Speaker 1 (00:00):
Hi everyone. This is John Denton from the local conservative coming at you with yet another exclusive video just for you guys, we’re going to talk about some of the major issues that impact hardworking people like you in these videos. That’s why they’re so important and why you really need to pay attention. And a lot of you are constantly asking me about the best ways to make money and grow your investment accounts, especially with all the uncertainty. That’s a bounding right now in the market, in our society and in politics. And thankfully today I’ve got my good friend, Tim, Melvin, joining me again to talk about an extremely timely opportunity for you to make money in the market. Tim has the insight. He’s the only guy that has it, that you’ll need to make this trade work. And so, Tim, thanks for joining me,
Speaker 2 (00:41):
John. Thanks for having me today. It’s great talking with you again, and I want to talk about something that the new administration in the new environment in Washington, DC is creating. Now. We don’t like a lot that’s going on in DC. Amen.
Speaker 1 (00:55):
That is the truth. There’s a long list there, man. No, no.
Speaker 2 (00:58):
Right. But some of it is actually creating a tremendous opportunity for investors who spot what’s going on and move immediately to take advantage of it. Right now. I joke all the time that the greatest gun salesman in the history of the world was Barack Obama. I knew you were going to say that. I got, I got, gotta tell you I’m gunstocks back then. And it was good for 500 or a thousand bucks. Every time the man said the word gun, cause they would just go hire. People were afraid that they would get taken away. And it looks to me like Joe Biden, who is teaming up with Antifa. And I think they were working together real hard to break all of Mr. Obama’s records because gun sales are going through the roof right now. Absolutely. And you know, Biden tries to present this as common sense gun control, but then he starts talking about things like banning so-called assault weapons, which are just rifles.
Speaker 1 (02:00):
Right? What do they mean by assault weapon? Right. You know what I mean? Come on. If
Speaker 2 (02:04):
You take an AR 15 and put a different barrel in stock on it, it looks a lot like your daddy’s deer rifle. Exactly. They’re also talking about, you know, high capacity magazines, which in their world is anything over 10 rounds. Yeah. Well my, my automatic, my nine millimeter came stock with a 17 round magazine because they want me to give that up. So there’s going to be a tremendous opportunity here because gun sales are going to go up now. Okay. The current administration says, oh, you know, this is necessary to fight crime. Now let me ask you something. John, what percentage of gun-related crimes or crimes involving a gun, do you think are committed each year with a legally owned and registered firearm? Beats me. You’re going to have to surprise me 6%.
Speaker 1 (02:53):
Wow. I didn’t realize it was that. Okay. I think
Speaker 2 (02:55):
That failure’s not from the NRA or anybody else. That’s right out of the FBI data. So the
Speaker 1 (03:01):
Most they talk you want, they want you to think it’s, you know, 80, 90%, no.
Speaker 2 (03:06):
Most gun owners are responsible gun. Okay. It’s you know, I’m a gun owner. We have a budget. We have a bunch of guns in the house. Okay. Nope. Today nobody’s been shot that got, none of those guns have walked out of the closet and shot buddies. And if we don’t have a gun problem in America, we have an illegal gun problem in America. We’ve got last year was ridiculous. You know, the civil unrest started in the streets. A lot of peoples, particularly in urban areas did not feel safe anymore. We saw a huge swell of first time gun buyers last year, people that never thought they’d buy a gun. Women in particular just went nuts, buying guns last year, 40% of this massive amount of guns that were sold in the country were either minorities or women who said they just did not feel safe walking around the community anymore so that hasn’t gone away. It’s not going to go away.
