Even gun manufacturers with a more military bent, such as Alliant Techsystems Inc. (NYSE:ATK), see better times during gun control debates. While the operating margin number isn’t quite as interesting at only 5.99% for the fourth quarter, share price growth has been good. Since last June, shares have increased from $45.47 to $73 – a growth of 60.54%. In addition, earnings have grown 32, both on increased sales and acquisitions. One warning though–because Alliant Techsystems Inc. (NYSE:ATK) does a lot more than just sell guns for consumers it’s shares don’t show the same long-term Obama Effect as the others do.
One left in the chamber
We can see that gun manufacturers can be good investments in general, and even better when the debate is raging. The gun lobby is one of the most effective in the United States and knows that its job is to promote debate while preventing an actual attempt to restrict the sale of firearms. Combine that with a strong gun ownership tradition and a sense of the importance of near-term buying by the public, and it’s good times for those who own shares in gun companies.
The article Gun Control Is Good for Gun Ownership originally appeared on Fool.com and is written by Nate Wooley.
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