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Breakingviews: A run on guns

Thursday, December 12, 2013 - 02:22

Dec. 12 - Breakingviews editors discuss why the shooting at Sandy Hook a year ago helped boost gunsmiths' stocks - and how the absence of new laws may bring them bring them back to earth again.

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-- this week marks the anniversary of the terrible elementary school shooting in Newtown Connecticut. Now in addition to that terrible human cost. There's been some -- financial implications well is that it seemed for a while that we would get -- regulation on guns in the US and that's actually been good for government causal hibbett. Rove you've been looking at this this might there be changes. Yet does it mean the actual number of gun. Lost -- they actually loosens up for time moral laws have been loosened the action and strengthened since sandy hook. So what we've seen those years of run up and don't say -- a lot of that huge a huge demand on Africans sales. The united excise tax is about twice as much last years it was any year before 2007 -- and this year is going to be even better the cells and even higher. Based on background checks. And what that's done -- -- that of course the gun makers' shares have totally skyrocketed -- workers kind of -- twice missed lessons quadrupling in past years. The problem is of course is that you know this demand it as the law as people see that the laws are being -- that problem vote. Decreased demand right the other thing is that guns last a long time here you are rightfully can maintaining my last -- times. -- -- So. You have to think at some point people are saying look we got enough I have I don't need all the guns that clip plus players -- no gonna get the rules that until we might get. And -- and then there's also been some self fulfilling prophecies here you know. If you go to story see that you're there are no guns for -- gonna you gonna -- and try to by the first has been an element of that. You can probably see it the distance that's -- the west and they released the results earlier this week that gross margin higher than apple. That shouldn't -- in case you need you making it and differentiated shouldn't be in York post that says this is really turned -- you'll wanted to sort ideas for a twenty foot in yet and yet we're not the first as a big chunk of the shares are actually sold sold short about a quarter of stock for each of them are third and that mean that suggests that a lot of -- girls and -- I -- -- -- -- people you want to single gun control will find this the wrong reasons. But that's the thinking for one of muscles between fourteen. And particularly that a reliable breaking obviously to.

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Breakingviews: A run on guns

Thursday, December 12, 2013 - 02:22

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