WOOD Flash – Ceska zbrojovka Group: Democrat majority increases prospects of stricter gun regulation in the US
With the Democrats clinching the majority in the US Senate, the Biden (Democrats (D)) win in November 2020 and the broad public support for tighter gun control, we believe the likelihood of stricter regulation being passed has increased. However, we do not see this as a clear negative for Ceska zbrojovka Group’s (CZG) investment case, as the regulation is likely to have a limited impact on its current civilian offering; while historical evidence suggests that any heightened risk of stricter regulation usually triggers stocking-up behaviour among consumers (gun sales during the Obama years grew from 9.4m units in 2008 to 16.6m units in 2016). However, we highlight that the potential Colt M&A (announced in November 2020) could increase this risk, given Colt’s exposure to the AR-15 rifle market (originating from the M16/M4 fully-automatic military rifles).
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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