Gun sales have thrived through out the weak economy and gun company stock prices have soared.
But after the massacre at Sandy Hook inConnecticut,the outlook for the firearms industry is less certain, with momentum
building for restrictions on semiautomatic rifles and high capacitymagazines.
“It would remove one ofthe hottest-selling products from themarket place,” said Rommel Dionisio, an analystforWedbush
Securities who covers Smith &Wesson.
Dionisio estimates the U.S. gun industry has as much as $3.5 billion in annual sales.
Gunmaker share prices have slumped in recent days. Smith &Wesson ( ), which more than doubled during the past
year, fell 6% onMonday.
Shares of Sturm, Ruger & Co. ( ) and Cabela’s ( ), a firearms retailer, were also down.
Related: Cerberus to sell gunmaker after massacre
Gun shop owners say that sales have been booming since President Obama’s reelection, driven by concerns that he could
impose further restrictions on firearms.
The recenttragedy could have a similar effect.
JohnKielbasa, owner of Fernwood Firearms in Hankins, NY, acknowledged that”therewas a small [gun sales] spike after the
shooting,” which he attributes to customers who are “worried about gun control.”
They’re also fueled by a desire to protect themselves, he said, noting that some of his customers are women. And while Kielbasa
specializes in military-style tactical rifles, he said that all types of guns are selling.
The Connecticut State Police have identified the primary weapon in the attack that killed 20children and six educators at a
Newtown school on Friday as aBushmaster AR-15 semiautomatic rifle with high capacity magazines. Police said thatthe
shooter also used two semiautomatic pistols — a Glock and a Sig Sauer — before committing suicide
A prior assault weapon ban, which expired in 2004, didn’t eliminate theweapons entirely, but restricted their features, limiting
magazine capacity to 10rounds and regulating pistol grips, bayonet attachments and flash suppressors.
“There’s been a significant shiftto these types of rifles ever since the2004ban was lifted,” Dionisio said.
Obama has indicated that hewill try to bring back restrictions on military-style rifles. In the second presidential debate in the
fall, Obama said hewas going to see “if we can get an assault weapons ban reintroduced.”
On Sunday, Obama, signaled the possibility ofmore action.”In the coming weeks, I will usewhatever power this office holds to
engagemy fellow citizens … in an effort aimed at preventingmore tragedies like this,” said Obama, in a speech at Newtown.
Democratic lawmakers also said they would introduce tougher legislation.
Total recoil: Gun stocks plunge
TheNational Shooting Sports Foundation, a gun industry group based in Newtown, and theNational RifleAssociation of
Fairfax, Va., did not answer requests for comment.
Kielbasa, aBrooklyn native, said thatimposing restrictions on guns won’t necessarily preventtragedies.
“Look at New YorkCity,” he said.”With one ofthe strongest gun laws in the country, people are still getting shot down there.”
