There have been some gun related news stories over the past few weeks that I want to make note of.
1. Vista Outdoor is selling off their ammunition business to Czechoslovak Group a.s. for $1.91 billion. The Vista Outdoor ammo business includes Speer, Remington’s ammo side, CCI, and Federal.
I can’t find as much information as I would like about Czechoslovak Group. It looks like they currently own Fiocchi, and they are not the same company that owns Colt CZ Group. Czechoslovak Group seems to be big in the defense industry, with the sporting ammo component being relatively small. Perhaps they are looking to expand?
…
So it looks like what’s going to be left of Vista Outdoors Revelyst is going to be fishing, camping, golf, cycling helmets, Camelbacks, and golf. Disclosure: the “gun hedge fund” (which is neither a hedge nor a fund) owns some shares in Vista Outdoor, and may make some money off of this. Vista Outdoor has been one of the best performing stocks in the group, though it’s down considerably right now. ($24.81 a share as I write this.)
You shouldn’t take financial advice from me, but I really don’t see “Revelyst” being a growing business, or one I’d be interested in continuing to invest in.
2. I’m having trouble finding what I think of as really reliable sources for this, but: “According to multiple news sources, the Lake City ammo plant has cancelled all of its commercial contracts.”
This is swell news, he said with some sarcasm, as Lake City produces an estimated 30% of the 5.56 ammo on the civilian market. So if you thought things were rough before…suck air, grab clusters, and stock up on 5.56 if you find it at a good price.
My first thought was that this was stealth gun control by the Sleepy Joe administration: if they can’t restrict the guns, why not restrict the ammo? (“Reloading? What’s that?”) A more rational thought (and what seems to be the conventional wisdom) is that the government is stockpiling ammo, both to refresh the Ukraine and against a possible land war in the Middle East.
Disclaimer: the “gun hedge fund” (see above) also owns stock in Olin Corporation. Olin runs the Lake City plant under contract, and our Olin stock has been the best performer overall in the fund. As a matter of fact, our Olin stock is the only stock in the “fund” that’s currently in the black. ($48.12 a share as I write this.)
3. The Recoil website reported this about two weeks ago: BATFE has banned importation of “non-lethal” training ammo unless it is for use by military or law enforcement customers.
Maybe.
So far, it seems like the only report of this is on Instagram. The post is actually a letter a company called Ultimate Training Munitions sent to Sage Dynamics, but this is backed up by a statement on UTM’s website.
The other big maker of “non-lethal” training ammo is Simunition, which apparently imports from Canada. As far as I know, they have not made any public statement on this yet, even though they have been asked by Recoil, and I assume other outlets.
It is unclear what authority BATFE has to ban import of “non-lethal” training ammo. Perhaps the “sporting purposes” clause. Then again, when has BATFE ever gotten hung up on pesky questions of “legal authority”?
My best guess on the BATFE and a possible ban on non lethal training ammo is not because they give two hoots about the actual product, but to keep pushing the envelope on the Chevron defense, which the SCOTUS has agreed to review with 2 cases scheduled for January.
If the agency keeps on issuing rulings about things involving firearms and other areas of it’s purview, they may hope that will somehow influence the Court to lean towards seeing how that it is important for them to be able to do such things, since they know better than any congress person.
I of course disagree with the BATFE if that is their strategy, as well as their thinking. They have shown in recent years that they are one agency that needs to be reigned in, with rule making that is obviously outside of their lane as well as unconstitutional. I might be totally wrong, likely I am. That was just the place my mind went as I read this. Because I could not think of any possible rational reason to ban something that helps civilians to be a safer and more competant gun handler.
I know, spelling error. Competent.
pigpen:
Actually, I hadn’t thought about it that way, but your Chevron theory makes a lot of sense to me.
And it’s not like I don’t make speling erors, either.