Thursday, January 13, 2011

One Arizona Reaction

 *I did not have adequate access to this publication to properly "seed" it.
 *My comments are disbursed throughout the article, in italics.
Ruger Rallies on Arizona Reaction
by Michael A. Robinson
Dear American Wealth Underground Reader,
Let me cut to the chase. For my liberal "fans," don't mistake my report today on gun sales following the massacre in Arizona as an endorsement of violence.
   Your timing is an insult to your fellow Americans who actually care about the power of words.
We lost a respected conservative federal judge needed to help protect our constitutional freedoms in the Obama era of Big Government. And among others, an innocent 9-year-old girl died at the hands of a madman. So, I'm not trying to profit from senseless murder. But I believe I have a financial duty to let you know how current events in politics and finance affect the overall investment climate as well as specific equities.
   There’s that word again, “BUT”!
However, before I tell you about how the news is affecting one of our positions and why anti-gun zealots are so misguided, let me take a moment to talk about your next monthly newsletter.
First of all, February marks the one-year anniversary of American Wealth Underground. When I launched this publication I told you I was highly interested in natural resources stocks, particularly rare earths and metals. Accordingly, I will be recommending a company that represents one of the better investment opportunities in the silver sector. This small-cap leader is seriously underpriced and is a classic "Era of Gold 3.0" investment as precious metals prices double in the next decade.
I need to double-check my math but as I currently calculate it, we stand to make 66% over the next two years on this upcoming position. And that doesn't factor in higher silver prices or an increase in company production.
In February I will revisit the recurring theme of risk control. However, I am tweaking this column a bit to avoid possible confusion. You may recall I originally named it "Tips From Texas Hold'Em: Lessons in Risk Control." That grew out of a presentation I gave to readers last September in Las Vegas.
The idea was to harness my hobby of playing poker on my iPhone into how to make strategic financial decisions with limited information. In the past year I have played roughly 500,000 hands and racked up nearly $110 million in virtual winnings. So, why the change? Because I am concerned that some readers may think I am likening investments to gambling. Nothing could be further from the truth. A reformed blackjack player, I almost never gamble.
   You could have fooled me.
But I do take risks. Without them there are no rewards. So, in the February issue I will tell you about the importance of having an exit plan and give you the details of a brilliant move my teenage daughter recently made.
   Let me get this straight. You are basing your investment arguments on playing “Texas
   Hold’em” on your cell phone, and tips from your teenage daughter. What could possibly go
   wrong here?

Meantime, Sturm, Ruger & Co. (RGR:NYSE) surged on reports consumers are flocking to gun stores in the aftermath of the Tucson shooting that left six dead and several wounded, including a Congresswoman. At deadline, shares of this leading small-cap gun maker were up more than 3% on heavy volume, putting us up more than 6% overall.
   You just know some of your readers are saying: “whaaaat? He wants us to invest in a Cap
   Gun manufacturer?
Given that the anti-gun nuts are coming out of the woodwork it is difficult for me to predict if the sales trend will continue or if this is just a temporary speculative frenzy. However, Ruger is a well-run company that generates a lot of cash. Forbes recently named it one of America's top 100 companies. Two months ago, a sports industry trade group named it "Manufacturer of the Year."
So, I'm glad to see shares rallying though I would prefer more sanguine circumstances.
   “…more sanguine circumstances”….Oh, sure!
Now then, let me address the hard-left, anti-gun nuts who have run amok these past few days. They're blaming Rush Limbaugh and Sarah Palin for the tragedy.
   No, they are not.
They're also trying to convince America we need to trash our Second Amendment gun freedoms. What a crock of... you know. Mental marshmallows like liberal radio host Alan Colmes justify shredding the Constitution on these grounds: The framers couldn't possibly have envisioned citizens arming themselves with automatic weapons.
    Have you been listening to Lonesome Roads, again. Don’t you realize by now that Fox
    Noise is not News?
That's just true enough for an obtuse thinker like Colmes to get his mind around. But he's barking up the wrong tree: We should be curbing the First Amendment.
   Take your best shot.
Do you really think the framers foresaw the day when Hollywood liberals would make billions by creating a culture that glorifies gun violence? That they would have endorsed ultra-violent video games or cops-and-robbers on 24-7 cable TV?
   The “Framers” didn’t foresee a lot of things going on these days. If you, and your ilk, would  
   stop buying all this mindless entertainment, no one would produce it. You can’t tell me you
   disagree with the Free Market and Supply & Demand?
 And that liberals would justify it all under the guise of "free speech?" Am I the only one who gets it? The movie "True Grit," complete with a gun-slinging hero, made big coin during the weekend of the Arizona massacre. You're telling me those two facts aren't related?
   Until you have put yourself in a position to actually defend our Constitution, you may want
   to consider an alternative to misrepresenting it.
Could the brilliant men who wrote the greatest political document in history have foreseen that director Quentin Tarantino would become the enfant terrible of cinema? You know, the guy who included a scene in "Pulp Fiction" in which a young man gets his head blown off as comic relief!
   First, go back to French class. Second, it sounds as if you spent your money to see that
   movie.
Let's look at free speech and the Internet. Would the framers really have endorsed a culture in which sex-crazed viewers could stream videos on demand of women engaging in intimate acts with barnyard animals?
   Please, go back and study your American History. Your “Framers” were simply not all pure
   and lily white.

I didn't think so. So, for the Alan Colmeses of the world I say this: Come down off your high horses, you intellectual frauds.
   And to all the Mike Robinsons of the World, I say: “A little intellect goes a long way
   nowadays.”
And learn something from the rally in Ruger shares. Guns sales are jumping this week because of the genius of the American people. They have the common sense to know that the best way to protect themselves isn't to trust the police or the liberal media lapdogs. It's to arm themselves against the crazies of this world. And at least for this week that's something you can bank on.
   Genius, I says…Pure genius! If I were to arm myself, it would be to protect us from folks
   just like you. I do hope you realize the import of what you’re saying. I leave you with one bit
   of disturbing news. In the past 15 months, the membership in our Nation’s “Militias” has
   more than tripled. If that fact alone doesn’t concern you, you may need to rethink your
   position.
Good luck and happy investing,
Michael A. Robinson
Editor, American Wealth Underground

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