Hillary Clinton Could Be the Greatest Millionaire-Maker of All Time

Keith Fitz-Gerald Oct 28, 2015
35 

I don’t normally “do politics,” but today I’m going to make an exception because recent history suggests one presidential candidate could rise to the top and, in the process…

…make savvy investors millions.

Intrigued?

I hope so. What I have to tell you is a story based as much on rhetoric as reality. It’s built on an opportunity that cuts deeply and, to be perfectly blunt, may be offensive depending on your personal views.

Yet, the story that follows and the two investment recommendations I’ve got for you today could be the most profitable investments you make all year.

Both have deep competitive moats and even deeper margins than other stocks and could benefit from a boost that you’re not going to find in any other industry coming into the Presidential election.

The last time a politician took aim at this industry, it doubled during the worst financial crisis in recent memory.

President Obama Hates Guns, Yet Is the World’s Best Gun Salesman

President Obama has supported anti-gun legislation for decades.

At one time or another, he’s on record as wanting to limit purchases, ban concealed carry permits, increase gun maker liability, and re-introduce the expired Federal Assault Weapons Ban, among other things.

You’d think the industry would crumble under that sort of onslaught, considering it’s coming directly from the top. In fact, exactly the opposite has happened. Guns, firearms and ammunition have flown off the shelves since his election in 2008.

So much so that the firearm sector became one of the few standouts during the dark economic days of 2008-2009. “Our industry is proud to be one of the bright spots in this economy,” declared the National Shooting Sports Foundation in promotional literature at the time.

Most people are unaware that the gun industry’s economic output doubled from 2008-2011, rising from $6.8 billion to $13.6 billion, at a time when the limping U.S. economy grew just 11% by comparison.

Naturally, firearm-manufacturing companies saw their stock prices rise right along with surging sales.

By the end of President Obama’s first term, Smith & Wesson Holding Corp. (NasdaqGS:SWHC) had surged more than 272%, outpacing the gains of the S&P 500 by more than 3-to-1 despite a historic bull market fostered by the Fed’s cheap money policies.

Competitor Ruger & Co. Inc. (NYSE:RGR) was trading at $5.27/share the day President Obama was sworn in. When he was re-inaugurated, it was trading 815% higher at $48.26 a share.

Fast forward three years and the growth isn’t slowing down for a New York minute. Neither, unfortunately, are the tragic shootings fueling one of the greatest social divides in U.S. history. According to the Gun Violence Archive, there have been an appalling 274 mass shootings in which four or more people died in the United States so far this year alone.

Gun sales are soaring, the government still doesn’t track individual sales, and the FBI background check is a farce for all but the most hardened criminals (who obviously don’t care anyway).

Smith & Wesson stock is up another 100% despite more than tripling during Obama’s first term and may rack up $600 million in sales this year, a 50% increase from 2010 levels. Sturm Ruger is doing even better and is tracking $500 million, or nearly double what it did in 2010 according to FactSet.

As impressive as those figures are from a financial perspective, they’re a fraction of what could happen next.

Hillary Clinton Plans to Make Obama’s Antigun Efforts Look Like Amateur Hour

During an October campaign rally in Florida, Hillary Clinton vowed to use executive action if Congress wouldn’t pass enhanced background checks. It’s a promise she’s repeated at several rallies, and even at the Democratic debate held earlier this month.

The gun lobby likes to joke that President Obama is its best salesman, but I believe Hillary is going to steal the title if she wins. To be blunt, I believe a Clinton victory will create a gun-buying frenzy that positively dwarfs anything that the Obama administration has brought on to date.

Gun control is one of the very few issues Hillary can use to maneuver to the left of her primary rival, self-declared socialist Bernie Sanders. That’s because he’s from rural Vermont where gun ownership is popular and he’s cultivated a voting record that reflects this.

I can’t imagine a bigger stimulus for gun sales than this.

It also makes me wonder if gun executives, who are notoriously conservative generally speaking, may actually cast their lot for Hillary in secret once the voting booth curtain is drawn.

