Investors are buying shares of firearms manufacturers Sturm, Ruger & Company (NYSE:RGR) and Smith & Wesson Holding Company (NASDAQ:SWHC) in the wake of President Barack Obama’s legislative proposals to curb gun sales.
In mid-day trading, Ruger was up 4.04 percent and Smith & Wesson was up 3.68 percent.
Gun control discussions have resulted in more gun sales, and there may be little in Obama’s proposal to halt that.
While some gun owners are expressing alarm, the manufacturers' group the National Shooting Sports Foundation issued a statement via email that was moderate in tone.
"We support immediate improvements to the National Instant Criminal Background Check System (NICS) that will bring all appropriate mental health and other records, such as restraining orders, into the NICS system," the foundation said. "Fixing NICS must be among the highest priorities in order to help further prevent illegal purchases of firearms from federally licensed retailers."
"We have long supported and are initiating an expanded safety campaign to promote the secure and responsible storage of all firearms and ammunition when not in use," the group continued. "We believe the personal responsibility of gun owners, especially if there are children or at-risk individuals in the home, is central to any meaningful discussion of the issues."
The organization’ statement did not address proposals to band what Obama refers to as assault weapons or to ban ammunition clips holding more than 10 rounds.
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