Firearms Stocks Recommended

I subscribe to the Money and Markets email list. Today's email listed three picks as possible good choices for investors. Pick number two was:

Guns
Exchange-traded examples include Sturm, Ruger & Company (RGR) and Smith & Wesson (SWHC). Smith & Wesson has been a doormat until recently. But both it and Ruger enjoyed nice moves in the past couple weeks.

While Smith & Wesson has announced big plans for future growth, I prefer Ruger.
Its revenues and earnings are increasing, and the company's backlog in orders jumped 72 percent from the 3rd quarter to the 4th quarter.

Why is the outlook improving for gun manufacturers?

Maybe because while other industries are sliding down a slippery slope of lower demand, the output of U.S. small arms manufacturing is forecast to grow at an annual compounded rate of 2 percent between 2008 and 2013, as seen on the following chart ...

While others are in the perverbial toilet, firearms appears to be a safe investment for the time being.