I just think they have a shot to sell to govt as govt today buy Colt and Savage but almost nothing from SWHC. New president - no matter which one - would lead to a better or at least a tighter grip on procurement for DoD. I was wong before and SWHC went down but I believe they can make it higher from this level. They downsized their hunting gun division - not the DoD stuff.
Smith & Wesson Holding Corp., through its subsidiary, Smith & Wesson, offers metal processing services and manufactures firearms and handcuffs as well as apparel and sportsmen’s articles. Through Smith & Wesson Academy, the company provides training facilities to law enforcement personnel. Its customers include distributors, state and municipal law enforcement agencies and officers, retail accounts, and consumers worldwide. The company was founded in 1852 and is based in Springfield, Mass.
They have many new products and have entered the tactical rifle market and hunting segment. Law enforcement and the military are major customers thereby offering some cushion against a decline in consumer spending Beaten down stock Commodity bull markets are associated with higher crime rates,so the guns will be in great demand.
All of the gun shows for the last two years have sold out before the doors have opened. Smith and Wesson has been able to turn this demand into company growth. New gun business regulations which have come up in 2008 will put the hurt on profits but this bearish pressure has already been figured into the price.
Prisons are the only major commericial real estate being built in California and gaurds will need rifles to run the business.
I normally don't get into speculation, but I can't resist this one. Sometime this spring the Supreme Court will rule whether or not Washington DC can ban handguns outright. If the SC rules that they can, no doubt other large cities will institute handgun bans as well which will set off a rush to buy handguns before bans go into effect. If they rule in favor of the Constitution, as I believe they will, the stock will likely level off after the run up in speculation this spring. However, if a democrat is elected president, I see it taking off again after this fall and the start of '09.
Just days before the Nov. 4 election, this story began to gain currency: gun sales were surging over fears that Barack Obama would be elected because he would take away everyone’s guns. In the days after the election, similar stories began to appear both in the national media (see here and here) and in regional papers too that all said essentially the same thing. One thing about journalists: we love those trend stories especially when other journalists have already declared it a bona fide trend.
I thought about this as I was skimming through the 10Q that Smith & Wesson (SWHC) filed yesterday
Merriman upgraded Smith & Wesson (NASDAQ:SWHC) to Buy from Neutral on valuation after channel checks indicated an increase in gun sales in October after an Obama win became apparent. The firm believes shares can trade up into the $4 to $5 range.
Credit Suisse upgraded Wells Fargo (NYSE:WFC) to Outperform from Neutral citing the company's impr
Because of the news that the U.S. Supreme Court ruled in a 5-to-4 decision that citizens have a constitutional right to keep guns for self-defense, investors have been taking a closer look at the stocks of firearms manufacturers. It is interesting to note that firearms have been used to sell houses [as gifts, not as threats]. A real estate agent offered free guns to real estate buyers. Here are some firearms and weapons companies that may be worth investigating to see if they are worth pulling the trigger on.
One of the two major gun and firearms manufacturers in the United States is Sturm R
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SWHC
About Smith & Wesson Holding Corp
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Just days before the Nov. 4 election, 
