Obama's Vendetta With Gun Makers Gets Personal: Smith & Wesson Shares Plunge After Call For SEC Investigation

Tyler Durden's picture

Last Friday, in the aftermath of the most recent mass shooting in San Bernardino and the latest attempt by Obama to impose further gun control measures, ostensibly by executive order, we pointed out the one thing, or rather person, who even the NYT begrudgingly admitted in an article on "What Drives Gun Sales" has been the primary driver of gun sales in the US: US president Barack Obama.

 

The irony in all this, of course, was that just last Friday the stock price of Smith & Wesson hit an all time high on expectations gun sales are about to hit even greater all time highs in the coming weeks.

Alas, as it turns out, Obama is not a fan of efficient market irony and instead of letting the chips on gun control fall where they may especially if it means record stock prices for the shareholders of SWHC and RGR, the president - in pulling a page straight out of the "US Government vs Exxon" in which the company will soon be prosecuted over its Global Warming denials as reported previously - has decided to take his vendetta with US gun makers to the next level and as the NYT reported overnight, "the New York City public advocate on Monday asked federal regulators to investigate whether the gun manufacturer Smith & Wesson had made adequate disclosures in its financial statements."

One would think that being in compliance with all existing SEC regulatory requirements would be sufficient, but when one is on Obama's black list there are additional requirements for "adequate disclosure" one must follow, especially the ones that one does not know about because they appear only after the fact.

The NYT continues:

In an eight-page letter, the public advocate, Letitia James, said the Securities and Exchange Commission should examine whether Smith & Wesson misrepresented or omitted information about how often its products are involved in crimes and what it has done to keep its guns out of the hands of criminals.

In the letter "public advocate" Letitia James says that "with the increase in mass shootings, public concern about the proliferation of firearms has animated a national dialogue about gun control measures, interstate gun trafficking, and whether gun manufacturers should take additional steps to ensure that their products do not end up in the hands of criminals," the letter says. “Smith & Wesson knows that it is at risk of grave reputational harm.”

It probably also did not know that the US government is capable of extortion when it does not get its way; it will be quite aware of that now.

Ms. James' punchline: "shareholders would want to know whether Smith & Wesson faced heightened regulatory scrutiny or significant litigation risk."

They would, especially now that the administration of the world's biggest democracy is taking a "negotiating tactic" page right out of Stalinist Russia.

To be sure, this is merely the latest escalation in Obama's witch hunt against gunmakers, of which Lelita James has tasked herself with being the mouthpiece for the administration's relentless attempt to crush the US gun industry.

Ms. James is opening a new avenue in her fight against gun sellers and makers. Earlier this month, she called on TD Bank, a big lender, to stop financing Smith & Wesson. This summer, she convinced the New York City Employee Retirement System, the city’s largest pension fund, to explore divesting itself of its holdings of gun retailers like Walmart and Dick’s Sporting Goods.

Smith & Wesson, which makes 50 percent of all the revolvers owned in the United States, did not respond to a request for comment, although we can imagine what it would say: "If Obama has determined that the best way to protect the nation against CIA-funded terrorist organizations is by a creeping nationalization of the gun industry, then so be it."

Finally, if it was Obama's intention to force the shareholders of Smith & Wesson into selling their shares from record high levels, he succeeded, if only for the time being.

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CHoward's picture

Same requirements then I guess should be put on to automobiles - especially since more people are killed in car "accidents".   But - any intelligent person really knows what this SEC investigation is about. 

Escrava Isaura's picture

 

 

This is a NO brainer.

The dollar can not flourish without Smith & Wesson.

 

RonArgent's picture

Obama is a filthy sack of shit.

TeamDepends's picture

Now it's personal.
-Smith

Four chan's picture

rocketing sales and declining stock price spells buy to me.

Oldwood's picture

You've missed a couple of points here.

They are trying to punish and ultimately shut gun manufacturers down, so don't buy their stock, buy their product.The idiots who own stock will suffer, but customers continuing to buy their product will keep them in business and us in guns.

