StreetInsider's 'Fear Trade' Pays Off in Spades (SWHC) (RGR) (WMT) (COST)

With the end of the world fast approaching, traders are eyeing shares of gun maker Smith & Wesson (Nasdaq: SWHC). On May 31st, StreetInsider.com highlighted the stock in its 'Guide to Investing for the End of the world'. Since then, shares have climbed 57 percent. Coincidence? Perhaps... or perhaps there are no coincidences (cue twilight zone theme song).

This afternoon Smith & Wesson reported FQ2 earnings, and the gunslingers did not disappoint. Smith & Wesson Holding Corp. reported earnings of 24 cents, in line with estimates, on record revenue of $136.56 million. Smith & Wesson also reported earnings guidance that was ahead of estimates for the third quarter.

Gun maker Sturm, Ruger & Co. Inc. (NYSE: RGR) was also featured in the Guide to Investing for the End of the world. Its shares are higher by 35 percent since then, excluding hefty dividend payouts.

Two other stocks featured in the report included Wal-Mart (NYSE: WMT) and Costco Wholesale Corporation (Nasdaq: COST). They are higher by 9 percent, 22 percent, respectively.

The fear trade, it seems, is alive and well. Enjoy it while it lasts.

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