Taser International (TASR) wins back investors
Yesterday, Stun Gun maker Taser International (NASDAQ:TASR) reported “a great quarter, the best in our history," Chairman Tom Smith said in a conference call with investors. Net income grew to $2.3M, or 4 cents per share, in Q4 2006, from $179,126, or break even per share, in the year-ago period.
Taser has had a love/hate relationship with investors - back in 2004, Wall Street could not get enough of the company. Shares rose and split a total of 3 times just that year. Everyone loved Taser, that is, until the lawsuits started rolling in.
The question is: Is it finally safe to invest in Taser again?
TASR has won 31 straight wrongful death or injury lawsuits, with the judge either dismissing the case or ruling in their favor. The Stockmasters like Taser's track record so far, but it’s been expensive. The good news is that they are expected to make their final litigation settlement of $8M late in Q1 of this year. Taser has increased profits for 4 straight quarters now; with their court battles out of the way, we expect more good things to come in the future.
Last month James Altucher put together a list of stocks that he thinks will surprise Wall Street in 2007 and Taser was one of them. Taser (TASR) believes more 
U.S. law enforcement agencies have included Tasers in their 2007 budgets, international opportunities appear to keep growing, and their new products are worth checking out. Shares are trading around $2 above its 52-week low, plus as an added bonus Tasers were featured in Van Damme's 1994 masterpiece, TimeCop. Anytime you can capitalize on Jean-Claude Van Damme it's an opportunity that screams good sense and good investing. However the Motley's Fools investor intelligence database gives TASER just two stars. Man, the Stockmasters needs to get on the ball and create an "investor intelligence database" on the double. We'll get right on that, just as soon as the whole team sits down and watches TimeCop, beginning to end.
We suggest that if you invest in Taser, why not help the company out by buying a Taser yourself?
Top 5 reasons why you need a Taser
- After a heavy night of drinking with the guys, the first one to pass out gets Tazed
- Your new puppy takes a big dump on the floor - can the Taser be used as a potty training tool? I think so.
- Life has worn you down; it’s time to check out. Draw a hot bath, turn your Taser on full blast, and drop it in the water. Problem solved.
- Hate panhandlers? Me too. Give them a taste of your Taser next time they beg for your change.
- Wife cooks a horrible dinner, whip out the Taser for revenge as payback for the defilement of your taste buds
If you need more firepower, check out the Taser Cannon. The cannon consists of 30 high pressure pneumatic dart stations, each capable of launching a tapered aluminum sabot that trails a thin 'seed wire' 0.008 inches in diameter. Every household should have one, it keeps away pesky solicitors, and scares away relatives you don't like.
Article written by: Eric Cheshier
Article posted on:
February 22nd, 2007
Disclaimer: The Author does not own any stock or long/short positions of the securities mentioned in this publication.
