Why Taser May Shock You
Erin is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
You need TASER International, Inc. (NASDAQ: TASR), in your back pocket. The company that makes the TASER® X26™, TASER® X2® electronic control device (ECD) and TASER cartridges is only getting better- and people are noticing.
Just last week the Fool's Seth Jayson said, “On a trailing-12-month basis, raw materials inventory was the fastest-growing segment, up 13.6%. On a sequential-quarter basis, raw materials inventory was also the fastest-growing segment, up 0.7%. TASER International seems to be handling inventory well enough, but the individual segments don't provide a clear signal. TASER International may display positive inventory divergence, suggesting that management sees increased demand on the horizon.”
He was right. Today Taser announced six significant orders were received and shipped in the fourth quarter of 2011 to the Chicago Police Department (680 X2s; 4,900 TASER® cartridges), Pennsylvania State Police (PA) (10,464 X2s; 10,464 TASER® cartridges), an unnamed major U.S. city (250 X2s; 1,750 TASER® cartridges), Lee County Sheriff's Department (FL) (170 X2s; 500 TASER® cartridges), Sunrise Police Department (FL) (165 X2s; 1,032 TASER® cartridges), Cary Police Department (NC) (155 X2s; 930 TASER® cartridges) . That is 16,104 X2s and 19,546 cartridges in domestic sales only.
The company received additional orders in the fourth quarter of 2011 from international customers for 65,000 TASER cartridges. The revenue associated with these orders will be recognized in the first quarter of 2012.
TASER also announced that it received and shipped six previously unannounced orders for TASER AXON™ on-officer camera system and EVIDENCE.com™ storage and management service that will be recognized in the first quarter of 2012 when all the deliverables are met.
Last August, during the Occupy Wall Street effects, TASER significantly outperformed the market and saw its shares climbing upward.
In short, people are buying Taser products, and they are buying shares in this company.
On a different day, Seth Jayson also said, “the CCC trend at TASER International looks good. At 127.4 days, it is 29.8 days better than the average of the past eight quarters. With quarterly CCC doing better than average and the latest 12-month CCC coming in worse, TASER International gets a mixed review in this cash-conversion checkup.”
This is a company that is beating the market right now, with good cash flow, a strong, upward trending stock, an excellent product that sells well, and has great name recognition. This is one, very affordable stock, to keep an eye on.
The Motley Fool has no positions in the stocks mentioned above. ErinAnnie has no positions in the stocks mentioned above, but does own a Taser (and knows how to use it!). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.