A Run on Guns is Making Investors Happy [View all]

[Common Sense Party]

Like them or hate them, one cannot argue that an investment in guns and the companies that manufacture them are making investors very happy. To validate the claim, consider the following two companies and their current stock prices.

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The final issue for investors is to determine what is driving this demand and how long it will last. After analyzing the financial reports for both RGR and SWHC, speaking with retail outlets, and examining news and media publications, it seems there are four reason that are in play which are feeding people's demand. These are:

1. The perception that new and highly restrictive gun laws will soon be introduced by the government.

2. The rise in highly popular reality television shows that revolve around the manufacture, usage, and competitive sports using firearms.

3. A general fear of civil unrest sparked by economic uncertainty and recent events from overseas.

4. The rise in popular reality television shows that revolve around "Doomsday" preparations.

http://seekingalpha.com/article/462241-a-run-on-guns-is-making-investors-happy?source=yahoo

I don't know that I can agree with #1; Obama's administration hasn't made any overt moves to signal new, restrictive gun laws. #2 and #4 I can see. I'm not sure about #3. Maybe some people are driven by economic uncertainty unrest and foreign tensions. But I really haven't noticed a crime upsurge during this recession.

All that said, a company with strong sales and solid earnings potential can often be a good investment. I don't buy individual stocks, but if I did... Thoughts?