Gunmaker Stocks Surge on Obama's Re-Election
Everybody's anticipating a surge of purchases to beat the control-freakery
Smith & Wesson Holding Corp. (SWHC) climbed the most in two months to lead a rally among firearms manufacturers as traders speculated that President Barack Obama's re-election will spur gun sales.
Shares of Smith & Wesson jumped 9.6 percent to $10.37 at the close in New York, the biggest gain since Sept. 7, while Sturm Ruger & Co. (RGR) rose 6.8 percent to $47.68. Both make handguns as well as rifles that include semiautomatic models.
After sidestepping gun-control measures in his first term, Obama said last month he would consider reintroducing a ban on civilian purchases of military-style assault weapons. Firearm sales have grown at 10 percent annually since 2008, when Obama was elected, compared with a 7 percent rate from 2001 to 2007, according to Benchmark Co.