Wednesday, November 7, 2012
As The Stock Markets Tumble....
The stock market is seeing an across the board sell-off today. As I write at approximately 12pm EST, all major stock market averages - the Dow, S&P 500, and the NASDAQ - are down approximately 2.3%. Part of it is news from Europe that a recession there is all but a certainty and part is the election results along with the "fiscal cliff".
Coal stocks, as might be expected given Obama's jihad against coal, are down even more.
But guess what two companies are seeing strong increases in their stock prices.
That's right - Ruger and Smith & Wesson. Currently, Ruger (RGR) is up $2.40 or a 5.38% increase while Smith & Wesson (SWHC) is up 77 cents or an 8.14% increase over yesterday. Both of these are pure plays on the firearms market.
The ammo makers Olin (Winchester) and ATK (Federal) are down. However, they have other businesses besides just ammunition production. ATK, in addition to making ammunition, is a significant defense contractor while Olin is a big producer of chlor-alkali.
UPDATE: Bloomberg TV has noticed just how well gun makers's stock is doing today as well.