Breakingviews

Rob Cox: Why Remington’s investors shouldn’t sell

May 19, 2015

Gun safety groups and Snoop Dogg pressured Cerberus to cleave the maker of a notorious assault rifle from its funds. Now Cerberus can get back to work raising money. Social activists need to behave more like their shareholder brethren to have any hope of changing this business.

Rob Cox: Good news for guns is bad for gunmakers

November 18, 2014

A Republican U.S. Senate puts a bullet in new federal firearms controls. Yet Colt, maker of the gun that won the West, is short of cash, Moody’s downgraded Remington and shares of Ruger and Smith & Wesson have been clobbered. The industry does better with guns in a corner.

Gun bubble reloads on Obama re-election fears

April 3, 2012

The president’s 2008 victory triggered massive growth in firearms sales. Purchasers thought strict gun control legislation was coming. It never arrived, and weapon sales tumbled. Yet the prospect of a second Obama term is boosting sales - and shares of gun-makers - once again.

Congress should push for mandatory gun insurance

December 17, 2012

Firearm ownership is a U.S. constitutional right. But it comes at a cost. Requiring liability coverage could pass legal muster while helping to compensate victims. The market might also do a better job than politicians at keeping the most dangerous weapons from unstable hands.

Market signals turning point in U.S. gun debate

December 18, 2012

Private equity isn’t known for squeamishness - or for dumping promising investments. So it’s significant that Cerberus is selling firearms maker Freedom Group following the Newtown school atrocity. Gunmakers’ shares are plunging, too: big money is betting on tougher restrictions.

Gunsmith finds cold shoulders on Wall Street

April 17, 2013

Financiers typically turn away fees as willingly as dogs give up steaks. But major banks are leery of financing bids for Freedom Group for fear of damaging their reputations. Making assault rifles has joined pornography on the list of activities with risks that money can’t hide.

Fading reform hopes take gun shares with them

December 11, 2013

As the chances of new firearms legislation dissipate a year after the Sandy Hook school shooting, so too should the anxieties that propelled gun sales and the stocks of Smith & Wesson and Sturm, Ruger. Short sellers already have their sights set on a downturn.