Two Picks Hillary Wants to Erase From the Planet But Can’t

Many analysts believe that Smith & Wesson Holding Corp. (NasdaqGS:SWHC) is poised for a pause after a blistering 759% run over the last seven years. Given the scenario I’ve just laid out for you, I believe there’s still plenty of upside.

The company makes and sells firearm products in the U.S. and internationally through two key segments: firearms and accessories. The company Β offers handguns, rifles, and all manner of law enforcement equipment.

This international customer base, though, Β is a key reason I prefer Smith & Wesson to its more U.S.-centric competitors like Sturm Ruger at the moment.Β  While it’s true that the U.S. has 45% of the world’s armed civilians, other countries are seeing renewed interest in firearms.

Austria, for example, just reported record gun sales in Vienna, as citizens arm themselves in the face of a destabilizing mass migration that’s causing new fear and safety concerns. More than 70,000 guns have been sold this year despite a rigid permitting process. Shotguns, according to press reports, are sold out. Lines outside government offices for the required paperwork are now common. Women, ironically, are the key driver in a new personal arms race.

Smith & Wesson is perennially underestimated. Socially it’s the financial equivalent of a stray dog that you begrudgingly welcome to the family picnic. That sets up a contrarian opportunity based on nothing more than sentiment.

The company has just reported its 17th consecutive earnings beat and it’s trading at a PE of 19.54 according to YahooFinance. That’s not exactly inexpensive but it’s not outrageously out of line either. The price-to-earnings growth (PEG) ratio of just 1.08 confirms that it may be solidly valued when you consider its long-term growth prospects.

If firearms aren’t your thing for whatever reason, you’re not out of luck.

Consider Vista Outdoor Inc. (NYSE:VSTO), which was created as the result of a spinoff earlier this year. It’s already piling on the profits and has returned double-digits to date.

The company makes all kinds of outdoor products and is organized into two self-explanatory divisions: shooting sports and outdoor products. It’s best known for brands like CamelBak, Bushnell, Bolle, and Federal Premium just to name a few. But it’s also a top ammo and scope seller.

While it’s slightly more expensive than Smith & Wesson and has shown more modest quarterly growth of 5.7%, VSTO takes you beyond firearms by offering exposure to high value, high margin consumer outdoor gear. And with taxes on ammunition being one of the most potent rumors powering gun sales in America, VSTO (which didn’t exist in 2008) could be a major beneficiary of Clinton’s rhetoric, if not her policies.

In closing, I want to thank you for reading along all the way to the end today. Guns are a very contentious issue at the moment, yet when you take the emotion out of the investing process they merit examination just like any other alternative.

As we have discussed several times, sin stocks – including firearms – are usually more about value than vice when you get right down to it. And that means they can introduce an element of stability in your portfolio.

And that’s an opportunity every investor should understand.

Until next time,

Keith Fitz-Gerald

35 Responses to Hillary Clinton Could Be the Greatest Millionaire-Maker of All Time

  1. Don P says:

    Hi Keith

    Thank you for all of the great information you have shared about Trading. It has been very helpful to me to gain a better understanding. I signed up last week and have picked up some shares.

    • Keith says:

      Hello and welcome to the Total Wealth Family, Don.

      I am thrilled you are here and your kind words made my day. Please feel free to post, contribute and share information with everybody here, including, of course, me. Together, we are all stronger…and hopefully more profitable, too.

      Best regards and thanks for being part of the Total Wealth Family, Keith πŸ™‚

  2. Glenda Joiner says:

    Thank you, Keith. I enjoy reading your material. Unfortunately, I am new to the investing area of business. I look forward to your picks.I guess you could say I’m being cautious. I think you have a great staff not only in sales but behind the scenes.

    • Keith says:

      Thanks Glenda. You, too, have made my day. Caution is a great attribute when it comes to money, by the way!