Speaker 1 (04:08):
Well, we expect, especially with all the talk about defunding the police, what do they expect is going to happen with people, especially these demographics. Like you pointed out that traditionally haven’t necessarily been pro gun or haven’t necessarily wanted to buy guns. And now, now they’re going to want to, when they know that there aren’t gonna be any police officers to help them make something happen. Right? And if
Speaker 2 (04:24):
You look at the statistics, crime statistics in Minneapolis and Baltimore police have been more or less defunded it’s really bad folks. It’s it’s not pretty at all. So gun sales are going to continue going up. The last year we saw 39.7 million background checks for guns won more than one in every 10 Americans bought at least one firearm last year. That’s insane for one year. This year through the end of June, we’ve got about 22.2 million new firearms applications being applied for. So guns are selling. Now it’s gotten, it’s gotten to the point. I will tell you, we love going to the range. We’ve had to cut back a little bit, John. We can’t go as much as we used to simple truth. I can’t find any bullets.
Speaker 1 (05:12):
I knew that’s what you were going to say because my range time, I, well, for FBI agents, for CIA agents out there listening, I used to have a lot of guns. And then I had a unfortunate boating accident. And they’re now at the bottom of a lake. So no bother anyway, serious note. Yeah, the, the ammo thing that, you know, my dad who’s a gun nut just finally got his hands on some ammo after looking for two and a half years for this particular caliber. And he was a static. So you’re right. That’s, that’s one of the big problems. So with that ammo shortage, which has been going on for a while now and trying to find ammo, what can we do? What can people do?
Speaker 2 (05:52):
Well, there’s a tremendous surge in demand for guns. So it makes sense own guns to the companies that make guns what’s going on here is we’ve had a pullback in some of the gun stocks cause they had shot higher. And then when the permit numbers came out, they were a little bit behind last year’s record-setting historical pace, right? So people took profits in guns, probably a huge mistake, their mistake, our opportunity. So my favorite gun manufacturer is Smith and Wesson. I will tell you, you know, it’s like some people are Chevy. Family of four family were Smith and Wesson family. And we have, we have several of their products around the house. Now, this company last year for the first time surpassed a billion dollars in sales, they shipped 2.6 million rifles and handguns. Last year sales are at a blistery base. They’re up 70% year, over year.
Speaker 2 (06:44):
So far this year going to be about a 700% increase in earnings, but the stock has been pulling back a little bit. So this is kind of a chance to look at the stock and say, we can get in here management. I love management. This company. I would love this management, no matter what business they were in. They’ve all been with the company an average of 19 years. They all have over 25 years experience in the firearms industry. They know what they’re doing. More importantly, they understand finance. John. I talk a lot about shareholder yield buying back stock, paying dividends and paying down debt Smith and Wesson has a hundred million dollars net in the bank and no debt. So they can’t pay down any debt. But management stated goal with all this cashflow being generated is to buy back stock and steadily increase that dividend.
Speaker 2 (07:31):
Both of those are going to make the stock go higher over time. This is an incredible opportunity as the stock is pulling back. Now it’s in the $25 area and you know, $25 is okay. I would pay $25 for the stock here. That’s a oh, about a 12, 12 multiple of next year’s earnings. But I am a notorious cheapskate when it comes to the mining stocks. So yeah, 12 times earnings is it’s okay, but I’d rather buy it at about 10 times earnings, which is about 20 bucks a share. So $25. That’s great. But come back tomorrow, John, and I’m going to show your listeners how to buy this stock right now for $20. In spite of the fact that it’s trading at 20, you’re
Speaker 1 (08:18):
Going to show us how we can get even cheaper.
Speaker 2 (08:20):
You got, yes. I’m going to show you how to get Smith and Wesson cheaper and even pad your bank account just a little bit in the process of doing so, so ran out of time today, but come back tomorrow and we’ll talk about exactly how to do that.
Speaker 1 (08:31):
Well, that sounds great. And thank you again, Tim, for taking time out of your busy day to speak with me. I know our viewers appreciate it. My readers that are local conservative and we’ll come back for the next video tomorrow. And you’re going to explain to us how we can get Smith and Weston for $20 instead of 25. Right? Exactly. Awesome. Thanks again, Tim. Really do appreciate it. Talk to you tomorrow, John. Great talking awesome. And everybody, this has been John din for local conservative. Thank you for watching and join us next time for the next video. Remember Tim is going to show us how we can get this Smith and Western stock for even cheaper. Talk to you next time.
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