The Gun Makers in Your Fund Portfolio - By JEFF SOMMER NYTimes.comQuicklink submitted by Susan Lee Schwartz Permalink
|'IF you comb through your 401(k) carefully enough, there is a good chance you'll find something startling: a stock that returned more than 80 percent over the last year.What's wrong with this picture? Nothing at all -- unless it troubles you that the company makes guns... Smith & Wesson's products are beloved by many gun enthusiasts, and its shares have been soaring. They rose 5.7 percent on Wednesday, the day of the president's announcement, and 8.3 percent for all of last week. The company's stellar stock return reflects a nationwide boom in sales of guns and ammunition, set off in part by 'concern among gun buyers that new regulations will make guns harder to buy down the road,' says Rommel Dionisio, who analyzes the stock for Wedbush Securities. Motivated by a desire to stockpile arms and ammunition while they are still available, people appear to be speeding up purchases.'|
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