The Gun Craze is Just Getting Started
I know Fools that followed me into this trade are wondering when to get out of it. SWHC is up over 110% since I posted on it 17 Feb 09.
I took out some of my leveraged, but I am not getting out of this trade based on a price, but more on a time line or specific events I expect to see in the coming months.
My WAG is the gun craze is just getting started, in 6-12 months it will get nuts, IMHO
Some things I am looking for:
1. You will see people camping outside of sporting good stores waiting for ammo shipments
2. Jim Crammer will do a show on guns
3. A new IPOs on ammo makers are created
4. Families will put down their PS3, XBOX 360s etc... and will be going to the gun range
5. There will be more sporting events and shows about guns coming to a theater near you
6. Factories will re-tool to produce ammo and guns
7. Tariffs will block out foreign weapons imports.
Again for you Fools, that do not buy into this story, just wait, you will see.
Reuters is telling us what Fool already knows:
In American crisis, anger and guns:Bernd Debusmann
By Bernd Debusmann
WASHINGTON, March 19 (Reuters) - In the first two months of this year, around 2.5 million Americans bought guns, a 26% percent increase over the same period in 2008. It was great news for gun makers and a sign of a dark mood in the country. Gun sales shot up almost immediately after Barack Obama won the U.S. presidential elections on November 4 and firearm enthusiasts rushed to stores, fearing he would tighten gun controls despite campaign pledges to the contrary. After the November spike, gun dealers say, a second motive has helped drive sales: fear of social unrest as the ailing economy pushes the newly destitute deeper into misery.
My posts on Guns here:The Solution. What is more rare, harder to find then gold and the consumer is buying at a high premium?
March 22, 2009 Violence Until Debt Jubilee and Jim Rogers (03 Mar 09)
March 06, 2009Net Long the US Market! (Ultra-shorts and Guns and Ammo)
March 05, 2009
Obama Promises To Stop America's Sh-tty Jobs From Going Overseas.
Detroit: Homicide Down, No One Left to Kill
March 03, 2009
Barron's writes what Fooldom Knows, the Consumer is Buying Guns and Ammo; Faber and Rogers Opine
March 01, 2009 When in Africa do as the Africans. Long SWHC and RGR
February 25, 2009
Long Smith & Wesson Holding (SWHC). Top Ten Story: Guns and the Constitution: A legislator finally gets it
February 17, 2009