Leading US gun manufacturer, Smith & Wesson, has reported a surge in stock value following news that president Obama plans to implement gun control measures that don’t require congressional approval.
Circumventing the political deadlock in Congress, president Obama met with attorney General, Loretta Lynch, to announce a new executive order that will limit the availability of firearms by introducing background checks on buyers and force more sellers to have a license.
The move has proven hugely beneficial for Smith & Wesson whose stock prices jumped almost seven per cent in the hours following the news of the regulation changes.
It follows on from a year in which the company more than doubled in market value. In its trading update for the three months ending 31 January it expected sales to be about $175m-$180m however the backlash from gun enthusiasts against the anti-gun movement has boosted sales, resulting in Smith & Wesson to up the figure to $150m and $155m.
The company said that the increased sales has made it difficult to keep up with the demand as its sell-through rate of its products at distribution has been “stronger than originally anticipated, resulting in reduced distributor inventories of its firearms".
In a tweet previewing the changes Obama said that “the gun lobby may be holding Congress hostage, but they can’t hold America hostage. We can’t accept this carnage in our communities.”
The gun lobby may be holding Congress hostage, but they can't hold America hostage. We can't accept this carnage in our communities.
— President Obama (@POTUS) January 4, 2016
Tomorrow, I'm taking action to reduce gun violence and save lives - protecting the Second Amendment and our kids. pic.twitter.com/vNqXEhaC9M — President Obama (@POTUS) January 4, 2016
Obama’s executive proposal will ensure that US Bureau of Alcohol, Tobacco, Firearms and Explosives will require that people who sell guns at stores, at gun shows or over the internet be licensed and conduct checks,
The bureau is also finalising a rule requiring background checks for buyers of dangerous weapons from a trust, corporation or other legal entity as well.
The new regulations, which are expected to be fully unveiled today, may also arrests for those who lie about failing a background check when trying to buy weapons.