Louis Navellier, known for his stock selection prowess, is betting on two firearms companies that have been swept up in a nationwide buying frenzy sparked by Americans concerned about President Barack Obama‘s intentions regarding gun control and their safety following terrorist attacks in San Bernardino, California, and Paris late last year.
Navellier said he owns Sturm Ruger and Smith & Wesson, which were both sharply higher Tuesday morning, ahead of Obama’s planned announcement about executive actions he wants to take to restrict gun sales.
“Mr. Obama is the best gun salesman on the planet,” the chairman of Navellier Associates told CNBC’s “Squawk Box,” adding that he has not gotten any pushback from investors concerned about profiting from gun stocks. “They just want us to make money.”
Sturm Ruger (RGR) 12 months
Sturm Ruger was up nearly 90 percent in the past 12 months based on Monday’s close.
Smith & Wesson (SWHC) 12 months
Smith & Wesson was up about 165 percent in the past 12 months based on Monday’s close.
The cornerstone of the president’s plan is a background check requirement for guns purchased from dealers even if they’re bought online or at gun shows. The new federal guidance aims to narrow the so-called “gun show loophole” that allows some purchases without a background check.
Obama believes new gun control measures could help stem the tide of mass shootings in the United States in the wake of the deadly Dec. 2 terrorist attack in San Bernardino. The guns used were originally purchased legally.
Two weeks after the Nov. 13 Paris rampage, more Americans had their backgrounds checked purchasing guns on Black Friday, the shopping day after Thanksgiving, than any day on record, according to the FBI.