Gunmaker Stocks Jump as Obama to Seek New Limits on Weapons
- Smith & Wesson, Sturm Ruger buck decline in global markets
- President may soon take `first of several steps,' analyst says
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Smith & Wesson Holding Corp. and Sturm Ruger & Co., the two largest U.S. gunmakers, rose the most in three weeks after President Barack Obama said he will use his executive authority to introduce restrictions that are designed to curb gun violence.
“When the government attempts to tighten gun regulation, near-term sales of firearms tend to go up,” said Rommel Dionisio, an analyst at Wunderlich Securities Inc. who covers Smith & Wesson. “Consumers are fearful of a certain class of firearms being restricted or legislated against.”