Saf T Lok shares surge after gun accord

October 11, 1997|By BLOOMBERG NEWS

TEQUESTA, Fla. -- Shares of Saf T Lok Inc. rose 52 percent, soaring for a second day, after major gun manufacturers agreed to include a child safety lock with every handgun sold.

The surge in the Tequesta, Fla., gun lock maker's shares came despite comments from some gun producers that they do not plan to use Saf T Lok products.

Saf T Lok shares rose $1.5625 to $4.5625 after getting as high as $5.75 on volume of 18.4 million shares, making it the second most active stock in U.S. trading. The company has 6.19 million shares outstanding.

Saf T Lok shares now are up about 942 percent since Wednesday, when they closed at 43.75 cents.

Saf T Lok doesn't expect that the agreement will translate into higher sales for it anytime soon, because its products are more expensive than those of competitors, President John Gardner said.

The locks the manufacturers agreed to use will add $5 to $10 to the price of each handgun, according to White House estimates. That compares with the $50 wholesale price for Saf T Lok's combination lock that screws onto a handgun.

The run-up in Saf T Lok shares is "silliness," said Robin Sharpless, vice president of sales for handgun maker H & R 1871 Inc. of Gardner, Mass. "None of the gun manufacturers are going to buy their lock; it's too expensive."

Pub Date: 10/11/97

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