Gun Makers Dominate 2015 Again

Steve Kanaval  |

Investing in gun makers like Smith & Wesson (SWHC) has been a homerun since 2011. In fact if you bought shares for yourself as a Christmas Gift in 2011, you would have a winner of 350% with 100% coming in 2015. Gun Stocks have gone up 100% every year for 3 years. Sadly, it has reached the point where if and when we have a terror attack, this sector is where we have a current flight to quality. It is more a phenomena than a revenue/run rate reality. The relationship to this sector’s advance is not equivalent to its sales, but more likely to the expanding multiple for the industry that is driven by fear premium.

This got me to thinking about other gun makers and I stumbled on this one Umbra Applied Technologies Group (UATG), an emerging stock with an interesting future.They are a U.S. based defense and security company. The company delivers a full-range of products and services for air, land, and naval forces, as well as advanced biotech, electronics, security, information, technology solutions, and support services.

Umbra announced recently that UAT ARMS (a division of Umbra Applied Technologies) has entered the final stage of development for its new secured arms site. UAT Group CEO, Alex Umbra, commented, "I, as is the entire UAT family, am very much excited about this critical time in our company's evolution. The completion of this new location will play a pivotal role in the launch of the newly designed Umbra Battle Rifle production line. The office was designed to supersede all the governmental regulations necessary to procure the proper licensing.” Mr. Umbra reiterated, "This office will represent the company's ethos of going beyond industry guidelines, exceeding expectations and redefining acceptable standards, as the UBR-16 will become the benchmark in both quality and performance in battlefield weapons platforms."

The company has received a financing arrangement, which will contribute to office completion and aid the production of the UBR-16. The company maintains its earlier projections that it will sell 1000 rifles ($1,300,000.00 USD in sales) in the first 6 months of the UBR-16 release and 2500 units ($3,250,000.00 USD in sales) in the first year to domestic and foreign governments.

UAT Arms will also be releasing a civilian version to U.S. customers in a limited production run. The company projects civilian sales to reach $2,000,000 in 2016. The release of the high-powered version of the UBR-16, the PRP-30 (Precision Rifle Platform-30 caliber) will follow UBR sales with an anticipated release during the fourth quarter of 2016.

UAT will be doing an initial production run of the Umbra PRP-30 for government clients of 1000 units and a limited run for civilians of 250 units. Every PRP-30 will come with the finest optics available and will be accurate beyond half a mile. Government sales are projected to be $3,500,000.00 USD while Civilian sales are projected to be $1,675,000.00 USD.

All in all, gun makers do not look to stop this growth trend. We live in a dangerous world and the flight to quality in gun stocks will trend a parallel path to the rising concerns about safety on U.S. homeland and abroad.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
SWHC Smith & Wesson Holding Corporation n/a n/a n/a n/a


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