December 18, 2012

Investors turn against gun makers after massacre

The Associated Press

(Continued from page 1)

click image to enlarge

This March 27, 2006 file photo, shows a Bushmaster AR-15 semi-automatic rifle and ammunition on display at the Seattle Police headquarters in Seattle. The maker of the Bushmaster rapid-fire weapon used to kill schoolchildren in Connecticut on Friday, Dec. 14, 2012, was put up for sale on Tuesday, Dec. 18, 2012, as investors soured on the gun business. (AP Photo/Ted S. Warren)

Related headlines

Meanwhile, Dick's Sporting Goods Inc. suspended sales of all "modern sporting rifles," the industry term for military-style guns. The company also removed all guns from display at its store closest to Newtown.

Dick's has not promoted military-style guns as much as some other retailers. Its circular distributed in newspapers on Sunday had a full page of hunting rifles, but no military-style ones.

By contrast, St. Paul-based retailer Gander Mountain featured in its own flier the Black Rain Ordnance PG9, a military-style semiautomatic rifle, for $2,000. Other military-style guns were also advertised, including several from Bushmaster. Such ads are generally printed well in advance and would have been prepared before Friday's shooting.

A Gander Mountain spokesman declined to comment on whether it would change its gun lineup.

Wal-Mart Stores Inc., which offers Bushmaster rifles in some stores, said it would not change the guns it sells, but company spokesman David Tovar said the web listing for the Bushmaster "was taken down in light of the tragic events."

All the talk about additional gun control appeared to be driving increased gun sales, though. The Colorado Bureau of Investigation said it received a record 4,154 requests for background checks on Saturday, the day after the shooting.

That was slightly more than on its normal biggest day, Black Friday.

Bob Irwin, CEO of The Gun Store in Las Vegas, said customer traffic has jumped since the school shooting, with many customers concerned that more gun laws will be enacted. He has not pulled any guns from the shelf.

"My belief is the individual nutcase did this," he said. "The company that manufactured the gun didn't. That seems silly to deprive my normal customers of product because somebody misused a product from the same company."

Irwin agreed that the Connecticut attack demanded some kind of action. He suggested adding more security officers at schools.

Shares in publicly traded gun makers declined for a third-straight day.

Shares of Sturm, Ruger & Co. dropped 7.7 percent to close at $40.60. They have fallen almost 11 percent since Thursday, the day before the shooting. Shares of Smith & Wesson Holding Corp. fell 10 percent to $7.79 — down almost 15 percent from their Thursday close.

Outdoor goods retailer Cabela's Inc. fell almost 6 percent to close at $38.77.

 

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors




Further Discussion

Here at PressHerald.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)