Severe Sell Off Not Affecting Gun Makers’ Stock
With all the major markets experiencing a sell-off of large proportions on Monday, shares of companies making guns surged as just released data pointed to strong sales at the end of 2015.
The year was marked by the mass shootings in California and Paris and the new political pressure to tighten gun regulations.
President Obama will finalize his latest executive action aimed at curbing the gun violence in the U.S. and the unregulated sales.
The president has taken close to two dozen of his executive actions to tighten the law of gun control but the measure have not been able to be pushed through Congress, such as greater background checks.
Recently released data from the National Instant Criminal Background System showed that the number of background checks had risen by about 38% in December compared to December of 2014.
That was the biggest growth for the entire year, which means that it was nearly certain that gun sales during December were up.
The attack during November in Paris that left over 100 dead and another one in California only two weeks later killed 14 capped a year that had massing shootings one after another.
An attack in October at an Oregon community college killed 10, only four months after 9 were killed in a church during a Bible study group.
High profile shootings pushed up guns sales since people begin to feel it is less safe.
Stock at Sturm, Ruger & Co was up 3% and the Connecticut based gun maker last month hit a high of 52 weeks.
Smith & Wesson shares rose by nearly 6% on Monday, one of the largest percentage gains the past year for any gun maker. Shares in the company hit a high of all time only two weeks ago.
After the close of the market on Monday, Smith & Wesson raised its forecast for profit for the ongoing quarter as well as the complete year, citing sales that had been stronger than expected.
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