September FBI background checks were down a bit compared to previous months. But a business analyst sees more room on the upside for the firearms biz, and specifically for gun maker Smith and Wesson:
Analyst Mike Greene with The Benchmark Company cites three factors behind continue growth in gun sales:
The first is political buying. Before the election, people are buying because they think that, if re-elected, President Obama might go after more firearms regulation.
The second is economic... with the "anarchy trade" people are thinking crime rates might go up in a poor economy.
But the third thing we think is very important is the growing social acceptance of firearms use for both personal defense and recreational purposes. One of the biggest ways we've seen this is in female firearms ownership. It's been up significantly over the past couple of years.