Why gun stocks soared after Obama's win

In a repeat of 2008, traders anticipated an increase in firearm sales after the election.

By Kim Peterson Nov 8, 2012 2:41AM
Updated 12:25 p.m. ET

In a reaction that surprised absolutely no one, investors rushed into gun stocks after President Barack Obama's win, expecting firearm sales to soar soon.

Gun makers Smith & Wesson Holding (SWHC) and Sturm Ruger (RGR) rose sharply Wednesday in a repeat of sorts of the response to Obama's first presidential victory in 2008. The stocks were up again in Thursday's trading. Gun stocks have performed well over the four years of Obama's term. Sturm Ruger, for example, rose from $7.04 on Election Day in 2008 to $50 Thursday.
But investors think the stocks have farther to go, propelled by fears that Obama will crack down on guns in his second term.

Sturm Ruger shares rose 6.8% Wednesday and another 4.8% Thursday. Smith & Wesson shares rose 9.6% Wednesday and another 3.8% Thursday. By comparison, the Standard & Poor's 500 Index ($INX) fell nearly 2.4% Wednesday and was down slightly Thursday.Ruger pistols © Getty Images

The National Rifle Association certainly contributed to fears of expanded gun control in Obama's second term. "An anti-gun Supreme Court, a U.N. Arms Trade Treaty, and a sweeping gun ban aren't just a possibility in a second Obama term," the association's CEO, Wayne LaPierre, wrote on the group's website. "They're a near certainty."

But Obama hasn't taken much action on gun control. In fact, he signed legislation allowing loaded guns into national parks and on Amtrak trains. Still, in the second presidential debate, Obama mentioned the possibility of keeping automatic weapons out of the hands of criminals and the mentally ill.

"Part of it is seeing if we can get an assault weapons ban reintroduced, but part of it is also looking at other sources of the violence, because frankly, in my hometown of Chicago, there’s an awful lot of violence, and they’re not using AK-47s, they’re using cheap handguns," he said.

That comment may have triggered a consumer fear that gun sales will see tighter regulations. In October, the number of federal background checks on potential gun buyers rose 10.6% from the month before to 1.61 million, according to the FBI.

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Tags: RGRSWHC
835Comments
Nov 8, 2012 12:40PM
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people are idiots......

 

obama's not going to take away your guns any more than ted nugent is......he has bigger fish to fry than gun control.....in case you hadn't noticed, he has a country to get moving....

 

i think it's the gun lobby and gun makers who are ringing the death knell of gun ownership....what a great sales strategy......get 'em while you can folks....we've only been around 175 years, you never know when we might close up shop......

Nov 8, 2012 12:40PM
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Its amazing how many more guns deaths per year the USA has then other countries.  Not just in numbers but in % compared to the population its pathetic.  Canada averages about 300 a year with a population of 30 million.  You average 30,000 a year with a pop of 300 million.  If we had a pop of 300 million we would have 3000 deaths.  You have 10 times that.

Your second amendment was written in 1776 when the USA was defended by militias.  There was a threat of the British returning, a wild country side with isolated farms and Native Americans that you guys fought with constantly.  Which of those things are still an issue?

If you can't see it was a law written for a different time and has been outdated then you are lost.

Nov 8, 2012 12:39PM
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The 47% leech class will react with violence to seize what you have when the SHTF

 

 

You best believe it...what you stole gonna be redistributed back to the American masses.

Nov 8, 2012 12:37PM
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I don't believe this POTUS or any future POTUS would dare try to repeal the 2nd Amendment. 

That being said, the need for control is important.  If we look at the random crimes commited with guns you can see that these are illegal, stolen, pawned, bought, sold under the table, etc.  Those are the arms that law enforcement should ban.  Legal purchases should be tightly controlled with background checks to help better prevent another Columbine or Aurora (crimes with weapons bought legally).

 

BTW - I am a gun-toting liberal.  I took lessons at the gun range, took my CHG test and got my license.  Why?  Not to wave around like the Wild West screaming "Pry this from my cold, dead hands!" or for some revolution that will never happen, but because it is as important to me to know how to control a weapon as it is to control my vehicle.  Because I'm a woman living in the city.  I'm not afraid of my rights being taken rather I'm prepared for an unforseen event against my home or my person.

Nov 8, 2012 12:37PM
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Geeeee! I wonder who started the NRA? It couldn't be the arms industry, could it? The companies that profit off of gun sales!!!!

 

All of the NRA groupies I know are paranoid and depressed idiots. They are fascinated with firearms. One gun isn't enough. Ten guns aren't enough in their collections. Fifty guns aren't sufficient either. I know a lot of the clowns posting on blog fit what I just said in this paragraph to a Tee!!!

 

I grew up shooting BB guns and 22s, but I haven't owned a gun in my adult life. I don't even have a FOID. Criminals can get a gun with or without a FOID in under an hour. You can wait a couple days to buy a gun to add to your precious collection. Then you can stick it in your gun locker for the next fifty years and take it out once in a while and stroke and clean it!!! 

