“Moms Demand Action” Pressuring Investment Firms to Drop Gun Stocks Despite Enormous Gains
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If you bought stock in gun companies towards the end of 2012 you’re stock portfolio is probably looking pretty good right now. Smith and Wesson’s stock alone is up almost 40% since the end of 2012 and is showing signs of going even higher.
That fact, however, isn’t stopping the anti-gun group Moms Demand Action from pressuring investment managers and funds to drop gun investments from their funds.
So MDA wants people whose job it is to invest and protect people’s money to drop one of the top performing investments of the year based on an emotional argument? No, that’s not crazy at all.
“There are many ways to address the epidemic of gun violence in America, including changing federal and state laws, and pressuring American businesses to put in place policies that protect their customers,” said Shannon Watts, MDA founder.
I’m sure all of those investment clients will be completely fine with losing money on their investments as long as they aren’t investing in those icky gun companies.
Some activists have been successful in getting some funds to drop gun companies from their portfolios.
Six months after launching a national divestment campaign against manufacturers of assault weapons and high-capacity ammo clips, Public Advocate Bill de Blasio announced eight hedge funds and money managers have completely divested their gun holdings, valued at $150 million. Fourteen more firms have scaled back their gun investments by 7.4 million shares—27 percent of their holdings.
According to a report on Guns.com,
Putting things into perspective, the total industry’s revenue in 2011 was $3.6 billion and $3.7 billion in 2012. The total revenue generated, including jobs and supporting business is estimated to be at least $12 billion. It’s anybody’s guess as to what the industry will post for this year, but it’s certain to be quite a bit more.
According to preliminary NICS background check data, as well as a simple visual check of stock levels at various gun vendors, it’s obvious 2013 will be the highest grossing year for the gun industry ever. In fact, just halfway through the year, it’s possible 2013 is already one of the best years for the gun industry ever.