Under Fire: The Gun Business

KAPITALL presents UNDER FIRE GUN: THE BUSINESS Private firearm possession in the United States dwarfs that of other countries The estimated total number of guns held by civilians in the United States is 270,000,000 1a) 270,000,000 Let's take a look at how big that number actually is... There are enough privately owned guns in the United States to arm 90% of the population (1][13] 45% of households in the U.S. contain a gun [13] 45% i- Despite making up less than 5% of the world's population, the United States is home to more than one third of the world's civilian-owned guns 12] Recent mass shootings in the U.S. have fueled the resurgent gun control debate MD President Obama has urged Congress to approve a number of legislative measures. Let's take a look at the financial implications of some of those initiatives: 1. Renew lapsed Assault Weapons Ban Sturm, Ruger and Co. saw a 31% decline in sales between 1998 and 2004, when President Clinton's Assault Weapons Ban was in effect 6) 1998 2004 -31% 0% 25% 50% 75% 100% +25% 2004 Conversely, Ruger sales grew 25% between 2004 and 2008 following the lapse of the ban 16] 2008 0% 50% 100% 2. Ban on high-capacity magazines Smith & Wesson closed 2012 up 88%, citing demand for its M&P-branded rifles, which feature a 10 or 30-round magazine 71 +88% 2011 2012 -20% Some analysts think that restrictions on magazine capacities could eat away 20% of Smith & Wesson's business 89 10 3. Criminal background checks on all gun purchases Current federal law requires criminal background checks only for guns sold through licensed firearm dealers 8) There are more than 129,817 federally licensed firearms dealers in the United States. McDonald's Restaurants Firearms Dealers McDonald's restaurants in the U.S. (2011): 14,098 19) Firearms dealers in the United States: 129,817 The FBI ran more than 19.5 million background checks in 2012, a year-over-year increase of more than 3 million (12) Still, licensed dealers account for just 60% of all gun sales in the United States (81 SED 60% 40% 4. Closing the "The Gun Show Loophole" A loophole in federal law allows individuals to sell firearms at gun shows and in "private sales" without a license and without processing any paperwork 181 The measure is likely to propose that independent gun dealers force buyers to go through certified background checks, which could end up driving more foot traffic to big retailers like Walmart. (10) The rush to buy guns Walmart sells guns at 1,750 of its 4,602 stores and is likely the single biggest firearms seller in the U.S (1) EEFE Walmart reported that gun revenue gained 76% in the first half of this fiscal year while ammunition sales increased 30% [10] 76% 30% Outdoor retailer Cabela's reported that hunting equipment, which includes firearms, mad of the chain's sales in 2011 (101 up 41% 41% How will gun stocks fare as the national gun debate heats up? Gun manufacturing: Olin. ATK RUGER Smith&Wesson Alliant Techsystems Inc. Smith & Wesson Olin Corp. Sturm, Ruger and Co. Holding Co. Gun retailers: DICK'S Cabelas Walmart * SPORTING GOODS, Dick's Sporting Goods Inc. Wallmart Stores Cabela's Inc. Inc. (1] http://www.gunpolicy.org/firearms/region/united-states [2] http://www.guardian.co.uk/news/datablog/2012/jul/22/gun-homicides-ownership-world-list [6] http://www.dailyfinance.com/2013/01/18/gun-ban-weapons-manufacturers-no-protest/ [7] http://www.foxbusiness.com/industries/2013/01/15/gun-control-th reatens-to-derail-record-sales/ [8] http://www.csgv.org/issues-and-campaigns/gun-show-loophole [9] http://abcnews.go.com/US/guns-america-statistical/story?i d=17939758 [10] http://business.time.com/2013/01/11/walmarts-on-again-off-again-relationship-with-guns/ [11] http://finance.yahoo.com/blogs/the-exchange/ businesses-react-newtown-tragedy-190318407.html [12] http://www.cnn.com/2013/01/02/us/background-checks-guns/index.html [13] http://www.theatlantic.c om/international/archive/2012/08/its-official-western-europeans-have-more-cars-per-person-than-americans/261108/ ©2013 Kapitall, Inc. Kapitall Wire is a divi- sion of Kapitall Inc. Content is intended for educational information purposes only and should not be construed as an offer to buy or sell securities or any other prod uct service provided by Kapitall Inc., and its affiliates companies. Brought to you by KAPITALL 666'E$ SALE OSPS