Gun Stocks to Purchase in Response to

Defunding Police, Looting and Shooting

By Paul Dykewicz, www.stockinvestor.com
Gun stocks to purchase in response to local governments defunding their police,
allowing looting and not stopping increased shooting should benefit from a record
3,931,607 firearms background checks filed in June with the National Instant Criminal
Background Check System (NICS) of the Federal Bureau of Investigation (FBI).

The gun stocks to purchase also include the ammunition companies that supply the
bullets for the firearms, with some investment experts preferring to profit that way during
these volatile times, since the projectiles must be replenished after a weapon depletes
its supply during target shooting at a firing-range. The monthly FBI background check
numbers serve as a proxy for gun sales and indicate interest in owning firearms has
soared to new heights since the agency began keeping those records in November
1998.

Fear Fires up Investors to Purchase Gun Stocks

Fear seems to be a huge factor. For example, the Minneapolis City Council voted on
Sunday, June 7, to abolish and rebuild its police department after concluding it could not
be reformed following the death of George Floyd, an African-American man who
succumbed when a police officer kneeled on his neck for more than eight minutes and
ignored pleas from the victim that he could not breathe. On the scene were three other
officers, including two rookies, who did not stop the senior policeman from continuing to
constrict Floyd’s breathing.

Minneapolis Mayor Jacob Frey, who called the ill-fated police work of that
situation flawed on every level, approved the police commissioner’s firing of
all four officers involved but opposed the City Council’s vote to abolish the
entire department rather than identify and fix specific problems. The City
Council’s wisdom further can be questioned in light of Minnesota Gov. Tim
Walz’s May 30 call for the full mobilization of the Minnesota National Guard
for the full first time in its 164-year history to quell violent civil disturbances in
the Twin Cities of Minneapolis and St. Paul when local police became
outnumbered by rioters who he estimates caused more than $500 million in
damages. 

Minneapolis is far from the only major city in which local officials have called for
defunding police without providing studies or analysis about the impact it would have on
the deployment of officers, response times to calls for service and on community and
neighborhood safety. New York, Chicago, Los Angeles, San Francisco, Oakland,
Denver and Milwaukee are other cities where moves to defund the police are occurring.

Uncontrolled Violence and Destruction Fuel Interest in Gun Ownership

Floyd’s death not only triggered protests and civil unrest in Minneapolis but in the
victim’s hometown of Houston, as well as other big cities that included New York,
Chicago, Los Angeles and Washington, D.C.
The Maryland National Guard, sent by Gov. Larry Hogan at the request of U.S. Defense
Secretary Mark Esper, served unarmed in the nation’s Capital to support the District of
Columbia National Guard along the National Mall by standing in front of and protecting
historical landmarks. They safeguarded the Lincoln Memorial, the Martin Luther King Jr.
Memorial, the National Museum of African American History and Culture, the
Washington Monument, the Thomas Jefferson Memorial, the National World War II
Memorial and the Vietnam Veterans Memorial.
Insert photo of the Lincoln Memorial protected by Maryland National Guard members:
https://www.dvidshub.net/news/372095/presence-through-darkness-maryland-soldiers-
stand-watch.

In Washington, D.C., the expense of supporting local law enforcement with the
National Guard of 11 states that supplemented D.C. National Guard members
reached $21.1 million, as of June 12, without including any Air National Guard
aircraft that were used to transport service members. The 10 states other
than Maryland that supplied guardsmen to assist with peacekeeping in the
District of Columbia were Florida, Idaho, Indiana, Missouri, Mississippi, New
Jersey, Ohio, South Carolina, Tennessee and Utah.
Insert photo of the a second national landmark protected by Maryland National Guard
members:
https://www.dvidshub.net/news/372095/presence-through-darkness-
maryland-soldiers-stand-watch

The call to service for the Maryland National Guard came after protesters descended on
federal park land and unlawfully pulled down a statue of Albert Pike, broke it and set it
ablaze, defying the plan of D.C. Delegate Eleanor Holmes Norton, who had introduced
a U.S. House Resolution calling for its preservation, removal and possible placement in
a museum. No damage occurred to any statues, monuments or memorials during the
multi-day service of the 120 Maryland National Guard’s citizen-soldiers. The federal
government will pay the $120,000 expense for the Maryland National Guard’s
protection, June 3-7.

