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Gun Stocks Continue To Rise Following President Obama's Teary-Eyed Speech

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Gun Stocks Continue To Rise Following President Obama's Teary-Eyed Speech

Gunmakers had been trading up Tuesday and received an additional boost following President Barack Obama's mid-day speech on gun control.

Shares of Smith & Wesson Holding Corp (NASDAQ: SWHC) moved up an additional 4 percent in the afternoon, recently trading up 12.5 percent at $26.19. Sturm, Ruger & Company (NYSE: RGR) recently traded at $66.10, up 7.8 percent. The stocks initially sold off as the speech began.

"We are not inherently more prone to violence. But we are the only advanced country on Earth that sees this kind of mass violence erupt with this kind of frequency. It doesn't happen in other advanced countries. It's not even close," Obama said. "Somehow we become numb to it and we start to feel that this is normal. And instead of thinking about how to solve the problem, this has become one of our most polarized, partisan debates, despite the fact that there's a general consensus in America about what needs to be done."

Smith & Wesson shares have tripled in the past year.

"Every time I think about those [Sandy Hook] kids, it gets me mad," Obama said, wiping away tears from his face. His speech centered around increasing background checks on gun sales, particular for those who purchase guns online and at trade shows.

Related Link: Gun Stocks, Background Checks Surge As Obama Zeros In On Gun Violence

"[W]hat's often ignored in this debate is that the majority of gun owners actually agree -- a majority of gun owners agree that we can respect the Second Amendment while keeping an irresponsible, lawbreaking feud from inflicting harm on a massive scale," Obama said. Of note, the president also said gun safety technology needs to be improved.

The National Rifle Association sees Obama's actions on gun control "ripe for abuse" by his administration. "Funny how @POTUS invokes civil liberties while trying to restrict one of them. #2A," the NRA tweeted out on Tuesday afternoon.

Obama is scheduled to host a one-hour town hall on gun control on Thursday with CNN's Anderson Cooper.

 

Related Articles (SWHC + RGR)

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