Rumor Mill: Smith & Wesson Are Splitting Up?

American Outdoor Brands Corp. announced its company will split into two separate traded companies.  One of the companies will be outdoor products on the market, and the other company will steer around the focus of firearms.  Many factors were taken into consideration when making this decision, but the goal of this split is to reverse the decline in the stock market.  The reason for the decline is due to the pressure from gun control activists pushing for stricter gun laws throughout the United States.  The results of the companies separating will have the names, Smith & Wesson Brands Inc. and the other company will be named American Outdoor Brands Inc.  In the second half of 2020, the move will be completed.

American Outdoor Brands Corp., which is based in Springfield, Massachusettes, put forward this statement, “There have been significant changes in the political climate as well as the economic, investment, and insurance markets since we embarked upon what we believe have been our very successful diversification efforts.”

Mass shootings made it difficult for American Outdoor Brands Corp. and many other competitors to sell guns.  Many saw a steep decline in sales, and some competitors dropped out altogether.  This is a significant hit on the firearm markets, and Democrats are to blame.  American Outdoor cut the profit forecast in August, which was lower than any given time.  American Outdoors has manufacturing facilities in China, and the tariffs on imports also affected the profit margin.  In the stocks, the shares fell 3.1 percent to $7.65 in New York after the regular trading closed.  The total this year has the shares plummeting 39 percent.  Sturm Ruger & Co., a competitor rival, fell 17% during the same time frame.

Those who held shares in the company for over 3 years will remember the name was changed from Smith & Wesson Holding Corp. to what it is currently, American Outdoor three years ago.  It spiked up the numbers when the change occurred, and shareholders are hoping it will happen again.  Splitting the company can also help the business gain access to capital.  Among the financial companies, Bank of America Corp. is just one bank that announced they will no longer lend money to manufacturers of assault-style guns.  Smith & Wesson is one that makes the assault rifle for non-military reasons.

Bad news for gun consumers, after the separation takes place, they will not make rifles anymore.  They will only carry the ammunition, scopes, sights, and other accessories.   Vista Outdoor Inc. is another manufacturer of firearms announced in 2018; they would discontinue their gun brand but would continue to sell bullets.

Retailers are resisting the manufacturers with the rise of mass shootings and the combination of the U.S. Supreme Court allowing the lawsuit against Remington Arms Co. to continue.  Sandy Hook’s family members of the slain are suing the manufacturers of the assault rifles, and other companies fear they can be sued as well.  This was the biggest reason for the stock market for manufacturers to fall.  This is one tactic feared by people who support the Second Amendment hoped would not come to pass.  Gun manufacturers were always protected by law from these types of lawsuits, and the Supreme Court is not doing its job by letting this slide.

Dicks Sporting Goods Inc. was also another company that walked out on gun sales.  They discontinued all guns and no longer stock them in retail stores or sell them.  Walmart Inc. announced in September, they would follow in the footsteps after the shootings in Texas on August 3.  The short barrel rifle ammunition and handgun ammunition sales were the targets of discontinuing.  They would, however, still sell guns in the stores.  The fear has led retailers as well as the manufacturers to step back and review their stance.  Since all of the sales affect the stock market, it leaves gun owners at their mercy.

It is highly unfair at the Supreme Court’s decision to block the lawsuit against Remington.  Protesters against guns have always stood up every time a mass shooting has taken place, claiming guns are the problem.  Guns are not the problem.  It is the people who choose to use guns for killing the innocent.  A gun can sit on the shelf or in a corner somewhere and never go off.  Hopefully, the Supreme Court can rule in favor of the manufacturers since the case was not thrown out.  If they do not rule in our favor, The Second Amendment is in danger.

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