Insert photo of a third national landmark shielded by Maryland National Guard

members:

https://www.dvidshub.net/news/372095/presence-through-darkness-maryland-soldiers-
stand-watch

The statute of Pike, a now-deceased leader of the Free Masons in Washington, D.C.,
shows him wearing civilian clothes, but he also served in the Confederate Army as an
officer during the Civil War. That latter role sparked recent interest in removing the
statue from public land, along with one in Richmond, Virginia, of Gen. Robert E Lee, as
well as others depicting former Confederate Army leaders. A review board in Richmond
agreed to a plan to lower the 13-ton monument of Lee to the ground by a crane, to cut
the artwork into three pieces and to reassemble it elsewhere, since the statue otherwise
is too tall to go under any bridges.

Unlawful Removal and Damage of Statues Includes Religious Figures and Sites

Certain protests have turned violent and destructive, with attacks on police, law-abiding
citizens and religious figures and sites, $500 million-plus of property damage in
Minnesota alone, looting, shooting and senseless murders. Many protesters also
jeopardized their health amid the COVID-19 pandemic by failing to social distance and
wear protective masks, as recommended by public health experts to avoid spread of the
infection.
“The looting in many American cities has reminded everyone that the police cannot be
everywhere at all times,” said Jim Woods, who leads the Successful
Investing, Intelligence Report and Bullseye Stock Trader advisory services. “That
means it is incumbent upon the citizen to provide for his or her own protection — and
that means responsible gun ownership.”

Woods told me he prefers small-cap ammunition maker AMMO, Inc. (POWW) as his top
recommendation among gun stocks to purchase. Shares in POWW have risen nearly
200% so far this year, he added.

Chart courtesy of  www.StockCharts.com

“The company’s patented, non-incendiary illuminating rounds have become a favorite of

law enforcement, the military and gun enthusiasts,” Woods said.
Jim Woods tests AMMO, Inc.’s Streak non-incendiary visual ammunition near the company’s
headquarters in Scottsdale, Arizona.

Interest in buying gun stocks began to grow in March after governors around the
country imposed restrictions as the number of COVID-19 cases and deaths began to
spread alarmingly along with social unrest. The gun stocks to purchase stand out for
their potential in an industry that has taken on increased importance as tensions rose
amid lockdowns, business closings and rioting that sometimes accompanied protests
for racial equality.

Baltimore Native Is One of Many Women Buying Guns for Personal Safety 

My former colleague, Baltimore native Emily Miller, became a gun owner years ago
after money was stolen from her purse during a home invasion in Washington, D.C. She
later overcame what she described as daunting gun registration obstacles in the District
of Columbia to finally gain ownership of a firearm to protect herself.
A cum laude graduate from Georgetown University’s School of Foreign Service who
served as a spokeswoman for former Secretary of State Colin Powell, Miller described
her ordeal as a crime victim, fear of what may happen next and decision to learn how to
use and buy a gun in her book, “Emily Gets Her Gun.” Miller, petite, athletic and strong-
willed, chose to learn how to defend herself, and she is far from alone with violence
increasingly raging in America’s largest cities.

One female friend told me seven other women recently joined her at a gun range to
learn how to shoot firearms. Each of the women took and passed a test to gain eligibility
to apply to purchase guns, even though none had prior experience with such weapons.

Smith & Wesson Brands Is 1 of the 4 Gun Stocks to Purchase 

Bryan Perry, who leads the Cash Machine, Premium Income, Quick Income Trader, Hi-

Tech Trader and Breakout Profits Alert advisory services, told me he likes Smith &
Wesson Brands Inc. (NASDAQ:SWBI), a Springfield, Massachusetts-based
manufacturer of firearms and ammunition, along with Sturm Ruger & Co. (NYSE:RGR),
a Southport, Connecticut, a provider of guns for hunting, target practice and home
protection.

Smith & Wesson announced on June 1 that it will split from American Outdoor Brands,
Inc., creating a firearms business and a separate outdoor products and accessories
provider. The spin-off of the outdoor products and accessories business will occur as a
tax-free stock distribution to its stockholders in late summer 2020, with the formation of
two independent publicly traded companies: Smith & Wesson Brands, Inc., and
American Outdoor Brands, Inc.

