Just like the bubble burst in other things, i.e., solar cells, Harleys, Housing, Bonds, etc....this one will too. Wall St. knows that. All Market#$%$ new highs and SWHC and RGR are both down in the dumps. RGR at least carries a dividend for people who hold it. SWHC pays nothing.
Biggest obstacle is ammo. Who really wants to buy another rifle or pistol if they already have one or a dozen when a short 20 minutes at the range will cost you anywhere from $50 -$100.00 depending if you're shooting a .45 or a 556.
And that's even if you can find the ammo. Add on range fees and this sport has suddenly become VERY expensive.
"one reason for the lackluster performance is that wall st. is starting to think about when that tide will turn"
Dionisio who covers SWHC has a neutral rating and said "that while it trades at a discount to historical average,concern is growing that recent sales boom has peaked"
Growth will have to decelerate at some point. Short sentiment analysts such as Dionisio and Hamann will compare to the post Sandy Hook Jan growth spike because they will want to put the worst perspective on the situation as possible.
Hamann has been calling gun demand unsustainable ever since Aug 14th, one whole month after he just began covering RGR and SWHC, and he put RGR on a SELL recommendation (LOL). He became an outspoken EXPERT almost overnight. Meanwhile, he has been wrong for almost 3 quarters and he's praying for that broken clock effect to kick in soon, because he is looking more and more incompetent to those who are keeping score.
So long as the Dems are in the WH, it's not likely to slow anytime soon, and it's looking more and more like Billary will be the next prez. Also, don't forget the "tidal shift" taking place caused by: 1. more and more states allowing CC, and 2. women purchasing more and more guns. You are obviously one very worried short, why else would you and datbestupid spend so much of your time posting on this board? You two are as predictable as a morning dumb.