      There is, indeed, a great team behind the scenes and all though you don’t hear from Wills, Bob, Sid and many others often, they work hard to ensure that we’re on task for you.

      Best regards and thanks for being part of the Total Wealth Family, Keith πŸ™‚

  3. William Clifford says:

    Hi Keith. I’ll be voting for Hillary, but not because of the investment potential advantage, though I agree that it’s there. Although I support background checks at all venues and more gun control, I’m not anti-gun per-se. And the only reason gun sales have been so successful over the last seven years is because of the idiot wing-nuts who actually believed that the president was going to come after their guns. Such rubbish! Anyway it just proves that peoples’ stupidity can lead to great profits for those smart enough to take advantage of the stupidity. I think I’ll consider the stocks you mentioned in today’s article.

    • Keith says:

      Hello William.

      Sounds like a good plan and your points are well taken. I find it amazing that people can be so polarized on this issue – guns or not. But, then again, that’s good because it creates the investment opening here.

      Best regards and thanks for being part of the Total Wealth Family, Keith πŸ™‚

      • Bill says:

        Keith:
        Thanks for great investing advice.

        William:
        Please realize that the folks you refer to as “Idiot Wing Nuts” are the only reason the thug in the Whitehouse wasn’t able to accomplish radical gun control. *Gun control has worked so well in his (adopted) home town of Chicago, now hasn’t it? Go back to sleep.

        • Lee Steele says:

          Bill-
          “The thug in the Whitehouse” is sort of obligated to stench the flow of blood. The “idiot right wingnuts” idea of a good president lies them into a business deal war or two.
          Trump will also be great for gun sales because we’ll be fighting in the streets within two years.

    • Robert Allaire says:

      You take the guns away from the honest,and they cannot defend themselves. Take New Orleans for example, the troops were sent in and confiscated the guns and the criminals ramsacked the homes of those people. Quite frankly I do not trust Obama or Hillary. You really need to follow Hillary’s history since her High school days. only the misinformed would vote for her. If you want the truth Follow Ron Paul and His son Rand for correct facts.

  4. Kathleen says:

    Thank you! I learn so much every day about this stocks game…I LOVE it!!

    • Keith says:

      You’re welcome Kathleen!

      If you’ve got topics you’d like to see me cover or any other suggestions, comments, etc, please let me know. Total Wealth belongs to everyone here and together we are all more knowledgeable and hopefully more profitable, too.

      Best regards and thanks for being part of the Total Wealth Family, Keith πŸ™‚

  5. Hal C. says:

    Keith, so firearms manufacturers are “sin” stocks? Why? Our forefathers did not consider them as such. Nor do a majority of our citizens today, as confirmed in national poll after poll. Maybe in your opinion guns are somehow”sinful” but your fellow citizens disagree, and most of us strongly disagree. You are coming off a bit arrogant and condescending in my opinion.

    • Joyce says:

      Hi Hal, I didn’t read anything that Keith said as disagreeing with your point of view. He used the term “sin” stock correctly. Go to investopedia.com and search for the definition of “sin stock”.

    • Keith says:

      Hello Hal.

      Actually, the definition of “sin” stocks is not mine. It’s a moniker established more than 50 years ago to denote investing in stocks or industries that some may consider illegal, immoral or unethical. Examples include tobacco companies, booze and firearms makers. The original thinking, as I understand the orgin of the term, is that regular stocks are favorable bets based on human nature, growth and economic progress. So-called “sin” stocks are bets on negative trends and/or behavior.

      Personally, I agree with your take. Our Founding Fathers considered them tools necessary for survival and the preservation of liberty. I grew up enjoying shooting skeet, hunting, and plinking targets like many in my generation did – and still do.

      My apologies if I came off as arrogant…it was not my intention. I respect arguments on both sides of the aisle both pro and con.

      Best regards and thanks for being part of the Total Wealth Family, Keith πŸ™‚

    • jeff howerton says:

      Dude, relax…he is just here trying to make all of us coin while not striking any nerves. I totally think you are off base with your “arrogant and condescending” diagnosis as well. This is an investing forum, not a tub thumping patriot blog. I’m also sure keith as well as the rest of us know about our forefathers and the bill of rights.

