Looking for a straight shooter? Here’s a look at Smith & Wesson (SWHC) (February 10, 2016)
Lets talk about a stock that’s getting over the hump and that’s Smith & Wesson ( NASDAQ:SWHC ). I’ve been talking about this for a while, bullish on it. And the reason is because, from a technical standpoint, from a fundamental standpoint (hey, I’m a second amendment guy), but from a technical standpoint the stock is drifting along its 50-day moving average. It had what looked like kind of a blow-off top, but the stock just basically reverted right back to trend. It didn’t reverse, it just came right back to its normal “drifty” trendline here.
So here’s the deal: This company is due to report it’s next earnings in almost a month. March 1st to March 7th is when the estimates are. So the stock is drifting sideways to up. I think here’s what you do: You go ahead and take a position in this stock. Assume that the uptrend is going to continue. As the stock starts to rise into earnings you can add to your position. And then you know what? When we get into March, we’ll just kind of figure it out and see what happens. So you take this stock now. Assume the stock is going to drift up into earnings. Background checks are up, which is a reflection, frankly, of how many guns are sold. Not a direct reflection, but close enough. So I’m bullish on Smith & Wesson ( NASDAQ:SWHC ). I think you’re going to make some money on this stock.
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