 

I have no problem with citizens owning guns. What turns me off is that the NRA whips the imaginations of millions of idiots out there, who would be just as dangerous if pandamonium broke out as the criminals who use guns to commit crimes and murders. Too many of them are one step away from being the next assassin. Guns make them feel powerful, as if they can do anything or have the authority to judge with a bullet. If you want to use guns for hunting or target shooting-that's OK by me-have fun! But take the hate and stupidity out of the hobby please!!!

Nov 8, 2012 12:37PM
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ok! Let's say all firearms are banned and confiscated tomorrow from everyone including the crimanls. Will that stop the hoodlems and gangsters from attacking with knives and baseball bats? Anyone know what a zip gun is and how to make one with a pipe and a nail?

Will the crimanls get a real job and become good citizens?

 

 

 

Nov 8, 2012 12:37PM
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"Waaaahhhaaaah! Waaaaaahh! Waaaaaaaaaaaaaaahhaaa! I gotta sleep with guns under my pillow, every night! Waaaaaaaaaaahaaaaaah! I gotta sit on the toilet or take my once-a-week shower-- with a gun! Waaaaaaahhaaaaah! I gotta drive my pickup truck, text, and have a gun-- all at the same time! Waaaaaaaaaaaahhaaaaaaaaaaah! I gotta be paranoid to feel safe, in my nice country vanilla 'hood" Waaaaaaaaaaaahh! I see terrorist out to get me in every shadow! Waaaaaahaaaaaah! Sob! Sob! Snort! Fart!"... cries the "oh-so-brave" gun-nuts!

What an act...!

Nov 8, 2012 12:36PM
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There's nothing wrong with regulations regarding guns. I can get a pistol permit, a shotgun, rifle, whatever i want if I want. NY where I live, has strict gun policies, but, still hasn't changed anything even in the City where the carrying a concealed weapon is illegal even with a state permit. Illegal handguns and weapons are the threat. A gangster isn't going to go in front of the judge and apply for a permit. A murderer doesn't much care if the gun is legal or illegal. Unfortunately, there's not much you can do in this situation. Taking guns away from the citizens who need to lawfully protect themselves against criminals is certainly not a good thing. The only thing the government can do is really start cracking down on illegal sales of firearms. The weapons are coming in from across the borders, mostly through the Cartels. This seems like a bigger problem then Walmart checking their background to make sure they won't shoot you. If they want to shoot you, they'll go see Johny down the street or Jose.
Nov 8, 2012 12:36PM
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FEAR...FEAR...FEAR...FEAR...HATE...HATE...HATE...FEAR...FEAR...FEAR

 

Doesn't ANYONE see the obvious connection between the investors and gun companies just trying to boost sales of an item that doesn't wear out very fast?

 

Without a war to sell to, these companies will lose revenue, so they peddle FEAR and HATE.

 

Obama LOOSENED gun regulations, people. STOP THE FEAR, NOBODY IS GOING TO TAKE YOUR GUNS

Nov 8, 2012 12:36PM
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Its crazy! What is the hype all about? Nobody is taking any guns away!! Every time a demo gets elected this goes on. You guys are crazy but it is a good reason to buy a gun. So go buy and lets go shoot.
Nov 8, 2012 12:34PM
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Whats next ? Ban butter knives. Ban pocket knives. They could  be dangerous too. What about Chevy Volt . Some of them catch on fire . Have a nice day !!
Nov 8, 2012 12:34PM
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OH NO!!! I better go stock up on guns before Big Bad Obama comes to take them away!!!! LMFAO
Nov 8, 2012 12:34PM
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Does no one on here realize that we said No to the UN on the gun control?  Are is everyone just going of what they are told.  If you look at the records you can see Hilary's office said it was not going to happen when they changed the wording.
Nov 8, 2012 12:32PM
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It's because people are stupid and extremely paranoid for no reason other than the fact that a black man is president again.
Nov 8, 2012 12:30PM
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Fear OBAMA's SOCIALISM !  GUN UP!!! 

 

 

Nov 8, 2012 12:30PM
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Coffee said;
"Keeping automatic weapons out of the hands of criminals and the insane. I guess that will outrage the Tea Baggers."

Automatic weapons have been banned for over a decade!
You might want to get a clue before you pop off Buffoon......................
Nov 8, 2012 12:29PM
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The saddest part of all is that the MSN article(s) ranging anywhere from Gun Sales to Cooking Apple Pie with Open Forum posts allowed, seem to draw pathetically mindless, empty hate comments against anyone left of the radical right, and are riddled with 'bully mentality' cheap shots against the President. Eventually MSN will do away with the Forums all together thanks to these trolls...   
Nov 8, 2012 12:28PM
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Please do something to get the automatic weapons off the streets. I have no problem with individuals

protecting themselves with a hand gun and hunters having rifles.

Nov 8, 2012 12:28PM
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Firearms have been going up and down for YEARS, what does this have to do with Obama? Obviously Kim Peterson voted for someone else..
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