  6. R. J. says:

    DHS under Napolitano acquired enough ammunition to shoot every American three times over. Whether it was an RFQ to constrain the market and artificially hike prices or not, the acquisition is hollow point ammunition that is banned by treaty in warfare.

    We can’t use it on enemy combatants, but we can on the population at large.

    Go figure.

    Napolitano actually told Congress the ammunition was for target practice. What most people don’t know is that DHS training (shooting) exercises are conducted in suburban/urban-like settings, where they plug people standing in doorways, including women holding babies.

    Ruby Ridge, anyone?

    Think about that, and who, exactly, is being protected.

    Regarding second amendment rights: “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”

    This refers to the right of the people and not the state.

    With that said, who is going to out gun the Bush-created, gargantuan DHS with drones, MRAPs, and more ammunition than we actually know about?

    So, bring it on, Hilliary. Just as Hitler, Stalin, Mao, and Pol Pot disarmed their nations and assumed complete dictatorial powers, in any situation, it didn’t end well for the public.

    Will it be different this time?

    Personally, I cringe at the thought of such a policy wonk in the White House. And with that said, don’t be so sure the sitting President won’t make a power grab and still be here in 2017.

    • Keith says:

      Hello RJ.

      Very well reasoned and laid out, as always. Your points are well taken.

      Best regards and thanks for being part of the Total Wealth Family, Keith πŸ™‚

    • Robert Allaire says:

      Excellent comments RJ, Wish more people were aware of what is actually happening behind the scenes.

  7. T. A. NAVIDOMSKIS says:

    So where does that leave me, I am a 60% disabled combat vet, 80yrs young with limited ivestment income and have no idea where to invest?

    HELP PLEASE…..

    • Keith says:

      Good morning.

      Before I go any further, thank you for your service. It is deeply appreciated and I am honored you are here.

      Unfortunately, it would be inappropriate for me to answer that because I don’t know anything about your circumstances, your objectives or your risk tolerance.

      Generally speaking, safety and quality trump everything at the moment. That’s why we spend so much time talking about the need to tap into Unstoppable Trends, carefully picking must have companies, and managing risk every step of the way. My suggestion is that you make a beeline for an independent, fee only financial professional who can help you lay out specifics unique to you. That way you’ll know immediately how to make best use of every Total Wealth column and services like the Money Map Report, our flagship publication.

      Best regards and thanks for being part of the Total Wealth Family, Keith πŸ™‚

  8. Dale says:

    Good article Keith, but want to know if Hillary becomes president, will Bill be the first man?

    • Keith says:

      Hi Dale.

      That’s an interesting question and it certainly would set new precedent.

      Technically speaking, we’re in uncharted water. A president is still referred to as president after leaving office. So it’s possible we could be talking about Mr. and Mrs. President as part of the title. In the Philippines and Argentina the title is First Gentleman. In Germany, it’s simply Chancellor Angela Merkel’s husband.

      Best regards and thanks for being part of the Total Wealth Family, Keith πŸ™‚

  9. Thomas says:

    First let me just thank William Clifford letting us know in advance who to blame for the further destruction that Hillabeast will bring. Second, your statistics on gun manufacture and sales certainly disprove the leftist notion that “guns kill people”…….if that were true we should all be dead already.

    • Robert Allaire says:

      Guns do not kill people. PEOPLE kill people. Humans Kill Humans. Have you ever seen a gun get out of the gun case and kill someone. No, It was a Person, Human, albeit a deranged one that picked up a gun and killed someone.
      The next thing you you know there will be a ban on Baseball Bats and Knives because some PERSON used one to kill another person.

