Gun Stocks, Background Checks Surge As Obama Zeros In On Gun Violence
President Obama has scheduled a televised town hall meeting with CNN’s Anderson Cooper this week called “Guns In America,” leading many to speculate that gun control could be a primary focus of Obama’s final year in office, according to USA Today.
While gun owners wait to hear what Obama has to say on Thursday, traders are looking to the stock market for ways to profit.
Executive Action Possible
According to White House Deputy Press Secretary Eric Schultz, the president may have to stretch his executive authority in order to get any new gun control laws passed. “What if Congress did something – anything – to protect our kids from gun violence?” Obama asked during how weekly radio address last week.
One of the issues Obama has repeatedly discussed is closing the “gun show loophole” that allows gun buyers at flea markets and collectors’ events to circumvent federal background checks.
Background Checks Hit Record High
FBI firearm background checks surged 44 percent year-over-year in December to a new all-time high, and uncertainty over what actions Obama may take will likely continue to push gun sales higher in the short term.
The 3.31 million FBI checks in December are more than double the number of checks performed during December of 2010.
How To Play It
Smith & Wesson also raised its Q1 guidance from $150–155 million to $175–180 million.
Disclosure: The author holds no position in the stocks mentioned.
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