Investing

Civil Unrest Creats Major Moves in Personal Security Related Companies

Jon C. Ogg

Published: June 1, 2020 10:34 am

Investors and speculators can find a reason to trade almost any sort of instrument based on current events. The focus at the end of May and start of June in 2020 rapidly has turned from COVID-19 coverage to widespread civil unrest. The protests in the wake of the death of George Floyd have turned from peaceful to many instances of widespread rioting, looting, violence and other actions, and it is creating a series of curfews and other lockdown efforts in many cities in America.

Many of the gun, personal safety and related security stocks saw their shares surge on Monday, June 1, 2020, in response to the current events. Many of these stocks are micro-cap, and they tend only to have severe price moves around isolated periods of unrest and violence.

As with all companies and equities, investors need to conduct their own due diligence. That is particularly the case for companies that most people have never even heard of.

These are the top security, gun and related movers from Monday, but it should only be considered a partial list.

American Outdoor Brands Corp. (NASDAQ: AOBC) is the company you used to know as Smith & Wesson, so it should need no other explanation. This one was up 9.5% at $11.82 shortly after the opening bell. Its 52-week trading range is $5.51 to $11.84, and that high is from this same day.

Axon Enterprise Inc. (NASDAQ: AAXN) is the company that the public knows for its TASER stun guns. Its stock was up 13% at $86.20, with a 52-week range of $49.80 to $90.10.

Cemtrex Inc. (NASDAQ: CETX) was last seen trading up 150% at $2.34, with more than 25 million shares changing hands in the premarket and in the first 15 minutes of trading combined. Its 52-week range is $0.60 to $5.39, and its market cap is only $22 million. Cemtrex makes wearables and other smart devices that serve security and surveillance, among other industries, and it has video monitoring and facial recognition.

Digital Ally Inc. (NASDAQ: DGLY) makes wearable cameras for law enforcement. Its shares were up 85% at $2.07 on Monday morning, in a 52-week range of $0.64 to $3.25. To show the interest, its volume was more than 10 million shares with premarket and the first few minutes of trading combined. Its market cap is only $18 million, with 2019 revenues of just $10.4 million.

Everbridge Inc. (NASDAQ: EVBG) was already up and winning during COVID-19, but the company allows organizations and enterprises (including governments and law enforcement) with mass notifications to individuals or groups ahead of, during and after disasters and other emergencies. On top of severe weather alerts, it sends alerts regarding workplace violence, terrorism, power outages, environmental alerts, mass hacks or IT breaches and so on. It was up only 2% at $149.00, and it has a 52-week range of $59.85 to $165.79.

Mace Security International Inc. (MACE) has been long forgotten by the investing community due to its small size and not being on a primary exchange, but it is the maker of the pepper spray. Mace Security shares were up 33% at $0.21, in a 52-week range of $0.02 to $0.37.

Olin Corp. (NYSE: OLN) is diversified in chemicals and coatings, but the company also owns the Winchester brand of ammunition. Shares were was last seen up 6.5% at $12.81, and the 52-week range is $8.76 to $22.91.

Sturn, Ruger & Co. Inc. (NYSE: RGR) was last seen up 7% at $66.90 on Monday, with a 52-week range of $38.44 to $68.17.

VirTra Inc. (NASDAQ: VTSI) is into “use of force” training and provides training services and accessories for law enforcement, military, educational and civilian use. It was last seen up 41% at $3.22, with a mere $24 million market cap and a 52-week range of $2.00 to $5.30.

Vista Outdoor Inc. (NYSE: VSTO) has many other products that are not just for hunting and shooting, but it’s the top independent manufacturer of ammunition. The stock was last seen up 20% at $11.69, and its 52-week range is $4.29 to $11.91. That high was from this same day.

Companies tied to home and business security services were also higher on Monday. Alarm.com Holdings Inc. (NASDAQ: ALRM) was up 2.6% at $48.55, and ADT Inc. (NYSE: ADT) was up 6.9% at $7.58. Vivint Smart Home Inc. (NYSE: VVNT) was up just 1% at $11.60, and its trading volume was still quite thin.