American Outdoor Brands Corp (AOUT)

[maksim]

A few things....

once again, in the short term, talk of gun bans will increase sales. However, and this is a big one, you are not buying SWHC for next quarter's sales. You are buying them for the future cash flow.

A Gun ban will seriously cut revenues.

Look at Smith and Wesson stock from as early as you can through 2004, the last gun ban... stock did absolutely nothing.

If the ban happens, there is no reason for SWHC to go back down to $2, or even $.50 a share like it did years ago.

I spoke with an institutional manager today... here is his take...
Any fund that owns SW stock is getting out. Teacher Credit unions are pulling money from money managers that own gun stocks. (IE Cerebrus) So They will get out so that on the year end reports, they do not have to list SWHC and Ruger as stock holdings. They may buy back in next year.