A bit of economics for everybody this evening. Take a look at what happened to Smith & Wesson and Ruger stock as the gun bill passed. From BusinessWeek:
Shares of Smith & Wesson Holding Corp., the parent company of gun maker Smith & Wesson Corp., and Sturm Ruger & Co. shot through the roof on Friday with the expected passage of an industry-friendly gun-liability bill in the Senate.
Both gun makers hit new 52-week highs on the pending legislation, which was stripped of an amendment in a 62-37 vote Thursday that would have allowed lawsuits against gun makers for gross negligence.
Smith & Wesson shares surged $2.20, or 46.2 percent, to a new high of $6.96 in morning trading on the American Stock Exchange, with volume at more than 28 times the stock's average by afternoon. The company's shares have risen from a 52-week low of $1.15 in August, and have more than doubled in value so far this year.
Ruger shares jumped $1.70, or 16.9 percent, to $11.75 in morning trading on the New York Stock Exchange, and volume was at more than 30 times the stock's average in the afternoon session. In the past 52 weeks, the shares have dwindled from a previous high of $10.85 last July to bottom out at $6.41 in April. The stock is up about 30 percent on the calendar year so far.
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