growth over the last year. Shares of Smith & Wesson are up some 75% over that period, while Sturm Ruger has risen 25%.

Would investors be betting so heavily on a decelerating industry? Of course not, and Wall Street has thus sent its verdict to Obama: Your proposals are not happening.

The National Rifle Association came out swinging even before Obama unveiled a list of 23 executive actions he thinks will cut gun violence. At the NRAStandandFight website, the association unveiled a video Tuesday calling Obama an "elitist hypocrite" because his children are protected by armed guards.
The NRA said it has seen an "unprecedented" spike in membership numbers in the last month, CNN reports, with 250,000 people joining the 4.25 million existing members.

Obama recognized the battle ahead, and tried to appeal to Republicans in his speech by invoking former president Ronald Reagan, who supported a ban on assault weapons in 1994. That ban expired in 2004 and was never renewed.

Obama said that implementing his proposals will be difficult. He added that pundits, lawmakers and lobbyists will warn Americans of a "tyrannical all-out assault on liberty" in order to gin up fear or higher ratings or more revenue.

"The only way we can change is if the American people demand it," he said, urging people to call their Congressional lawmakers. "Along with our freedom to live our lives as we will comes an obligation to allow others to do the same. We don't live in isolation. We live in a society."

The NRA, for its part, is promising to give Obama "the fight of the century," according to the Washington Post. In a fund-raising letter to the group's members, association executive Wayne LaPierre had this to say: "It's not about protecting your children. It's not about stopping crime. It's about banning your guns. . . PERIOD!"

More on Money Now



294Comments
Jan 16, 2013 4:29PM
avatar

how they going to do it,all hend guns with over 10 in a magazine and there is millions of those guns ,what we going to do with them,,turn them in  or what

 

Jan 16, 2013 4:23PM
avatar
I wonder how much Hidden stuff is in this !
Jan 16, 2013 4:22PM
avatar
they missing the point that every spree killing is committed by people with mental illness,find the gad demn way to block those people from owning any kind the weapon and problem solved
Jan 16, 2013 4:20PM
avatar
Obuma has helped sell more guns than fast and furious !
Jan 16, 2013 4:20PM
avatar

yeah....I am pretty sure criminals prefer unarmed victims!

 

I, for one, will be happy to protect myself and loved ones.

If you are legally able to get a concealed carry permit and dont....what could you possibly be waiting for????

 

Vet, lifetime NRA member, CCW for many years.  I will not be an easy victim.

Jan 16, 2013 4:20PM
avatar
never really had much interest in owning a "so-called" assault rifle before, but now that there is all this hoopla going on about them, I am going to start checking the gunshows (while they are still around) and looking at the online advertisements from the gun stores around me...
Jan 16, 2013 4:17PM
avatar
He can't ban the will of the American people.  We will overcome!
Jan 16, 2013 4:17PM
avatar
what was obama's response to the fort hood shooting? downplayed as work place violence instead of a terrorist attack.
Jan 16, 2013 4:16PM
avatar
How come every time Obama "unveils" something it cost us a fortune and the hiring of new Federal employees? ....  Please "unveil" us some spending cuts for once!
Jan 16, 2013 4:14PM
avatar
I wonder if next week Obama will be sworn in using a different set of words - he obviously can't with a straight face say he will uphold the Constitution since he did not today. 
Jan 16, 2013 4:13PM
avatar

Exercise your second ammendment rights please!!!  You can have an assault rifle, 4 years of training, with pay, room and board on the public dime during that time!   Just enlist and then maybe the NRA and owning these things may not be so alluring!  While you're at it tell your kids that too!

Jan 16, 2013 4:13PM
avatar
I wonder who is running his string's?????   Can't you see his mouth and the words don't match??????? If congress pass's this bill THEY ALL WILL BE LOOKING FOR A NEW JOB COME NEXT ELECTION.......
Jan 16, 2013 4:12PM
avatar
This is what happens when you let an idiot such as Biden loose.  I am an advocate for 100% background checks for sale of weapons by dealers to ANYONE as well as imposing personal accountability measures to include imprisonment for ANY individual that sells or exchanges or gives their weapons to anyone other than authorized dealers.  But this is where I stop - the majority of the items proposed today by President Obama are more process and regulatory oversight.  As the saying goes WE DO NOT NEED MORE STINKIN REGULATIONS.  Most of what was stated will cause more spending, more government oversight, more socialism in our society.  I do not believe we need more police, I do not believe we need more security guards - we need  more individual responsibility - of the dealers and individuals that sell the guns and of those that own guns.  
Jan 16, 2013 4:11PM
avatar
2011 us ranked first 56.3 billion or 78.7% market share in arms transfer agreements with developing nations an increase from 2010-43.6% market share
202-456-1111 white house comment line
Jan 16, 2013 4:11PM
avatar
The more dense the population of democrats the higher the crime and welfare rates. See Detroit, DC, Miami, Chicago, NY, LA, ST Louis, Atlanta, and Cleveland for details. These areas are the bases of Obummers support.
Jan 16, 2013 4:05PM
Jan 16, 2013 4:05PM
avatar
The majority of crimes in this country are committed near and in large cities.  And of course the cities are mostly demoncrat with a demoncrat for a Mayor.  Funny how the demoncrats want to control guns when they can't protect their own neighborhoods from crime.  I see a big move out of cities like Chicago and New York to the suburbs.  This should help with the housing markets in the suburbs.
Jan 16, 2013 4:02PM
Jan 16, 2013 4:02PM
avatar
WE NEED TO DO SOMTHING ABOUT THE MENTALLY CHALLENGED IN THIS COUNTRY- NOT COVER IT UP BY MAKING GUN REGULATIONS! AGAIN BIG BROTHER IS WATCHING AND TAKING AWAY YOUR RIGHTS!
Jan 16, 2013 4:01PM
avatar
Liberals have destroyed  family values and the work ethic that built America. Now they think legislation will fix the chaos caused by their "progression". Democrats are totally clueless and spineless freeloaders. You cant fix stupid and lazy by taxing the responsible and successful.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.

Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More

MSN MONEY'S