Tag: Fascism

Amusing

Hugo Chavez Says “Comrade” Obama More Left-Wing

I never thought I would agree with Chavez on anything.

Venezuela’s President Hugo Chavez said on Tuesday that he and Cuban ally Fidel Castro risk being more conservative than U.S. President Barack Obama as Washington prepares to take control of General Motors Corp.

During one of Chavez’s customary lectures on the “curse” of capitalism and the bonanzas of socialism, the Venezuelan leader made reference to GM’s bankruptcy filing, which is expected to give the U.S. government a 60 percent stake in the 100-year-old former symbol of American might.

“Hey, Obama has just nationalized nothing more and nothing less than General Motors. Comrade Obama! Fidel, careful or we are going to end up to his right,” Chavez joked on a live television broadcast.

During a decade in government, Chavez has nationalized most of Venezuela’s key economic sectors, including multibillion dollar oil projects, often via joint ventures with the private sector that give the state a 60 percent controlling stake.

Obama has vowed to quickly sell off General Motors once the auto giant is back on its feet, but the government will initially control the company after a $30 billion injection of taxpayer funds.

Chavez, a vehement critic of the U.S. “empire,” has toned down his rhetoric since Obama took office in January and the two men shook hands during a summit in Trinidad and Tobago in April.

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Amusing

Obama’s Court Pick, Sotomayor, Keeps Gun Stocks Soaring

Without knowing it, Obama is making Sturm Ruger & Co and Smith & Wesson too big to fail!

President Obama’s nomination of federal appeals court Judge Sonia Sotomayor to replace retiring Supreme Court Justice David Souter heralds yet another victory for gun-makers. Yes, you read that right.

Let me explain.

While most investors have been rightly focused on the crisis in the markets and economy lately, some Americans have been focusing on other political issues, namely the Second Amendment.

They wonder, will the Obama Administration and new Supreme Court nominee Sonia Sotomayor put the right to bear arms in jeopardy? Clearly, many think so, as evidenced by an increase in gun sales and an associated rally in gun stocks.

Indeed, two of my favorite gun stocks, Sturm Ruger & Co. (RGR) and Smith & Wesson (SWHC), rallied Thursday on the news of Sotomayor’s nomination. But it’s not just Sotomayor’s nomination that has been lifting the gun-makers. The recession has helped, too.

Buying protection

You wouldn’t think a recession as deep as the one we’ve been experiencing would be a boon to gun sales, but many citizens are arming themselves expressly because of the recession. You see, the recession has brought massive budget cuts to many municipalities. That means less fire and police protection. In response, gun sales are on the rise.

My response to this undercurrent is to recommend stocks that take advantage of the increase in gun sales.

Two of my favorite stocks to buy now make guns.

Sturm Ruger & Co. (RGR) is one of the leaders in the space, producing products across the firearm spectrum. The company is enjoying growing sales at a time of recession due to the political undercurrent. I rate the stock an A or Strong Buy.

Smith & Wesson (SWHC) was made famous by Clint Eastwood’s, “Dirty Harry” character. Some poor management decisions helped push SWHC to under $2 per share prior to the election last November.

But post-election, the stock has doubled in value. I expect more of the same until the administration can definitively ease concern regarding the Second Amendment.

I rate SWHC a B or Buy.

Another benefactor of the boom in gun sales is the sporting goods retail space. I have a good friend that owns a very small independent sporting goods shop. He can’t keep enough gun products on the shelves.

That bodes well for sporting goods superstore, Cabela’s (CAB). Retail sales have struggled during this recession, but gun sales are easing the pain for CAB. That, combined with expectations of economic recovery, have pushed CAB to pre-financial crisis levels.

I rate CAB a B or Buy.

The market is treading water due to the tug and pull of the inflation and deflation camps. The gun story though seems to be on a straight shot higher. Investors can benefit by following that trend.

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