MSN.COM
Shares of the two publicly traded gun makers rallied on Monday, a day after President Barack Obama gave a prime-time address calling for a modest reduction in the availability of firearms.
Both Smith & Wesson and Sturm Ruger & Co. rose over 7% on Monday.
Smith & Wesson has climbed 116% this year and Sturm Ruger has jumped 69%.
Obama on Sunday night said no one on the no-fly list should be able to buy a gun and that it should be harder for people to buy powerful assault weapons like the ones used in the San Bernardino massacre.
But with Congress in paralysis on the issue, the logic on Wall Street is that the increased talk of gun restriction will spur more sales, as has happened in previous instances.
Though the U.S. doesn’t keep a tally on gun purchases, the National Instant Criminal Background Check System maintained by the Federal Bureau of Investigation serves as a proxy of sorts.
Background checks surged 39% in December 2012, the month of the Sandy Hook Elementary School shooting, and at 2.78 million is the highest month on record.
Background checks fell in 2014, but have been stronger this year, with November seeing the highest number of checks in 20 months.
