Fear of Obama . . . .

Discussion in 'General Discussion' started by mrkirker, Feb 26, 2009.

  1. mrkirker

    mrkirker New Member

    Jul 13, 2007
    Fear of Obama drives gun stocks higher
    Posted Feb 25 2009, 02:02 PM by Anthony Mirhaydari Rating: Filed under: retail, Anthony Mirhaydari

    Rising concern over increased regulation from the Obama White House has gun buffs stocking up on the latest tactical rifles and pistols. This helps the fortunes of gun makers Smith & Wesson (SWHC) and Ruger (RGR) as well as specialty retailer Cabela's (CAB), which specializes in firearms and hunting gear.

    Ruger reported Tuesday that gun sales increased 81% in the fourth quarter on new products and "robust firearms demand." Its order backlog now stands at $48 million. Smith & Wesson plans to double revenue within the next three years and reported increased sales from "speculation on the outcome of the presidential election." Cabela's reported that same-store sales rose 2.2% over the holiday election season -- a time of great distress for other retailers.

    With that kind of performance, it's not surprising investors are flocking to these names. Over the last week, while the S&P 500 is down 2%, Smith & Wesson is up 56%, Cabela's has gained 35%, and Rugers added 44%.

    Based on my conversation with Wedbush Morgan analyst Rommel Dionisio, much of the sales increase has been in self-defense firearms like military-type semi-automatics or pistols. Sales of traditional bolt-action hunting rifles and shotguns remain steady. Cabela's spokesman Joe Arterburn notes that many of these customers are first-time buyers who "have never had a handgun in their home but believe now ... is a good time to buy them." In other words, people aren't looking to hunt deer; they're worried about other people.

    The question, of course, is whether this performance will continue or will end up being a brief, post-election buying binge. According to the FBI, background checks on potential gun buyers increased 29% last month over the same period in 2007. Although Obama has always played down the gun rights issue, many seize on his off-the-cuff remarks last year that people "cling to guns and religion" during times of economic stress. For the record, he has tried to soothe jumpy nerves: "I believe in common sense gun safety law, and I believe in the second amendment. And so, lawful gun owners have nothing to fear."

    Nevertheless, as the economic picture darkens, it's more than possible people will stop fearing our new president and start worrying about a Mad Max-like apocalyptic scenario. Just look the huge increase in the popularity of physical gold. Sales of the popular American Eagle gold coin are up four-fold while commodity investors are increasingly opting for physical delivery of gold bullion instead of settling futures contracts in cash. Bankers are reporting that more clients are hoarding gold in their vaults.

    Sure, this is crazy. But remember that humans aren't rational and that fear is the strongest of all emotions. Forget traditional defensive sectors like utilities and healthcare. Go with guns and gold.

    Update: Attorney General Eric Holder told reporters Wednesday that President Obama would like to "reinstitute the ban on the sale of assault weapons" that expired in 2004 under the Bush administration. Holder said the ban would not only be a "positive move" by the United States, but would help reduce the trafficking of guns to the drug cartels in Mexico. It looks like the gun boom is far from over.
  2. SaddleSarge

    SaddleSarge New Member

    Aug 24, 2008
    He was doing o.k. until he got to this:
    They just don't get it. :rolleyes:

  3. pinecone70

    pinecone70 Active Member

    Jul 30, 2008
    Minnesota Gal!
    Americans are armed to the teeth!
  4. Lori Mick

    Lori Mick New Member

    Nov 7, 2008
    Stuck in Upstate NY for a while
    has anybody noticed that petition over at World Net Daily about questioning the Mighty O's birth? In the past 2 weeks the numbers have been getting higher and faster....it's almost 300K now...

    Eventually somebody has to open their eyes and make him prove who he is.

    I also got an email today from a group fighting ACORN and the money that they are getting....

    The tea party count is getting higher...

    people are getting more and more pissed off...

    today one of my clients came in and said she felt so bad that she voted for the man because she thought it would be a good change....

    other people in this office building tell me I'm too hard on the guy and we should give him a chance....
    before or after he bankrupts the nation, tosses out the constitution, and puts us all in danger... now an anthrax threat? http://wnd.com/index.php?fa=PAGE.view&pageId=90019

    ok...that's my rant for the afternoon! :D
  5. Haligan

    Haligan Well-Known Member

    Feb 25, 2008
    FEMA Region II
    Guns, gold and silver. I bought a bunch of silver, don't tell me I goofed again.
  6. Blackhawk Dave

    Blackhawk Dave Member

    Nov 20, 2008
    Denton, TX
    A better return is to purchase AR-15s and the largest magazines you can find.
  7. UncleFudd

    UncleFudd Well-Known Member

    Mar 23, 2008
    Phoenix, Az
    MRKIRKER and all;
    I have been in the firearms business since 1978 and have never in my years seen anything like what is happening in stores all over this country since October and Nov last year.
    People are worried for various reasons and with damned good cause IMHO.
    It is not only the big O who is dangerous either as I said before, look at the latest rant by our new Atty gen and his #2 man.
    They were on national TV this morning talking about re instituting the 94 assault weapons ban with a whole bunch of add on guns and also making it permanent so that it can never sundown or whatever fancy name they give it this week to say "permanent".
    He is also talking to the Mexicans (in spanish) telling them "we are going to do something about the AK47s" flooding across the borders to arm the drug cartels. Meaning further he and his #2 are going to do all they can to stop the sale and ownership of all firearms to the people of this country. It is a mantra and a goal for these two pukes and they will not be stopped except by the senators and congressmen and women who do not support him with their votes.
    But be aware of what he can do with Marshall law, terrorism and the Homeland Security laws to bypass the Constitution all together. Remember that bill that is sneaking through under the radar right now HR45! If it passes, it will be the first registration and more of tis nation and the only thing to follow is then confiscation.

    But the good thing that I have seen along with the purchase of ammo and guns is the huge numbers of people who are attending classes of all kinds to learn about their guns and the laws of the land.
    That has been very impressive to me as it says loud and clear the people are still trying to do it right in spite of all the anti gun rhetoric we hear from all quarters of the liberal mindset.

    I don't agree, after working with and visiting with gun buyers every day of the week. Every age group and regardless of gender or economic status, people are not frightened, but cautious and planning ahead for emergencies.
    Just as those who are laying in supplies of food and water and other emergency items they are going to be prepared if necessary,to legally protect and defend themselves and their families under any and all circumstances.

    It is not only the economic situation and the fact that the new administration is leading this country over a cliff, but the other dangers that are now coming to the fore, such as the drug cartels in Mexico and the insolvent Mexican government and their own financial crisis. And here in Arizona at least there is only one man fighting the illegal situation in the entire state, Sheriff Joe. Regardless of how you feel about him and his politics, he is at least doing something about the serious problem we have here.
    However that is one of hte problems that concerns the citizens of this and other border states, floods of illegals all at once that cannot be stopped or contained.

    Let's all keep up the good work and keep those letters and phone calls going to your reps every day to let them know we are watching what they are doing and there will be no second chances if they don't listen.

  8. armedandsafe

    armedandsafe Guest

    I'm thinking seriously about opening up my school, again. Living in a rural, farming and hunting area, I didn't think it would be worth while. However, I'm hearing from first-timers all over. Even my Dentist, a lifelong San Fransican, just bought an X9.

  9. noslolo

    noslolo New Member

    Oct 15, 2004
    Johnstown PA
    It still has not showed in their stock prices:(
  10. mrkirker

    mrkirker New Member

    Jul 13, 2007
    Good to hear from you again, Uncle! :)
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