Smith & Wesson Reports Earnings Today - Expect Good News

June 22, 2009

Smith & Wesson (SWHC), one of my favorite gun stocks, reports earnings today after the close. I expect the news to be good.

SWHC reported on Friday that it will acquire Universal Safety Response, Inc. (USR), a full-service security systems solutions provider, for up to 9.7 million shares of common stock and up to $26.2 million in cash. The deal gives Smith & Wesson a stake in the perimeter security market and allows the company to expand its revenue base into commercial, non-firearms categories.

Of the acquisition, William F. Spengler, EVP and Chief Financial Officer for Smith & Wesson, said, "The acquisition of USR is expected to close in late July 2009 and therefore it does not impact our financial results for fiscal 2009, which concluded on April 30, 2009.

Smith & Wesson is a strong buy.

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