Smith & Wesson
Dan Z. for TTAG
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Outside of the private-prison segment, few market sectors attract as much attention and controversy as self-defense stocks, particularly companies tethered to the firearms industry. With countless tragic gun-related crimes sparking across the nation over the years, tickers like SWBI, RGR, and POWW cannot avoid public anger. At the same time, gun and ammunition manufacturers do plenty of good, making for a complex but possibly bullish case.

Inherently, the issue of gun control consistently ranks near the top among the most politically significant discussions in the U.S. Quite frankly, gun violence is out of control in this country. In addition, too many of the victims are some of society’s youngest and most defenseless. …

However, firearm advocates also present a viable case for self-defense stocks. Fundamentally, gun ownership is integrated into the American DNA. Without firearms, the U.S. would not exist, likely remaining a British colony. As well, there are more guns than people in the U.S., implying strong sentiment for firearm ownership.

From a societal perspective, a rise in crimes in the post-pandemic new normal has negatively impacted both businesses and individuals. With varying response times for law enforcement agencies, sometimes, people must take matters into their own hands for self-preservation. Also, with public anger against law enforcement for police brutality incidents, fewer people want to become police officers.

Finally, the firearms industry also hires hundreds of thousands of Americans across the nation. Cracking down on the sector entirely would equate to careers destroyed, a matter that is also politically unpalatable. Therefore, contrarian investors may want to consider the below self-defense stocks. …

To be clear, self-defense stocks represent significant risks, in part because of their controversial nature. However, if one had to pick a winner, it might be SWBI. Fundamentally, the branding of Smith & Wesson and the notoriety that it evokes may draw curiosity. In a tight consumer market, a business needs all the advantages it can get.

— Joshua Enomoto in Self-defense or Death Promoting? Should You Invest in Gun Stocks?

 

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44 COMMENTS

  1. ‘With varying response times for law enforcement agencies, sometimes, people must take matters into their own hands for self-preservation.’

    Yep, sometimes the cops just can’t get there in under 3 seconds so until teleportation becomes a reality some of us may just have to fend for ourselves from time to time.

    • Smith & Wesson was trading at a mere 9 cents per share back in 2000, when sentiment for the company was at an all-time low. It grew to a high of almost $40 by 2021, or well over 400x growth in price.

      Today it’s just above $10, and severely oversold on all longer term timeframes. It’s ready to come back up, just waiting for the right trigger such as another Dem/Lefty national gun grab.

      • Wasn’t S&W controlled by some British company back around 2000 that was running it into the ground?

  2. Gun stocks? Dunno.

    Ammunition companies? You bet your sweet ass.

    Lead, copper, and double-base chemistries… 🙂

      • Oh, look.

        Tweedle Dumb-ass thinks he’s being clever.

        He isn’t… 🙂

        • Gun sales are through the roof. That happens to be what also drive ammo sales up.

          ‘The hundreds of millions of guns already existing, and unlikely to wear out in my lifetime?’

          Another dumbass heard from, I guess we can stop making guns since there are already so many out there.

        • If they did stop making guns, the demand for ammo would continue for generations.

          If they stopped making ammo the average shooter’s guns would quickly become useless, and an even larger percentage without reloading components.

          The same is true for razors and blades (as noted below), ICE cars and gasoline, or really any durable goods and corresponding consumables. But thanks for your infantile attempt at whatever the fuck that was.

        • “Another dumbass heard from,…”

          You’re the identifying yourself as ‘Tweedle Dumb’ and ‘Tweedle Dumber’, son, not me.

          The troll quality has really taken a dive here in TTAG recently… 🙂

        • More guns = more ammo sold.

          If that’s over your head, get a big person to explain it to you.

        • “More guns = more ammo sold.”

          Not a given, son.

          I’ve been building my collection for over 3 decades by now, and my monthly number of rounds expended hasn’t tracked the number of guns I own by much. And I bet a whole lotta gun owners do something similar.

          That right *there* blows your little theory right out the fucking window.

          If that’s over *your* head, get a big person to explain that to you in small words you can hopefully understand… 🙂

        • My bad, it was wrong to think the millions of new gun owners reported on this site would want/buy ammo to shoot in their new guns.

          “More guns = more ammo sold.”

          Not a given, son.

          It’s beyond retarded to think that millions won’t be used for sport or practice. Not everyone buys guns not to shoot.

          That right *there* blows your little theory right out the fucking window.

