Friday, November 9, 2012

3 No-Brainer Obama Trades for Double-Digit Gains by Memorial Day


America has spoken, and it's President Obama in the White House for a second term. And while most of the smart money already was betting on an Obama reelection, about half of the country was hoping for a different result. That other half feels strongly that the country is headed in the wrong direction, and many of them have expressed that via there buying habits.
One sector that I wrote about back in September that experienced some heavy buying in the first trading session after the president's victory is firearms. The two publicly traded gun makers, Smith & Wesson Holding Co. (NASDAQ: SWHC) and Sturm, Ruger & Co. (NYSE: RGR), each surged in Wednesday trade, with SWHC vaulting 9.6% and RGR leaping 6.8%.
There is a fear out there that now that President Obama has captured a second term, the Second Amendment will be under assault. That fear has driven gun sales to record levels this year, and those sales have exploded SWHC shares, up 136% year to date, while RGR shares are up some 43% so far in 2012.
SWHC Chart
RGR Chart
I suspect that this fear factor is just starting to ramp up, and that means more gun buying, more record earnings showings for both companies, and more upside in both of these top-performing stocks. Here are two ways to play the gun trade:  (more)

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