Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Gun Stocks Are on the Rise, While 2 Communications Stocks Are Rallying After Cancelled Merger

Page 1 of 2

U.S stocks have opened higher today, spurred on by a better than expected jobs report. After last month’s report brought fear and anxiety to the market, today’s report has calmed investors, providing further proof that the economy is on the right path.

During the month of June, approximately 287,000 jobs were created in the U.S, toppling economists’ estimates of 175,000 jobs. However, the unemployment rate rose slightly, to 4.9%, while economists were expecting it to rise to 4.8%. The Dallas shooting has also had an impact on several stocks, an aspect we’ll discuss below.

We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see more details here).

market, stock, money, index, graph, credit, globe, advisor, economics, ticker, business, income, arrow, success, diagram, wealth, data, analysis, report, monitoring,

Horoscope/Shutterstock.com

Gun Stocks Blazing

Gun stocks are flying high this morning in the wake of the Dallas shootings, in which five Dallas police officers were killed and seven more were injured by snipers during a Black Lives Matter protest against police violence.  Smith & Wesson Holding Corp (NASDAQ:SWHC) shares opened 5% higher today, while Sturm, Ruger & Company (NYSE:RGR)‘s stock is 4% in the green. Investors’ reaction to the news is typical, as gun stocks often soar after mass shootings which are perceived as a trigger for increased demand for firearms from customers purchasing guns and ammunition for self protection, as well as existing gun owners adding to their arsenal in the event that gun control legislation is voted in. Less than a month ago, Smith & Wesson Holding Corp (NASDAQ:SWHC) jumped by 6.9% and Sturm, Ruger & Company (NYSE:RGR) surged by 8.5% after 49 people were killed at a nightclub in Orlando.

Follow Smith & Wesson Holding Corp (NASDAQ:SWHC)
Trade (NASDAQ:SWHC) Now!

Hedge fund sentiment towards Smith & Wesson Holding Corp (NASDAQ:SWHC) took a turn for the worse during the first quarter, with the number of funds invested in the company having fallen to 24, down from 27 registered at the end of 2015. The number of funds holding Sturm, Ruger & Company (NYSE:RGR) in their equity portfolios was unchanged during the first quarter at 27. Ken Griffin‘s Citadel Investment Group was invested in both stocks but was exhibiting different sentiment towards them. In its latest 13F filing, the fund reported a 21% reduction in its holding of Smith & Wesson, to 335,136 shares and a 110% increase to its stake in Sturm, Ruger & Company, to 75,983 shares.

Follow Sturm Ruger & Co Inc (NYSE:RGR)
Trade (NYSE:RGR) Now!

On the next page we’ll take a look at a merger agreement that ended prematurely and how a furniture company performed during the second quarter.

Page 1 of 2
Loading Comments...