Want a Stock Tip ? Invest in Guns
Posted Nov 09th 2012 | By:
With the economy in the worst mess since the Great Depression, and consumer confidence slipping, it's not really a great idea to invest in the stock market (just ask Zuckerberg!). However, with that being said, it's the perfect time to invest in gun and ammunition companies.
Why invest in companies?
For gun and ammunition makers, right now business is a boomin. Over the past few decades, gun makers who had good products have done well in this country. With the economic and political uncertainty of the past four years, gun sales have skyrocketed. With the recent election results, another four more years of the same seems likely.
The bad news for the market investor is that the vast majority of firearms and ammunition companies are privately owned. There are a few out there that are publicly traded on the stock market, and we'll look at those.
Sturm, Ruger & Company, Inc. has been around since 1949 and 99% of its business is in making all types of centerfire and rimfire arms. They have been so successful in recent years that they even had to suspend new orders earlier this year so that supply could catch up with demand. They literally can't make them fast enough.
Smith and Wesson
One of the oldest names in handguns is good old S&W (SWHC). The company is now working in its third century, makes not only Smith & Wesson branded products but also Thompson Center, and is the US-maker of Walther. Their stock right now is a bargain and has seen some difficulties, but it's still a good bet.
In the ammunition game, the story is much the same with most makers being privately held companies owned by investment firms the Cerberus and the Freedom Group. However two, ATK and Olin, are publicly traded and can be invested in.
Alliant Technologies (ATK) owns and make Federal, CCI, and Speer ammunition as well as runs the Lake City ammo factory under contract for the Army. The also have their fingers in a lot of other defense related contracts (they make most of the Army's tank shells); own Blackhawk and Eagle industries and a few other things.
Olin (OLN) among a thousand other things makes Winchester branded ammunition (but not Winchester guns.) Their main product however is chemicals, which make up some 71% of their business.
Of course, I'm not a broker, and none of the above is financial advice. Do your own research and consult with your broker (if you have one) before making any purchase.
On the other hand, you can always just take your fluid cash and invest in guns themselves . After all, there can be no better gold in a TEOTWAWKI that ballistic wampum.
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