    • joshua enomoto…Self-defense or Death Promoting? It’s Self Defense joshua enomoto you sneaky controversial macabre minded dumbazz.
      And joshua enomoto asks…Should You Invest in Gun Stocks? With a ponzi scheme climate change democRat ratbassturd at the helm who shut down a vital pipeline investing in anything nowadays is risky business.

    • All my stocks were great under Trump and terrible under Biden, down 25% or so. I have VSTO and BRC, both doing better than average, so what’s a good ammo stock?

  3. This article seems in some ways an amusing word salad of boilerplate. It’s like they wanted to say “buy this” but they felt like they’d get ostracized for saying that so they included a bunch of lib jargon. The term “self-defense stocks” is something I don’t recall seeing.

    • “It’s like they wanted to say “buy this” but they felt like they’d get ostracized for saying that so they included a bunch of lib jargon.”

      It sounded to me like an admission they’ve lost the public opinion war (thanks to the ‘Bruen’ decision) and now just need to capitalize on the end result…

  4. The article said, “Quite frankly, gun violence is out of control in this country.”
    No, it’s not. The facts are that about 20 times as many people die from preventable medical mistakes in America (500,000 people per year) as by so-called “gun violence,” but I’m still waiting for that to be called “medical violence” or to hear a demand to “ban assault doctors and assault pharmacists.”
    I won’t hold my breath.

  5. “Self Defense or Death Promoting?”

    It’s difficult to think of a more positive investment than promoting the death of violent criminals. Firearms’ only downside is that they cause a quicker, less painful, more dignified death than scvmbags deserve.

  6. In addition, too many of the victims are some of society’s youngest and most defenseless.

    Yet, most of them are “society’s” career criminals committing offenses by the age of 14.

    • Younger than 14 in Chiraq. Even a child is known by his doings. This tepid “recommend” advisory is hilarious. Doesn’t want to offend…

  7. quote————Without firearms, the U.S. would not exist, likely remaining a British colony.——————-quote

    In reality all the major nations which were once British Colonies all achieved independence and most did it by peaceful means. Canada is quite proud of this.

    The most significant tragedy to befall the U.S. was letting the criminal greed monger merchants who started the war break from Britain and establish a corrupt greed monger Oligarchy of the rich which has remained so to this very day. The Oligarchy denied true democracy to the American people and a parliamentary government with multiple political parties. The Oligarchy did not even allow the people the right to vote.

    If the U.S. would have established a parliamentary government the gangster criminal Republicans, which have always been a corrupt minority party, would not have been able to block sane gun control laws, not block National Health Care and affordable drug care and not block affordable education and retraining. Retirement benefits would have been much higher and the U.S. would have a civilized “liveable wage”. The right to form a Union would have been codified and enforced resulting in a higher standing of living for the working people of the U.S.

    Only 1 out of 3 Americans supported the revolution and over 150,000 left the U.S. for Canada after the Revolutionary War was won for America by the professional French Army and Navy. Washington was so inept he was incapable of even training his own men and had to hire an old has been alcoholic ex-German General to train some of his ragtag bunch of hillbillies in the rudiments of military discipline.

    The American forces were led by an arrogant and incompetent melomaniac George Washington , perhaps the worst general ever to lead the American Military. Washington lost more battles than he won and was almost captured twice. It was an American tragedy that Washington was not hung by his dirty balls.

    quote—————Also, with public anger against law enforcement for police brutality incidents, fewer people want to become police officers.———-quote

    Truthful translation: The majority of brutal thugs that are drawn to law enforcement are no longer drawn to it because they know they will be eventually prosecuted and imprisoned for committing assault and murder against U.S. Citizens.

    quote—————–Cracking down on the sector entirely would equate to careers destroyed, a matter that is also politically unpalatable. ————quote

    Translation: Prostitute Republicans take huge bribes from the firearms industry and refuse to stop them from glamorizing weapons of war to a guilbile and largely uneducated conservative section of the country.

    • Mentally demented liar. Your hero, ho chi minh, copied Washington’s game plan word for word. A brilliant tactic on how to beat a super power if you were not one. We got France to aid us and ho got Russia and China.

      When are you leaving for Canada? Oh, that’s right. You’re not welcome in other countries.

    • These “FREE” nations are still under the TITELIGE of the BRITISH EMPIRE!!!! They have to follow the BRITISH RULES!!!

      I remember just last year there was a firefight on a BRITISH island that rose up for Independence!!!!!

      And you should know it is not how many battles you win, it is you “WIN THE WAR”!!!!

    • “The Oligarchy denied true democracy to the American people and a parliamentary government with multiple political parties. The Oligarchy did not even allow the people the right to vote.”

