The biggest no brainer trade I have ever seen is to buy Taser (TASR) and short Smith & Wesson (SWHC) or Sturm, Ruger (RGR). Guns are going to become like cigarettes only MUCH WORSE. Friday’s events guaranteed the fate of guns. This argument is so simple that I do not need to do detailed fundamental and technical reviews of the three stocks.
Guns will be allowed for hunters but the semi-automatic weapon and assault weapons are going to be banned. End of story. All guns will have to be registered and mandatory jail time for owning an unregistered gun. We are at the beginning of the rise of Taser. The gun nuts are going to get what they thought they would with Obama as President and this is a good thing.
Police departments have already begun to use the Taser over guns. Taser also has a product for police departments to record all police interaction via a camera on an officer’s sunglasses or hat. Taser blew out numbers last quarter and with smart marketing they will convince people to trade a gun for a Taser.
I sold Taser at $8.08 on October 26th and this morning I will be a buyer based on the above. Oh and buy the way, the short ratio is 6.54 so shorts will feel the pressure of the change that will be forthcoming.Comments »