This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

6 Companies May Profit From Increased Gun Exports

Stocks in this article: SWHCRGROLNGDLMTUTX

NEW YORK (TheStreet) -- On Tuesday, I opened up my copy of the Wall Street Journal and staring back at me on the front page are the words "White House Efforts to Relax Gun Exports Face Resistance."

Huh? How did I miss the memo about the Obama administration no longer trying to take all our guns away?

Sure enough, as I read through the article it appears, at least at face value, that the Obama administration has stated they want to increase employment with this initiative.

Currently, American defense manufacturers face a disadvantage against foreign competitors due to burdensome bureaucracy and regulations. The idea is to help level the playing field.

Promoting existing profitable businesses appears to be a much better long-term solution compared to selecting winners and losers with hundreds of millions of taxpayer dollars. The bankrupt Solyndra quickly comes to mind as an example of what not to do.

Reading further into the article, it appears the main resistance comes from the U.S. Department of Homeland-Security. This appears at least a little odd that an executive department is opposed to the idea, while the president is publicly promoting it.

I have to believe the topic "came up" at some point earlier, which means some posturing is going on. With an election right around the corner it can be challenging to see through the fog, but at least we can look at what companies are likely to benefit from greater gun exports.

6 Stocks to Benefit From Truckers' Switch to Natural Gas >>

Using the word "gun" in a title is a much better attention-grabber than "arms" or "military equipment" (it caught your attention right?), so it's understandable why the Wall Street Journal used "gun" instead of "military equipment." However, the effort extends much further than just guns.

I created a list of companies that are unlikely to fall in value if nothing happens, yet have significant sales if allowed to increase sales. It's a "heads I win, tails I break-even" type of toss, and one I take advantage of every time one comes my way.

Investor Ammo

Let's look at six companies that are likely to benefit:

Smith & Wesson (SWHC) and Sturm Ruger & Co. (RGR) are totally hitting bullseyes. Increasing exports would simply be moving the target a little closer for either one.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs