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3 Big Upside Catalysts Next Week For Smith & Wesson (And One Possible Downside)


Monday August 28th (likely date): US Army will announce 3 Finalists to replace its stock military handguns currently made by Italian company, Beretta. SMITH & WESSON is a likely finalist.

Thursday Sept 1st: Smith & Wesson announces their May-July 2016 quarter earnings – after the close of trading.

Thursday/Friday Sept 1-2: FBI Firearm Background Checks for the month of August will be announced.

Smith & Wesson’s guidance for this quarter didn’t include spikes in consumer demand for firearms. The Florida shooting tragedy occurred just before their conference call.

Shares of Smith & Wesson (NASDAQ: SWHC) are likely to see some surprising interest next week as there are three significant catalysts on tap that market players may not be focusing on - yet.

Each of the three catalysts listed above will be explained in detail below.

But first, here is the Smith & Wesson stock chart that shows a 2-month consolidation in the $28-$31 range. SWHC has outperformed the S&P 500 Index (NYSEARCA:SPY) year-to-date by 30.7% vs. 7.6%.

On Wednesday, SWHC showed unusual relative strength with a volume and price surge starting at 10:30 a.m. and the stock closed up +1.5% - while the markets went sharply into negative territory into the close.

OK, now here are the 3 major catalysts for SWHC next week:


The U.S. Army plans to replace its standard Italian-made Beretta military sidearm and according to IHS Janes, a military hardware specialist, there were only a dozen companies that submitted bids.

This is likely to be a $1.2 Billion contract. Smith & Wesson is partnering with General Dynamics (NASDAQ: GD), who will provide the ammunition. It has been mentioned that the 3 finalists will be selected in August. August is almost over...

The announcement of the 3 finalists is very likely to be August 28, 2016 (or Monday August 29). Here's why...

It was exactly a year ago, on August 28, 2015 that the US ARMY sent out its request for proposals for the XM17 Modular Handgun System. Then, the deadline for submissions is at a 5 month milestone (January 28, 2016).

As the 3 finalists are to be announced in August 2016 per various reports, and the Army most likely planned for a year for the RFP, bidding and finalist selection, then it would be logical that on August...