Every couple of years this cycle repeats and this year it has some momentum. Gun sales are going through the roof again as anti-gunners ramp up their activity.
New positions are only added on Wednesday and Saturday except in special circumstances.
NEW BULLISH Plays
AOBC - American Outdoor Brands - Company Profile
American Outdoor Brands Corporation designs, manufactures, and sells firearms worldwide. The company's Firearms segment offers handguns, long guns, handcuffs, suppressors, and other firearm-related products under the Smith & Wesson, M&P, Performance Center, Gemtech, and Thompson/Center Arms brands. It also sells parts purchased through third parties; operates a private law enforcement training facility; and provides manufacturing services to other businesses under the Smith & Wesson and Smith & Wesson Precision Components brands. This segment sells its products to gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies. The company's Outdoor Products & Accessories segment offers reloading, gunsmithing, and gun cleaning supplies; stainless steel cutting tools and accessories; flashlights, tree saws, and related trimming accessories; shooting supplies, rests, and other related accessories; apparel; vault accessories; laser grips and laser sights; and a range of products for survival and emergency preparedness, as well as field rests, knives, gun vises, hearing protection products, camping and survival gears, and case tumblers. It provides its products under the Caldwell, Wheeler, Tipton, Frankford Arsenal, Smith & Wesson, M&P, Thompson/Center, Lockdown, Hooyman, BOG-POD, Golden Rod, Non-Typical, Crimson Trace, Imperial, Schrade, Old Timer, Bubba Blade, UST, and KeyGear brands. The company markets its products through dealers, retailers, in-store retail channels, and range operations; social and electronic media; in-store retail merchandising systems and strategies; and Websites and online retail stores. The company was formerly known as Smith & Wesson Holding Corporation and changed its name to American Outdoor Brands Corporation in January 2017. The company was founded in 1852 and is based in Springfield, Massachusetts. Company description from FinViz.com.
Every time some idiot goes berserk with a firearm the anti-gun crowd ramps up their attack on lawful gun owners. It does not seem to matter that 270 million gun owners in the US have not broken the law but they want to change the laws because of individuals that don't obey the laws anyway. Murder is against the law, but these violators do not care.
The ensuing efforts to ban guns always sends millions of people into the gun stores to buy guns while they are still legal. The stocks of gun makers rally for 6-9 months and then fall back into dormancy.
The shooting in New Zealand and others have triggered the current wave of proposed laws. The FBI reported that Federal background checks rose from 2,053,886 in February to 2,644,851 in March. That is the biggest spike in Feb-Mar number since the reporting began in 1998. April is likely to be even larger.
Shares of Ruger gained $3 for the week and AOBC, formerly Smith and Wesson, closed at a two-month high. As these numbers are more widely reported and the April numbers show another increase, the gun stocks are likely to continue higher.
Earnings June 6th.
Buy AOBC shares, currently $9.97, stop loss $9.50.
Optional: Buy June $11 call, currently 35 cents, no stop loss.
NEW BEARISH Plays
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