      Really? Democracy is is the suppression of minority voices and concerns. The right to vote existed at the Founding of the Constitution, it was the States that determined voting eligibility.

      You should look up the definition of oligarchy before using that word again. You look foolish enough as it is.

      “It was an American tragedy that Washington was not hung by his dirty balls.”

      You have an unnatural fascination with his intimate parts.

      “Translation: Prostitute Republicans take huge bribes from the firearms industry and refuse to stop them from glamorizing weapons of war to a guilbile and largely uneducated conservative section of the country.”

      Glamorization extends into the gang culture, which you avoided to mention. Are the Democrats as responsible for this as Republican’s? These gang strongholds are in Democratic areas, not conservative. Are they largely uneducated too?

      Your thoughtless history of Washington shows much to be desired in our education system. jwm gave you a better perspective that is more correct in the historical context. Ho Chi lost many battles, lost many men fighting the French and the Americans, he too was almost captured, but I didn’t see you making derogatory or even flattering statements about his genitalia. Washington and Ho both received help from others. History will show that some wars are won even when most battles are lost.

  8. As an owner of firearm stock, I will say the market is volatile.
    Value goes up and down fast.
    Still, overall, I have made more on the investment than lost.On average, year to date, my investment has never gone below original cost, but has stayed at 50% or better.

    • That’s not possible if you hold Ruger stock (RGR). It has gone wayyyyyyy below original cost if you’ve invested in the past 12 months, or the past two years.
      Ruger stock has been plummeting continuously for over 12 months, so if you invested in Ruger stock in the past 12 months, you’ve lost a ton of money. I know because I’ve been heavily investing in Ruger for years, and the value of my Ruger stock has plummeted, almost been cut in half, in the past 12 months.
      Of course, in the past there have been occasional good years for Ruger stock, but 2021-2022 was definitely not one of them! I would give a link to a graph of Ruger’s stock price, but then my comment would be stuck in moderation.

  9. I support firearms and ammunition manufacturers by purchasing their products.

    Given the hatred of the country’s elite ruling class for everything gun-related — at least when it comes to guns in the hands of us normies — I’m staying away from gun industry stocks. Once the rulers turn their weaponized IRS and SEC against gun companies, stocks will tank even if the companies survive.

  10. Please don’t get offended by this, but . . . let us refrain from being stupid.

    One major valuation issue of businesses/industries is “size of potential market”. Firearms are RELATIVELY expensive, still appeal largely to a niche market, and . . . the market ain’t all that big. We all (myself included) crow and pat ourselves on the back that monthly gun sales (as measured by NICS checks) have regularly exceeded 1,000,000 for going on two years, now. GREAT!! That’s 25-30 million new guns a year (ASSUMING all NICS checks translate into actual retail sales). That ain’t much of a market, folks. Many gun manufacturers are public companies, so their annual dollar volume sales can be obtained from their 10-Ks and 10-Qs. But more of them are private, and they don’t have to publish squat about annual sales.

    It’s a big market, historically, for the gun industry, but it’s a tiny market in real terms. And it is VERY volatile. And somewhat trend-driven. People want the “latest ‘new’ thing” – as when 90% of new pistols were Glocks or clones thereof. The AR is a nice, modular platform . . . and totally overhyped.

    I hope ALL gun manufacturers do well, but . . . invest my retirement savings in firearm stocks?? Not this boy. I’ll buy their products, but I won’t buy their stock.

    • Word. I haven’t bought a gun since right about the time the lock downs started. I’ve given some away. Unless I move out of CA I have no future plans to buy any more.

      This is what I find really good about the unstoppable, seemingly, surge in gun sales. This old lie the anti’s tell about gun ownership being on the decline simply falls flat. Even the msm talks about all the guns.

    • I really dont call them plastic fantastics gunms though.
      There kinda like a disposable razor.
      I suppose that’s good in one way.

      • “There kinda like a disposable razor.”

        There’s solid logic in that. It would break my heart if I lost a family heirloom in a DGU to a police evidence room.

        A bone-stock Glock on the other hand, near zero attachment…

  11. Careers destroyed, politically unpalatable.
    Your joking right?
    Because as long as The King is unaffected your career doesn’t matter.

  12. Smith and Wesson will never get a penny from me!!!

    They have a LIFE TIME BAN imposed by me for “CAVING IN ON GUN CONTROL” measures!!!!

        • No. But can you imagine the lawyers and insurance companies raping S&W for removing a ‘safety’ feature that has been on their revolvers for decades? It would ruin the company. And Smith makes more than revolvers.

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