The Strategist

Las Vegas massacre brought up quotes of American arms manufacturers


10/03/2017 - 14:35



Quotes of American arms manufacturers have grown significantly after the most deadly mass execution in the modern history of the United States.



Mike Saechang via flickr
Mike Saechang via flickr
Shares of companies such as American Outdoor Brands (parent company of the Smith & Wesson brand), grew by 3.8%; Sturm, Ruger & Co rose by 3.5%, Vista Outdoor - by 2.4%.

In recent years, rallies in the quotations of arms manufacturers have become a traditional reaction of investors to massacres of people in the US with the use of firearms. Each such incident arises a discussion about the need to tighten control over sale and carrying of weapons. Investors are buying up stocks of arms companies precisely against this background.

It is worth noting that there was a serious decline in quotations in the sector of firearms before the October 1 shooting - largely due to President Donald Trump's positive attitude to the rights of Americans to carry weapons.

Since his election, American Outdoor Brands’ shares have fallen by 46%, reaching their minimum level for 2 and a half years in early September this year. Quotes of Sturm, Ruger & Co fell by 20% since the presidential elections in the US, Vista Outdoor - by 40%.

Recall, in the evening of October 1 a lone shooter opened fire on visitors to the country festival in Las Vegas. The criminal was in the hotel room and casino Mandalay Bay on the 32nd floor and shot from the window. Type of the gun has not been revealed yet, but, according to eyewitness accounts, it was an automatic weapon.

During several minutes with virtually no interruption, the man was firing at a crowd that gathered a few hundred meters from the hotel at the country festival Route 91 Harvest on the Las Vegas Strip. The total number of visitors to the festival, which was arranged on one of the most famous streets of Las Vegas, was up to 30 thousand people. Panic began after the first shots; it was also reported that fire was noted from different locations on the Las Vegas Strip, but this information was not confirmed.

More than 50 people were killed, another 406 received various injuries. This is the largest massacre in US history. Initially, it was reported that only two people became victims of the indiscriminate firing, but it soon became clear that there were many more. Afterwards, the criminal shot himself, what was found by SWAT special forces soldiers, who previously tampered the door to the room. More than ten weapons were discovered. Among the dead are two police officers who were not on duty at the time of the shooting and came to the concert to listen to music. Two more policemen on duty were wounded.

The criminal’s identity has already been established. The shooter was 64-year-old white man Stephen Paddock, a pensioner from Las Vegas, who lived in the vicinity of the city. He never came to the attention of the police, and it is not known where did he get the automatic weapon,.

On September 28, Paddock and a Nevada resident of Asian descent, 62-year-old Marilou Danley booked a number in Mandalay Bay. Status of their relationship is not known. The police managed to find the woman a few hours after the shooting. In addition, two vehicles belonging to Paddock were found.

source: bloomberg.com, cnbc.com