Shares of Smith & Wesson Holding Corp., the world's largest gunmaker, rose 12 percent Tuesday, following a almost 6 percent gain on Monday, after news of Obama's plans to tighten USA gun laws was reported last week.

Gun owners may not like it when President Obama talks about guns. The president is also proposing new investments for mental health access, research into gun safety technology and additional Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents and investigators, although Congress would have to approve that funding.

Spokespeople for Smith & Wesson and Ruger did not respond to requests for comment. At gun shows, websites and flea markets, sellers often skirt that requirement by declining to register as licensed dealers, but officials said new federal guidance would clarify that it applies to anyone "in the business" of selling firearms. Gun sales in Ferguson, Missouri, soared in the months following protests that came as a response to the police killing of black teenager Michael Brown in August 2014.

"As the firearms industry has seen numerous times before, the threat of gun control legislation again appears to be driving near-term retail sales acceleration, as consumers rush to dealers to purchase firearms they believe may one day become unavailable".

Smith & Wesson's trading update said that for the three months ending 31 January it expected sales to be about $175m-$180m.

The chairman of Navellier Associates said he hasn't gotten any pushback from investors concerned about profiting from gun stocks.

Smith & Wesson and Sturm Ruger benefited from this demand throughout 2015.

Brian Ruttenbur, an analyst at BB&T; Capital Markets, upgraded Smith & Wesson from "hold" to "buy".

In December, adjusted background checks showed a 38 per cent increase from a year earlier, Mr Krueger said.

But the talk of tighter gun control nonetheless has the effect of promoting gun sales.

Mr. Obama announced his executive action on Monday in an emotional speech that referenced the shootings at Columbine and Sandy Hook.

The FBI was flooded with a record number of requests for background checks a year ago, including more than 3.3 million in December, following the terrorist attacks in Paris and San Bernardino, Calif.

According to a press release, "the sell-through rate of its products at distribution has been stronger than originally anticipated, resulting in reduced distributor inventories of its firearms".

Even before the White House unveiled the gun control measures, Republicans were criticizing the president for what they said was an abuse of authority.