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 AmmoLet'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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV