Two Pistol-Packing Stocks
Right now not even the most popular stocks with the most popular products are setting new stock price records.
All I can say is "go figure!" I sold my shares of NYX at $32.17 Thursday and I won't look back.
Back on Nov. 2 I recommended in investors begin accumulating NYX when it was around $25.30 per share. Just to keep me humble the stock proceeded to correct and hit an intraday low of $22.25 on Nov. 14.
Even a broken clock is right twice a day so seeing NYX ascend above $33 Thursday seemed like cruel irony, considering the Mayan calendar supposedly tells us that the world as we know it will be ending today. As Shakespeare wrote in Hamlet, there's a time when every investor suffers "the slings and arrows of outrageous fortune" and asks that ambivalent question, "To be or not to be?"
Before I get too eloquent, there's another investment theme unpopular right now and has some negative feelings attached. With the recent tragedies each involving what appears to be one rogue gunman wreaking havoc, the idea of investing in firearm companies isn't a very popular one.
Putting emotions aside, one can't help notice a monumental demand for firearms and ammo. One headline sums it all up : Guns Sold Out at Wal-Mart as Ammo-Magazine Sales Surge.
That may indicate a good buying opportunity for WMT and EBAY, but from my perspective it opens the way for a better investment idea with Sturm, Ruger (RGR) .
In the aftermath of the November elections and the recent mass tragedies there's obviously a kind of anti-crime, pro-2nd Amendment to the U.S. Constitution surge. One friend told me recently he went to Dick's Sporting Goods (DKS) to buy some hollow-point bullets for his target pistol and was told they'd been sold out for two days. When asked when new supplies would arrive the salesperson said, "Soon, we hope."
Sturm, Ruger offers single-shot, auto-loading, bolt-action, and sporting rifles, shotguns, rim fire auto-loading and center fire auto-loading pistols and single-action and double-action revolvers. The company also manufactures and sells accessories and replacement parts for its firearms.
Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.
In addition, RGR provides investment castings made from steel alloys directly or through manufacturers representatives. The company sells its firearm products through independent wholesale distributors to the commercial sporting market under the Ruger name and exports its firearms through a network of commercial distributors and directly to law enforcement agencies and foreign governments. Sturm, Ruger was founded in 1948 and is based in Southport, Conn.