In the short term, the gun run has been very good for manufacturers. Smith & Wesson Holding Corporation (NASDAQ:SWHC) and Sturm, Ruger & Company (NYSE:RGR) , have seen their stock prices rise following the gun-control plan announcement, largely on the strength of the recent gun run. S&W’s gains, though, will be watched extremely close by gun enthusiasts and gun rights advocates because they supported gun control measures a couple decades ago, and it nearly cost the company everything due to the blowback. It is unlikely that we will be seeing a public stance from S&W this time around, given how the company was pilloried the last time around. Strum Ruger is a much smaller player than S&W, so any legal shift would impact them more, and they may be inclined to stand against gun control legislation in the interests of keeping and expanding their market share.
The reaction from the gun market will be an indicator of the political winds regarding gun control, but given the recent burst of gun sales, any threat of prohibition is being taken seriously by gun owners, who are still a powerful force in the political world, and who have the Constitution on their side, a powerful weapon to have in your arsenal.
The article Big Gun Control Plan for President Obama, Big Profits for Gun Sellers originally appeared on Fool.com and is written by John McKenna.
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