Through The Fly's Eyes: Taser

from Larry Ramer of Theflyonthewall.com


Taser Is Hitting Its Stride

Stun gun company Taser (TASR) is shooting into new markets around the world, and has won acceptance from the national governments here and in France, as well as thousands of police departments in the U.S. Taser develops weapons that emit 50,00 volts of electricity, temporarily incapacitating people.

The French police are reportedly going to spend $17 million-$33 million on the company's stun guns, and the French Interior Ministry ordered 1,249 of the company's weapons last month. The company recently received a follow-on order from the U.S. Marshals, and over 11,000 American police departments are utilizing Taser's stun guns. Even the U.S. Army has become a Taser customer, ordering 2,400 Taser weapons over the summer.

The company moved into the civilian market this summer, with a self-defense stun gun targeted towards women. The pink-colored weapon certainly has a huge potential market, and the company reports that the initial response to its civilian gun has been enthusiastic.

Taser does have more than its share of detractors and legal problems. Some people argue that the company's weapons, advertised as non-lethal, really do cause civilian deaths. But the courts don't seem to agree, as the company has never lost any of the 58 product liability lawsuits against it, and it has only settled a few low-cost cases involving police training accidents. Taser shares closed Friday down 18 cents to $17.87.

In today's world, where violence is increasing while tolerance for the use of lethal force by law enforcement officials and even armies is decreasing, Taser seems well-positioned for a breakthrough. Police can use Tasers instead of guns to subdue violent criminals without killing them. In places like Iraq, armies can utilize the weapons against people whom they believe may be trying to attack them, while at least drastically decreasing the chances of killing an innocent person.

The world is clearly discovering the advantages of Taser, as evidenced by its expanding customer base as well as its Q2 results and share price. In Q2, the company had a record $25.86M in revenue and a profit of 6 cent per share. Its stock has jumped from a low of $13.56 in August to around $18 today - healthy 32% increase. Investors may want to take a look at this stock, especially if it continues to penetrate new markets and win its court cases.