“We believe that separating into two independent public companies will allow each
organization to better align its strategic objectives with its capital allocation priorities,”
said Chairman Barry M. Monheit, in a statement. “We also believe that this action will
give the investment community clearer insight into the value creation potential in each of
these independent companies, ultimately driving enhanced stockholder value.”
Chart courtesy of  www.StockCharts.com

Sturm Ruger & Co. Makes List of 4 Gun Stocks to Purchase

Sturm Ruger & Co., a firearm manufacturing company, produced quarterly results in

May that topped analysts’ estimates as revenue grew more than 8% on a year-over-
year basis to reach $123.6 million, while earnings per share gained nearly 18%. The
stock also offers a 1.02% dividend yield.

Chart courtesy of  www.StockCharts.com

Paul Dykewicz interviews Bryan Perry at the MoneyShow in Orlando, Florida.

Another Sharpshooting Company Earns Spot Among 4 Gun Stocks to Purchase

“Gun stocks can be tricky because people tend to stockpile weapons ahead of a
perceived threat to regulate or restrict ownership,” said Hilary Kramer, host of a national
radio program called “Millionaire Maker.”
Columnist and author Paul Dykewicz  interviews money manager Hilary Kramer, whose premium advisory
services included  2-Day Trader, IPO Edge, Turbo Trader, High Octane Trader  and  Inner Circle.

As a result, traditional gun stocks perform best in the market when lobbying efforts to
control weapons are most vocal, continued Kramer, who leads the Value
Authority and GameChangers advisory services. Gun sales tend to slow when such
efforts and threats to America’s Second Amendment rights to keep and bear arms fade,
she added.

Olin Corp. Ranks Among the 4 Gun Stocks to Purchase

Kramer said her favorite gun stock is Olin Corp. (NYSE:OLN), which pays a 7.5%
dividend yield and has been making Winchester cartridges since 1931. As a result, even
if the stock goes nowhere, which she said was unlikely, investors should be rewarded
for their patience. 
Chart courtesy of www.StockCharts.com

“OLN hasn’t cut its dividend or missed a payment in a quarter century,” Kramer said. “I
see no reason for that to happen here.”

Bob Carlson, leader of the Retirement Watch advisory service and chairman of the

Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with
more than $4 billion in assets, said a problem with buying gun and ammunition stocks is
that they are more prone to boom-and-bust cycles than other equities.

“Going back to early in the Obama administration, the industry had periods when sales
exceeded demand because of worries that strong gun control regulation would be
enacted,” Carlson said.
Pension fund Chairman Bob Carlson answers questions from Paul Dykewicz during an interview before social
distancing became the norm after the outbreak of COVID-19.

COVID-19 Creates Further Havoc as Interest Grows in Gun Ownership

The Forecasts & Strategies investment newsletter of Mark Skousen, PhD, also follows
gun stocks but has no current recommendations. He likes to find bargain valuations or
growth stocks that are just starting to take off, as well as dividend-paying investments.
Mark Skousen, a descendant of Benjamin Franklin, meets with Paul Dykewicz in Philadelphia.
Skousen’s premium investment services consist of Home Run Trader, Five Star Trader, TNT
Trader and Fast Money Alert.

The fallout of COVID-19 has led to 13,734,518 cases and 588,149 deaths globally,
along with 3,559,899 cases and 138,185 lives lost in the United States, as of July 16.
America has more than double as many cases and deaths of any other nation, including
China, where COVID-19 originated. 

In addition, a one-day spike in cases recently occurred in Florida, Georgia, Idaho,

Tennessee and Utah, following recent public protests, reopening of businesses and
resumption of activities in which many people passed up using protective masks and
failed to social distance, as advised by public health officials. In Florida, at least 56
intensive care units at hospitals had hit capacity on June 7 and another 35 ICUs had
less than 10% of their capacity left, according to the state’s Agency for Health Care
Administration. 

These gun stocks to purchase give investors a chance to profit amid the civil unrest that
has gripped the country in recent months.  As so-called non-essential businesses begin
to recall many workers who were laid off during the recent lockdowns, investors who
purchase their favorites among these four gun stocks may be able to provide their
portfolios with a boost in the face of the current turbulent times.

To read the rest of Paul’s investment columns, please click here. 

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning

journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business
Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other
publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the
editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a
columnist. He further is editorial director of Eagle Financial Publications in Washington,
D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free
e-letters and other investment reports. Paul previously served as business editor of
Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book,
“Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a
foreword by former national championship-winning football coach Lou Holtz. The book
is endorsed by Joe Montana, Joe Theismann, Ara Paseghian, “Rocket” Ismail, Reggie
Brooks, Dick Vitale and many others.