And there is no "market".

Stop looking for ways to profit from the collapse and try to prevent it from collapsing. We don't need to burn the house to get rid of the roaches.

lakecity55's picture

Exactly. Their goal is Nationalization. "Fundamentally Change" also includes bringing in terrists and foreign troops to exterminate the Caucasians and Christians of other races.

This Boy is just getting started. You will puke over what you see in the next 6 months. In 12 months, you'll be dead or hiding in the woods from Predator Drones.

847328_3527's picture

" Change you can beleeve in. "

 

That's all. 8 years of it.

Theosebes Goodfellow's picture

~"In an eight-page letter, the public advocate, Letitia James, said the Securities and Exchange Commission should examine whether Smith & Wesson misrepresented or omitted information about how often its products are involved in crimes and what it has done to keep its guns out of the hands of criminals."~   

So Goodyear is now misrepresenting or omitting information about how often its products are involved in hit and runs? In drunk driving? What about Werner Ladders in falls? How about Lowe's and Home Depot in hanging suicides for selling sisal rope?

This is all just bullshit thugsterism by the most criminal and deliquent administration in American history. And what exactly is a "public advocate" and how much do we pay that asshat? The SEC can't police HFTs but they have time to go after manufacturers like S&W? WTF?

MANvsMACHINE's picture

If I were the CEO of S&W, I would use my excess cash to buy back my shares at depressed prices. Maybe ultimately take the company private and flip a middle finger at the SEC.

kralizec's picture

Sure, but keep flipping the finger, because the SEC is just one of the henchmen the Regime employs.  

WOAR's picture

If I sell you a hot dog, I don't care if you eat it, your dog eats it, or your kid eats it.

Hell, you could starve your kid and feed your dog, it makes no difference to me. It's the GOVERNMENTS job to protect "the children," remember?

So if I sell a gun, the same rules apply. It's the GOVERNMENTS job to overwatch the market, and keep the gun out of the hand of evil, not me.

It's fascinating to me that the government perpetuates two wildly different views: That they are all powerful, but they need YOU to do all of the work for them.

It baffles me that they still exist.

XitSam's picture

Does S&W sell only to holders of Federal Firearms Licenses?  If the answer is yes, and I think it is, what further measures does public advocate Letitia James think they should be doing?

Public Advocate, XitSam

kralizec's picture

This is so stunningly blatant in its intent and appears equally easy to spike back into the face of the Obama Regime and its henchmen du juor at the SEC - They sell products to duly authorized FFL holding dealers, who in turn use the Federally run gun registry known as NICS to check eligibility at the point of retail sale...and every gun sold comes with a lock.  If there is criminal activity involved in getting guns, it is crimal driven not lawful possesor driven...and the experts at gun-walking in the Obama Regime should be acutely aware of these distictions!!!

Basically, tell them to fuck off!

People know who the assholes are in this little sideshow, and they are voting with their purchases in record numbers.

So to S&W, Ruger et al...you keep making 'em we'll keep buyin' 'em and everybody else can suck it!

If the Fedcoats want to up the ante, let them try to take these plants over at gunpoint.  Then it will be Game On!

A Nanny Moose's picture

Like gold?

Piece of unsolicited advice....

Exit the market, and buy the products which support the actual stocks, and which are a store of value. Booze and bullets are about the only investment that remains for the common folk.

greenskeeper carl's picture

this will be the first time I have said this non-sarcastically, but BTFD. Although it seems to me supply has caught up with demand. After sandy hook, I waited a little over 2 months to get the AR i wanted, a S&W MP-15T(I later decided to take that rifle ocean kayaking with me, i rolled over, it was a sad day) Every rifle they made was back ordered. Now, in the same store, they have most of them in stock pretty much all the time.

