Human behavior as it is – and irrespective of one’s position on gun control – 2013 will likely be a very profitable year for Smith & Wesson (SWHC-$8.15) shareholders. Nonetheless, given the headlining visibility and public disgust over the paroxysmal spate of massacres still fresh in our collective memory (from the 1999 shootings at Columbine High to the crazed gunman slaughtering moviegoers in Aurora, Colorado this past July), investors are fearful that emotional momentum could force Congress to work with President Obama and enact a meaningful ban on the sale of assault weapons – common parlance, “sporting rifles.”
The recent decline in Smith & Wesson’s stock price, in my opinion, already reflects this worst-case scenario - the total ban of assault weapons with large ammunition clips.
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.
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