Anyone Else Buy Ruger and Smith & Wesson Stock After Sandy Hook?

[Subverto]

I forget which member it was, but as I was reading through the posts after the Sandy Hook shooting, someone said it was a great time to buy Ruger and Smith and Wesson stock because the prices had dropped so low. Well I did, and I just wanted to say thank you to whoever made that recommendation, because it has paid off quite well .

[LarryD1130]

I forget which member it was, but as I was reading through the posts after the Sandy Hook shooting, someone said it was a great time to buy Ruger and Smith and Wesson stock because the prices had dropped so low. Well I did, and I just wanted to say thank you to whoever made that recommendation, because it has paid off quite well .

I chose RGR as my stock in my finance class and it is doing pretty well. Wish somebody would have gave me the heads up about Netflix.

[emckee57]

I bought after the election. Had about a 20-25% run up. Was tempted to take those profits. After sandy the stock tanked, but I held knowing firearm sales would be on fire after. It's since returned to a healthy profit. Just wish I doubled down when the stock was low in December.


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[ShooterInPA1]

I added to my positions in RGR and CAB. RGR over SWHC bc it has a great pieline of products but more importantly.....No Debt! SWHC has a lot of debt.

[sbmania]

I bought some RGR a year or two back and periodically add to it when I get some extra money. It has performed very well and I think should continue to do well no matter what laws are passed.
On another note, is anyone range trading it for better gains? Maybe sell when it approaches high 50's and buy back in when it drops to the 40's. I'm thinking it might be time to sell some and wait for a drop (either general market or bad gun news) to buy back in.

[ayres]

another play on firearms is oln maker of the winchester ammo or at least the brass. it's not a pure play but still maybe take a look at it. also there is a thread on here about the printed ar lowers. this whole niche sector has been doing very well over the last year take a look at ssys ddd and newcomer and a pennsylvania company xone.

[ayres]

also ATK owns Federal Premium, Alliant Powder, RCBS, CCI, Fusion, Speer Ammo, Speer Bullets, Estate Cartridge and Blazer, weaver

[MuzzleFlash]

When I ran simulations on Jstock I would buy gun stocks in mid March, wait for the shootings that happen every April, and cash out in May. It works like clockwork, a shooting, a calm before the storm, rallying and legislation, then panic buying. Shortly after that there's a crash and the stocks return to normal. Thankfully I could never bring myself to invest that way with real money, even though it's a fast way to wealth.

If you have any moral sense, and you purchased after a shooting, do not cash out for at least 6 months after the shooting occurred. By that time, the crash usually occurs and gun stocks return to normal. Any profit made as a result of a shooting is blood money. Dead children have given you ill gotten gain. If you purchased before, do as you please, you didn't know what was coming.
However, given the current time, I would plead with any investors that if you invest in gun stocks now, you hold it until July or later because shootings have become a yearly event and April is right around the corner. If you're a true investor, in it for the long term, have at it, but if you're looking to buy and sell within the year, gun stocks should usually be avoided because of the reason for their increase. By placing money on gun stocks before April, or after an 'unscheduled' shooting, you're gleefully hoping the loss of many families will translate into personal financial gain. The drugged up psychopaths are not the only ones who make a killing.

Prov 10:2 Treasures of wickedness profit nothing: but righteousness delivereth from death.
Prov 10:3 The LORD will not suffer the soul of the righteous to famish: but he casteth away the substance of the wicked.

Don't get me wrong, as an American (supporting US jobs,) an investor, and a gun nut, I'm all for investing in gun stocks, just be honest to yourself about why and when you do so, and when you sell. Besides, if financial gain is your only goal, you can do the same trick with Weight Watchers in December then wait until mid January without the need for a killing spree. Not all predictable patterns should be followed. When I began investing I left the Bible open on my desk for several months until I drilled this passage into my head;

1Tim 6:7 For we brought nothing into this world, and it is certain we can carry nothing out.
1Tim 6:8 And having food and raiment let us be therewith content.
1Tim 6:9 But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition.
1Tim 6:10 For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.

Remember what “gain” and “loss” truly is.

[Subverto]

If you have any moral sense, and you purchased after a shooting, do not cash out for at least 6 months after the shooting occurred. By that time, the crash usually occurs and gun stocks return to normal. Any profit made as a result of a shooting is blood money. Dead children have given you ill gotten gain. If you purchased before, do as you please, you didn't know what was coming.

I have to respectfully disagree. Gun stocks drop after a shooting because people are dumb and blame guns (inanimate objects) for the shooting; selling their shares of gun stock, which makes the price drop. Then more dumb people start panic buying guns (if they really wanted the gun(s) prior to the incident, they had plenty of time to get them) which causes the price of stocks to shoot up.

Any gains I make for buying the stock when it's low, and selling it when it's high comes as a direct result of people being dumb. Not from children being murdered.

[Drgiggles1]

I didn't buy swhc but they are up from $8 to over $10 already. I've been watching it out of curiosity. There conference call is going on now so if you are an investor in swhc I would definitely be listening. It can have a big pop in the near term if they continue to outperform only because of the 22% short position in the stock. A lot of people betting it's going to go down. If they're wrong they will get squeezed out and you can see a 25% pop from today putting the stock price around $12.50-$13.00 a share.