“Tragic mass shootings in this country have caused investors not only to avoid investments in such companies but also to demand divestment. Going forward, I would expect private equity firms will avoid acquiring interests in gun manufacturers.” – Coller Capital president Frank Morgan in Wall Street’s Big Guns: Why Cerberus Sticks With Its Firearms [at bloomberg.com]
Just like the firms that dumped all their Boeing, Anheuser-Busch, Ford, GE, etc… stock and refuse to hold government bonds. If we’re going to play the “hold no evil shares” game you may as well divest in any and all companies and governments.
Cars have finally become as safe as guns after all these decades. Celebrate and buy more stock.
Meanwhile, swh and rgr are two top performing stocks of the year!
Amen to that. The only thing I’m upset about is that I put off investing in Ruger. In fact yesterday my advisor was congratulating me over the phone for investing in S&W when I did.
Time to sell. We have arrived at “peak gun.” I don’t mean that the market is saturated or the public wants more gun control. The sign that “peak gun” has arrived is that a substantial number of “gun rights are my #1 criteria” voters are willing to roll the die on Donald Trump and put Hillary in the White House.
Don’t get fooled by the TV talking heads and political analysts. Hillary is very beatable. Lots of DemocRats don’t like her at all. I’m not a Trump fan but he seems to have a knack for firing up disaffected blue collar voters who are sick and tired of the political establishment. These disaffected voters have stayed away from the polls by the millions, allowing BHO to get elected.
Hillary doesn’t have BHO’s superficial charm and rhetorical gifts. She can be beaten and beaten badly if the Retardpublicans can nominate someone with more testosterone than an earthworm instead of the usual mealy mouthed, elitist, business as usual, gutless wonder. Like Mitt Romney for instance.
The “experts” have predicted Trumps demise a hundred times by now but he just keeps getting more popular.
I guess you don’t get it. Trump is Hillary. Look how fast he jumped on the no fly list ban bandwagon. His conversion. To the Second Amendment is about as honest as Wendy Davis.
Uncool to turn a TTAG comment section into a ‘I hate Trump’ trolling session.
Most of the folks here don’t like big government liberals but it’s nice to see some of you liberals on the side of the Second Amendment. 🙂
No more Freedom Groups in the gun industry? Sounds like a win to me.
You got that right.
Um, I call BS. What kind of idiot would take investment advise from this idiot and this company? He is playing the game where he thinks if he pleases his Liberal Fascist masters, they will allow him to keep his company and give him scraps from their table.
Or one can make a case that people like this are the masters and the politicians are the puppets. Who created the Federal Reserve? Was it the bankers that put the plan together or the politicians that voted it into law?
Aren’t the individual components of Freedom Group worth more separately than together, anyway?
If they really cared about what the whiny liberals who run California’s public employee pensions thought they’d sell off Bushmaster and DPMS and tout their Fudd cred. But then they’d be stuck with Remington and it’s 8 million faulty triggers.
Good! Maybe another big conglomerate won’t ruin perfectly good companies like Remington, Marlin, and Bushmaster.
Investors will go where the performing stocks are. Political correctness wont trump economics no matter how hard the left wishes it would.
The final paragraph pretty much sums it up (and most likely makes Bloomberg’s blood boil) :
“…Even so, Feinberg — and the investors who have stuck with him — may profit handsomely from their investment. Cerberus and its clients have already recouped the $180 million they have put into the business since 2006, ……., whatever Cerberus makes on the nation’s largest gun company looks like pure profit. …”
The pension fund managers need to be sued by the people who have money in them. The managers are putting their political beliefs above their fiduciary duties to make money for the principals(people who put their money into a fund).
“Even so, Feinberg — and the investors who have stuck with him — may profit handsomely from their investment. Cerberus and its clients have already recouped the $180 million they have put into the business since 2006, when Feinberg set out to build the firearms giant via a string of acquisitions, according to two people familiar with the investment. From here, whatever Cerberus makes on the nation’s largest gun company looks like pure profit.”
Why don’t people sell their stocks in car companies and alcohol companies when a drunk driver plows into a mini van full of kids and kills them? Oh, that’s right, they blame the driver in that instance!
HA HA, most investors I know are very pragmatic, if it will make money they’re in. Period.
For someone who works in the financial industry, you’d think that guy would know a little more about how investors think. If it’s going to make them money, they’ll invest. Period. It doesn’t matter if the company makes baby carriages, guns, refrigerators, or Zyklon-B.
I’m perfectly happy not seeing another Freedom Group anytime soon.
That said, all this “invest in good only” nonsense begins with the assumption that there is a common set of “correct” interests and that everyone holds them. The interests of a person attempting murder and the intended victim defending themselves run completely in opposition to one another, and they could both be making use of the same tool. Which side does this place the firearm company shareholder on? The murderer or the defender?
It’s simply not a black and white world, though the left is certainly trying to divide it up that way.
“I’m perfectly happy not seeing another Freedom Group anytime soon.”
The problem with Freedom Group is Freedom Group.
I’m not against the concept, but it needs to be run by people who are genuinely interested in the second amendment.
The industry overall is loosing highly skilled tradesmen at a horrific rate. There really needs to be an umbrella to keep those who are left to instill their knowledge on the apprentices.
Honestly, the US firearms industry is really tiny – sure we care about it a lot, but there are very few firearms companies that would even qualify as a “mid-market” acquisition. I am pretty sure you could fit the entire US small-arms industry into Exxon with room to spare.
I think that all the pension funds should divest the “bad,” like SWHC and RGR, and invest only in “good,” like Solyndra.
BS. Money talks, bs walks. They will just hide their ownership, not hard to do. He is an idiot
Meh-I have no $ to invest. Except more guns and ammo-which might work out…
Gee, BLOOMBERG News giving us a totally unbiased story on the firearms industry. Right. And the Easter Bunny will be here tomorrow …
Sounds like a buying opportunity, actually.
Statists gotta state
Going forward, I would expect private equity firms will avoid acquiring interests in gun manufacturers.”
Okay, so they will divest themselves of companies that produce lethal weapons such as Boeing, McDonnell Douglas, Grumman, Martin Marietta, GE, GM, General Dynamics, Lockheed, Raytheon, Haliburton, IBM, Motorola, Textron, and a host of others in the military industrial complex.