The Wall Street Journal in its December 17 edition cautioned investors to “cut their exposure” in publically traded gun companies Smith & Wesson and Sturm, Ruger & Co. because of “so much gun demand already pushed forward.”

The respected New York financial newspaper cited Ruger’s 74 percent surge in gun sales in the first nine months of the year as part of what the Journal described as panic-buying spurred by fears of restrictive gun laws courtesy of President Barack Obama.

However, since no such gun legislation has materialized, the Journal said, the mad rush to stockpile firearms suddenly abated. The Journal cited Smith & Wesson’s precipitous decline of 46 percent in sales-booked-ahead in October with 30 percent of the decline coming from cancelled orders.

Meanwhile, S&W’s stock price was $3.95 on the day of the Journal’s report, down nearly 50 percent from its 52-week high. The Journal also noted that November background checks for the purchase of firearms fell nearly 20 percent from a year earlier, according to the Federal Bureau of Investigation.

During this time, the Insider has documented an industry-wide sales slump. One manufacturer of aftermarket AR-15 magazines recently reported a cancellation of 40,000 units from one distributor alone. A longtime industry observer told the Insider that the slowdown began around Easter and accelerated through the summer.

When the Journal referred to “so much gun demand already pulled forward,” what they meant was that consumers stocked up in the early part of the year and that those same consumers won’t be buying again for some time to come. This doesn’t mean that shooters won’t continue to buy guns, but that a good deal of their “gun money” has already been spent.

The Insider is of the opinion that a refocused Obama might well turn his eye toward such long-cherished liberal-agenda items as gun control once he accomplishes his major priorities. If that happens, Smith and Ruger stock will skyrocket. The buying binge will be back.