After Orlando Shooting, Gun Makers See Profit Spike

Susanne.Posel-Headline.News.Official- pulse.nightclub.orlando.mateen.nra.gun.sales.smith.wesson.sturm.ruger_occupycorporatismSusanne Posel ,Chief Editor Occupy Corporatism | Media Spokesperson, HEALTH MAX Group

 

In the wake of the death of 50 people at the Pulse Nightclub in Orlando, Florida, gun manufacturers such as Smith & Wesson, Sturm, and Ruger have seen a spike in sales that has far exceeded profit margins since 2011.

Shares for the companies rose by 11.6% and 9.6% on the trading markets earlier this week.

Thanks to this tragedy, Smith & Wesson have enjoyed an uptick of more than 600% while Sturm, Ruger have seen a 200% sales spike.

Experts attribute this rise in gun sales to the need to feel safe. Following an attack such as in Orlando, Americans begin a pattern of comfort that includes acquiring firearms.

This phenomenon is called loss aversion . It is an economic theory that explains “people’s tendency to strongly prefer avoiding losses to acquiring gains.”

Applied to this tragedy, loss aversion could explain why American are purchasing guns – because they are scared of losing the status quo when it comes to gun laws.

P. James Debney, chief executive officer for Smith & Wesson, is happy that firearms have found “their way back into the world of politics” because with discussion over “increasing legislation [on] gun control” will simply spur “on the consumer into a very strong buying period for sure.”

Three years ago, after a meeting with the president and vice president to talk about gun control, the National Rifle Association (NRA) released a statement saying that “we attended today’s White House meeting to discuss how to keep our children safe and were prepared to have a meaningful conversation about school safety, mental health issues, the marketing of violence to our kids and the collapse of federal prosecutions of violent criminals.”

In the wake of the Sandy Hook shooting, the NRA chided the Obama administration for using the tragedy as justification for blaming “law-abiding gun owners . . . for the acts of criminals and madmen.”

This meeting caused a reverberation within the gun owners of America which pushed ammunition sales through the roof and resulted in shortages in retail.

For the NRA, Sandy Hook meant an increase in membership – from 4.1 million to 4.2 million.

Earlier this year the NRA hype began to affect Wall Street; making bankers very happy.

Louis Navellier, a money manager with Navellier & Associates, invested in Smith and Wesson, and Sturm, Ruger & Company, which has turned out to be very lucrative as prices for these corporation’s stock have soared.

Navellier appeared on CNBC to brag about his winnings, saying: “Mr. Obama is the best gun salesman on the planet.”

For this Wall Street banker investment in gun stocks is a pure advantage taken because of the upset by republicans who believe they will lose their 2nd amendment rights.

Navellier explained: “Everybody is so desperate for earnings. The strong dollar is crushing company earnings. As a professional manager, I’m looking for companies with real sales and real earnings.”

In that same week, stock shares for Smith & Wesson were up more than 6% in premarket trading.

Smith & Wesson are expecting sales to reach between $175 and $180 million by the end of January. And for the end of April, the company was projecting revenue for the company of an upwards of $660 million.

And since “nobody told [Naveiller] not to buy guns”, he sees this controversy as a way to make a lot of money.

This spike was thanks in large part to the hype created by conservative and alternative media, guns sales for Christmas saw a huge upward rise of 24% over 2014. On Black Friday alone, the Federal Bureau of Investigations (FBI) processed 185,345 background checks for firearms.

Front and center was the NRA leading the charge against any measures to tighten existing gun laws.

Since this mega-lobby group has paid off so many of the lawmakers on Capitol Hill, the NRA is now digging in its heels against the president’s decision to choose executive orders, saying that he is “defying the will of the people and using executive action”.

The NRA used their familiar battle cry and succeed in convincing lawmakers that gun control laws created by the Obama administration were aimed “primarily at law-abiding American gun owners,” and that “prohibiting the possession of firearms doesn’t stop criminals from illegally acquiring them,” and that the bills were “sponsored by gun control extremists.”

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