Did Sandy Hook Spell Doomsday for Smith & Wesson?

In the wake of last week's shootings at Sandy Hook Elementary School, investors are selling off shares of gunmakers Smith & Wesson (NASDAQ: SWHC  ) and Sturm, Ruger (NYSE: RGR  ) . Guns and ammo retailers aren't faring much better, as shares of sporting-goods chains Cabela's (NYSE: CAB  ) and Dick's (NYSE: DKS  ) continue to slide, while Wal-Mart (NYSE: WMT  ) -- long known among shooting enthusiasts for having some of the best prices on ammunition around -- are suffering as well.

With Congress moving swiftly to write new regulations for gun sales and ownership, this all seems a logical reaction to the headline news. Yet at the same time as investors rush to sell their shares, gun buyers are rushing to buy firearms -- before any new laws hit the books. Could it be that investors are missing a golden opportunity to "get greedy when others are fearful"?

Fool contributor Rich Smith thinks so, as he explains in today's video.


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  • Report this Comment On December 21, 2012, at 9:47 PM, epeon wrote:

    YES! When RGR dropped to 40.60, I took a large position. I wrote a covered call for 45.5 for January at .95. Buying opportunity.

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