Guns in America: Bushmaster dumped by investors after Sandy Hook Massacre in CT … Dicks halts rifle sales … Wal-Mart pulls ads

Posted: December 18, 2012 in America, Guns in America, United States
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Captain Rick: The Private equity firm Cerberus has put U.S. firearms maker Freedom Group up for sale, which includes Bushmaster, maker of the rifle used in the shooting at Sandy Hook school in Newtown Connecticut on Friday that killed 20 children and 6 adults.

Cerberus stated "It is apparent that the Sandy Hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedented level." It is selling Freedom to protect the equity of its investors that includes the California State Teachers’ Retirement System and pension plans of other municipal workers, endowments, institutions and individuals.

Dick’s Sporting Goods, one of the world’s largest sporting retailers, said it has suspended the sale of certain semiautomatic rifles from its 511 stores in 44 states "out of respect for the victims and their families." Dick’s also said in a statement that it has removed all guns from its store near Newtown. Its webpage of modern sporting rifles was blank on Tuesday.

Wal-Mart took down a listing on its website Monday for a semiautomatic assault rifle from the same maker as the Bushmaster AR-15, that was used by Lanza. In July, James Holmes used a similar semiautomatic rifle at a movie theater in Aurora, Colorado, to kill 12 people and injure 58 others.

Smith & Wesson and Sturm Ruger stock shares have tumbled about 10% in recent days since the Sandy Hook massacre.

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The Connecticut State Police have identified the primary weapon in the attack that killed 20 children and six educators at a Newtown school on Friday as a Bushmaster AR-15 semiautomatic rifle with high capacity magazines. Police said that the shooter also used two semiautomatic pistols — a Glock and a Sig Sauer — before committing suicide.

The United States is the largest gun market in the world with an estimated 20 million firearms sold per year with an estimated worth of $3.5 billion.

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Comments
  1. bret says:

    “It is selling Freedom to protect the equity of its investors” Really? I would expect gun sales, especially the so-called ‘assult rifle’ sales to explode over the next few weeks.

    • atridim says:

      Bret,
      Thanks for your reply. In response to your question of “really?”…I try my best to report news accurately. Considering the extensive talk in Washington of tightening gun control, investors in gun manufacturing companies are running scared.
      I received an email from a friend with a related concern who said “Hmmm, it might be a great opportunity to buy a Bushmaster. Prices will hopefully come down due to this tragedy.”
      My reply: This is a good time to buy a Bushmaster AR-15 assault riffle (for those who feel the need for such a weapon)…that is if one can be found in stock…or stores haven’t pulled them from sale. Wal-Mart says they are running out of stock…a result of fear that tighter gun controls are on the horizon.
      I hope to do a report on gun control legislation soon.
      Captain Rick

  2. bret says:

    I seriously doubt that the cost will go down because of this, and will most likely (and already has) go up. Most people who buy guns realize this tragedy had absolutely nothing to do with the gun. We have quite a few manufacturers of AR-15 platform rifles right here in the valley who machine the uppers, lowers, and barrels from scratch. Whenever there is a gun control scare, the prices go up as supply goes down. Here’s a prime example:
    $30 magazines for sale for $100
    $300 stripped lowers for $800
    Before this tragedy, you could purchase all of the components to build a high quality (higher than Bushmaster) AR-15 for under $700, now they want $800 just for the stripped lower. BTW, the lower is the portion of the frame that has the serial number and requires the background check for purchase from an FFL. All other parts can be bought, sold, traded through US mail.

    • atridim says:

      Hi Bret,
      Thanks again for your reply. You presented a great case of which I checked out and confirmed. I concur with your statement of ‘supply and demand’…prices go up as supply goes down. I hope the person who made the comment I mentioned above will come to realize that.
      I sincerely appreciate your efforts to take time to get evolved in my blog by speaking your voice. Things will always remain status quo unless people voice their thoughts. I look forward to your continuing voice as I probe deeper into the subject of gun control.
      Captain Rick

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