Smith & Wesson Is Falling Hard And The Worst Part Is No One Really Knows Why
$SWHC continued its descent today. The stock has closed lower each day for the past five days and is poised to do it again. It’s down more than 13% in the past two weeks.
The action in the firearm manufacturer’s stock is frustrating investors who don’t see news from the company that would justify the declines. $SWHC reported earnings for its second fiscal quarter in December and won’t reveal quarterly results again until March.
Jan. 27 at 12:24 PM
Jan. 24 at 4:08 PM
Some of the problem appears to be the legislative landscape. California passed an “Unsafe Handgun Act” that requires gun makers to adopt technology on newer guns that would stamp bullets with a code once discharged. The code would help police trace bullets back to specific guns and, ideally, the person who fired. Smith and Wesson said last week that it would not sell new guns in California as a result.
Some investors may also be nervous about a movie coming out that the producer, Harvey Weinstein, has claimed will make the gun industry wish for death. Weinstein announced the nameless movie earlier this month.
Jan. 17 at 10:01 AM
However, the sentiment tide may be turning. About 67% of Stocktwits users are bullish on the stock and short interest is decreasing. Short interest stands at about 11.08% of the float, according to data from shortsqueeze.com
In its guidance, the company estimates net sales for the third quarter of fiscal 2014 to be between $140 and $145 million. It anticipates earnings of $0.28 to $0.30 per share.
~ via Catherine Holahan (@cholahan)
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