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.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • 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.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2167062, ~/Articles/ArticleHandler.aspx, 10/31/2014 6:19:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,390.52 195.10 1.13%
S&P 500 2,018.05 23.40 1.17%
NASD 4,630.74 64.60 1.41%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/31/2014 4:00 PM
CAB $48.02 Up +0.85 +1.80%
Cabela's, Inc. CAPS Rating: ****
DKS $45.37 Up +0.46 +1.02%
Dick's Sporting Go… CAPS Rating: ****
RGR $41.68 Down -0.79 -1.86%
Sturm, Ruger & Com… CAPS Rating: ****
SWHC $10.16 Up +0.13 +1.30%
Smith & Wesson Hol… CAPS Rating: ***
WMT $76.27 Down -0.18 -0.24%
Wal-Mart Stores CAPS Rating: ***

Advertisement