|For today’s bulletin, we take a look at Dick’s Sporting Goods $DKS. We also provide a link to download a FREE STOCK REPORT on the company.
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We have seen numerous school shootings and mass attacks with guns in the US over the years, but the latest massacre in Broward County, Florida seems to be having some effect on the gun control debate despite the inaction–so far– at the government level.
However, numerous corporations have severed ties–and incentive programs–with the NRA gun-lobby group in the aftermath of the Parkland school shooting.
We saw a major move on that corporate front today from the CEO of Dick’s Sporting Goods, Ed Stack.Stack announced this morning that the Pittsburgh, PA-based sporting goods company will no longer sell “assault-style” weapons and high-capacity magazines in its stores. These weapons and accessories have been the weapon of choice for the most horrific massacres in recent years.
Stack noted that “to think about the loss and the grief that those kids and those parents had, we said, ‘We need to do something.’ And we’re taking these guns out of all of our stores permanently.”
Stack also announced that the company will no longer sell long guns to customers under the age of 21.
Of course, it remains to be seen how much of a sacrifice or hit this will be for the firm since they removed these sorts of weapons from their flagship Dicks stores years ago and limited their sales to their Field and Stream chain. That action occured in the aftermath of the massacre of 20 first-grade students and six of their teachers at Sandy Hook elementary school.
Dicks may also be thankful to be able to take this action without greater negative publicity given the fact that the shooter in Florida was in possession of a shotgun purchased at one of their stores.
Of course, few issues in the US spark more controversy than gun control. While the firm may be on solid ground with city and suburban customers with this decision, rural customers may decide to no longer shop there. How this effects the bottom line will be interesting to examine over the next few quarters.
The initital reaction has been positive. But, with past massacres the NRA has typically laid low and worked behind the scenes to ensure tha no action is taken in Congress while they also take steps to reward candidates who toe their line. The NRA may have less clout with big retail chains whose sales are not totally tied to rural consumers.
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ValuEngine continues its HOLD recommendation on DICKS Sporting Goods for 2018-02-27. Based on the information we have gathered and our resulting research, we feel that DICKS Sporting Goods has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio but UNATTRACTIVE Momentum.
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