  10. John Barea says:

    Hi Keith, As always I enjoyed reading your report and your thoughts on our domestic issues. I just thought I’d drop a chicken in the stew pot. I’m presently retired from 30 years of service to one of the biggest killers known to mankind. I’ve often thought about the statistics and what they mean. I doubt the average American citizen has given any thought about this number one killer in our midst. It goes by the common description as “automobile”. I never hear anything from our liberal political leaders about this issue. Why don’t we have “required” safety pre-certification when renewing a drivers license! Be required to take a safe drivers test with a member of law enforcement sitting in your vehicle with you! I could go on but I think you get the gist:-) John (oh, the name of the business I retired from is General Motors)

  11. Jim says:

    Obama’s Chicago speech was in the heart of gun control county-Chicago.
    That sure is working, well !!!

  12. Walter Finch says:

    I was doing a Google search and discovered Keith Fitzgerald’s Total Wealth for the first time. I was compelled to read every posting on the 10-28-15 issue. I will now be a consistent reader of his insightful articles.

  13. Alma says:

    There were three of my family members fatally shot by the use of a gun over a thirty-five year period which had someone behind the trigger as I have never heard about a gun just jumping up and loading itself and shooting at random. I am not in favor of gun control, but I am in favor of reprimanding the person that is doing the firing of those weapons or keeping weapons from someone that could harm themselves. I have come to terms with my loss and my faith in the Divine to know there will be justice one day. They will meet their maker and will have to answer for taking a life. It seems to me whoever is President is pressured into writing new gun laws and we the people will need to stay the course to keep and bear arms. There are other ways that kill people. Hitler proved that with the mass murders in his gas chambers, and starvation in the prisoner of war camps and other heinous acts.

  14. Nina Whitcomb says:

    http://www.globalresearch.ca/clinton-challenged-to-break-up-and-break-up-with-wall-street-banks/5463280

    If anyone is interested, this is a good article.
    I have no other comment and if this is edited out as too political, understand.

  15. Nimrod says:

    Yes, business will take off regardless who get elected. The vogue are; one slow firing (one shut per second) laser cited motion reactived gun pivoting 270 degrees per building corner will expand guns and ammunition business handsomely. Get ready to push up share prices but only after I bought all I can finance. I am about to make a mint-ia-ia-O

    Berzegud

  16. CaptTurbo says:

    I think it’s ironic that folks in the gun industry might be voting for the America hating communist Trojan Horse candidates because they are so good for gun sales.

  17. Parker says:

    Keith

    Have no second thoughts. You are a market commentator, well known, by the way.
    You would have been ignoring your professional calling not to have written the
    article. Now, if garbage trucks are big next week, we will all wait to see what you
    say!

  18. Ken Schweigr says:

    Keith, What stage is esko currently.. Please bring us up to date. I was hoping for a huge military contract to start the year!!Ken

  19. reuben abraham says:

    HI KEITH , THANKS FOR YOUR RECOMMENDATIONS. I WOULD LIKE TO READ YOUR THOUGHTS ABOUT EKSO WHICH IS WELL BELOW THE PRICE I PAID TO BUY IT. I KNOW WE’RE NOT CLOSE TO THE 5 YEARS HOLDING PERIOD YOU RECOMMENDED BUT STILL , LET ME KNOW WHAT YOU THINK. THANKS !

  20. mike cieply says:

    Keith: thanks for the super job you do for all the reader of Total Wealth and Money Map Press. I agree with our analysis on Clinton being the biggest creator of millionaires. Knowing human nature, I would not be surprised if Hillary owned gun stocks herself. Back in in December when Obama went on national news to talk about gun control, one stock shot up in value and I was a little late on making the trade on SWHC. but after 30 days of patiently waiting I placed a trade on SWHC and reaped a 600% return just before earnings release on second quarter. (a sweet 7K return).
    Please keep us posted on the gun stock companies. I liked your buy recommendation on Sturm Ruger. They are also on my radar screen.Did you know that Obama’s home town has some of the toughest gun control laws on the book, but has the most gun violence in America?
    Mike from Valparaiso, Indana

Leave a Reply

Your email address will not be published. Required fields are marked *