Tags: Gun Control | Gun Rights | Mass Shootings | Obama | Gun | Salesman | firearms

Louis Navellier: Obama 'Best Gun Salesman on the Planet'

Louis Navellier: Obama 'Best Gun Salesman on the Planet'
President Barack Obama wept openly Tuesday as he urged America to wake up to the need to tackle the gun violence that claims tens of thousands of lives in the country each year. (AP)

By    |   Tuesday, 05 January 2016 02:56 PM

President Barack Obama's impassioned plea for America to embrace some gun control just might end up pushing already soaring gun-company stock prices and firearm sales even higher, one noted stock expert says.

The White House unveiled measures on Monday that would require more gun sellers to get licenses and more gun buyers to undergo background checks. The cornerstone of Obama's executive actions is a background check requirement for guns purchased from dealers even if they're bought online or at gun shows.

The new federal guidance aims to narrow the so-called gun show loophole that allows some purchases to occur without a background check, the AP reported.

"Mr. Obama is the best gun salesman on the planet," Louis Navellier told CNBC.

The chairman of Navellier Associates said he hasn't gotten any pushback from investors concerned about profiting from gun stocks. "They just want us to make money."

Navellier said he is betting on two firearms companies: Sturm Ruger and Smith & Wesson.

Smith & Wesson shares were up 12.2 percent to $26.12 in morning trade after touching a record high of $26.54 earlier in the session. Shares of rival Sturm Ruger jumped 7.4 percent to $65.95 after rising to a 1-1/2-year high of $66.93.

Smith & Wesson also released a more bullish financial outlook, Reuters reported.

Meanwhile, Obama defended his executive actions to tighten criminal background checks. The president was moved to tears in an unusually emotional display during his announcement, saying "it gets me mad" every time he thinks about the 20 first-graders who were killed in the mass shooting at a Connecticut elementary school in December 2012, the AP reported.

“This hasn’t been the first step in some slippery slope to mass confiscation,” Obama said during an emotional speech at the White House, the Wall Street Journal reported.  “This is not a plot to take away everybody’s guns,” he said.

“Maybe we could try to stop one act of evil, one act of violence,” Mr. Obama said. “We maybe can’t save everybody, but we could save some.”

Gun sales surged last month as discussion of weapons restrictions heated up after a terrorist shooting in San Bernardino, California, left 14 dead.

Concern over more gun regulation isn’t the only thing driving sales. People also are buying weapons for personal safety after two shooters opened fire at an employee holiday gathering last month at a San Bernardino public health facility, Chris Krueger, an analyst with Lake Street Capital Markets LLC, told Bloomberg.

The last large increase in demand occurred after the Sandy Hook Elementary School shooting in Newtown, Connecticut, in which 20 children and six adults were killed.

“Three years ago after Newtown, it was primarily the gun-control factor,” Krueger said. “This time it’s a combination of personal protection and gun control.”

Late on Monday, Smith & Wesson boosted its third quarter and full fiscal year sales and earnings outlook. The company said that "the sell-through rate of its products at distribution has been stronger than originally anticipated."

In another boost to the industry, data released on Monday from the FBI's Adjusted National Instant Criminal Background Check System (NICS), which serves as a proxy to overall consumer demand in the firearms industry, showed a jump of 37.6 percent in December.

Following the NICS data and increased outlook from Smith & Wesson, BB&T Capital Markets analyst Brian Ruttenbur upgraded his rating on Smith & Wesson shares to "buy" from "hold" and raised his price target on Ruger shares to $70 from $63. "Many demand drivers (Presidential elections, potential regulations, and new product introductions) should allow for very strong top- and bottom-line growth for (Ruger)," Ruttenbur said in a research note.

(Newsmax wire services contributed to this report).

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Louis Navellier, known for his stock selection prowess, is betting on two firearms companies that have been swept up in a nationwide buying frenzy sparked by Americans concerned about President Barack Obama's intentions regarding gun control.
Obama, Gun, Salesman, firearms
Tuesday, 05 January 2016 02:56 PM
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