Osmium's picture

I waited over 10 months for a Rock River LAR-8 Elite operator.  Same thing now, plenty around to purchase.

lakecity55's picture

"Ms. James was caught today with Jewish and Christian Sex Slaves in her expensive, 10-million$ City-provided Apartment. Many of the victims had been beheaded and partially eaten."
"Rumors abound Hitlery will ask he to be her running mate."

t0mmyBerg's picture

You are so right.  You know what?  Fuck these motherfuckers.  That fucking asshole has absolutely abused his power so many times by using organs of government to go after political enemies and anyone with whom he disagrees.  Yes I have had some Jameson and a few beers while watching this shitshow debate but ffs.  God shit like this makes my blood boil.  It brings to mind the unreal interview with his right hand henchman and one of the real powers behind the throne, Valerie Jarret, wherein she said "we are going to speak truth to power".  Dumbass, you are power.  Abuse of power.  For your own ends or those of your puppet masters, who cares.  Fuck

Demdere's picture

I know what I want for Christmas.

Hal n back's picture

Harsh tax audits coming next for company and officers--follow the S&P US downgrade process.

Squid Viscous's picture

Reggie is that a .38 in your pocket, or are you excited by my bitch going after SWHC?

in case anyone had any doubt:

https://en.wikipedia.org/wiki/Letitia_James

 

 

Meat Hammer's picture

She's demanding that the owner's manual for each gun be written in ebonics.  Seriously, though, why don't these "activists" look where nobody seems to be looking for the problem.  Start in south Chicago.

sun tzu's picture

personal responsibility is racist

g'kar's picture

we must quell the manufacturing of those fully automatic "assault" revolvers

herkomilchen's picture

Revolvers must be limited to no more than 1 round.

Oldwood's picture

A fully automatic single shot revolver

John_Coltrane's picture

Only Thomson Center contenders chambered in a good old hunting round like 30-06 shall be allowed.  Though it can penetrate 1/4" steel at over 2000 fps its obviously only useful for those with a steady hand and dead-eye accuracy.  Getting it in a holster is obviously challenging!

Implied Violins's picture

I had one of those, and couldn't hit shit except with .22. Fun concept, an all-around any-caliber single-shot gun - but for anything other than shooting matches with match-grade bullets, it is pretty damn clunky.

g'kar's picture

it's those revolvers with the 100 round drum magazine that are the real villains

Nobody For President's picture

Herk, that's funny. But to be a true 'revolver', it would have to be 2 rounds.

But there could be a built in delay of a few seconds (or minutes).

This would improve real gun control = hit what you aim at; one shot, one kill.

stant's picture

BTFD bitchez.

MsCreant's picture

You beat me to it! Let it fall a lil' more, then hop on if you play these games. 

Fuckers.

The gun makers need an anti-Obama lobby.

Government needs you to pay taxes's picture

U go gurrrrl!  I noes 'Titia' bee workin HAM (hard as a mother fucker) on dis one.

847328_3527's picture

I wonder if anyone be still investigating the Fast & Furious criminals?

Government needs you to pay taxes's picture

Nah.  They're all tasked on Lois Lerner and the IRS!

ThroxxOfVron's picture

What of the financial disclosures and tax records of Senator Bob Corker from Tennesse and that $3.5M +/- a few million bucks he forgot he made???

http://www.zerohedge.com/news/2015-12-14/prominent-tennessee-senator-fai...

 

FUCKING CRIMINALS

ThroxxOfVron's picture

Seriously: NY can hardly honestly investigate it's own politicians and NOT send them -and their cronies and sons- to prison.

RafterManFMJ's picture

^This honestly never gets old; I laugh every time I see it. Granted, it's a bitter laugh...

MsCreant's picture

Let me be the first to add a new spin to an old favorite.

Free Bob Corker!

Too early? Give the system a chance to work you say?

A Lunatic's picture

Free Hillary Clinton HAR HAR HAR!! The funniest one of all.........

Nobody For President's picture

Good old MsCreant. A LOL on a Tuesday night. Thanks!