Love That Taser

Love that Taser (Nasdaq: TASR  ) ? OK, the title is not about sleeping with a nonlethal X26 weapon under your pillow. It's about revenue guidance.

While Wal-Mart (NYSE: WMT  ) is saying that earnings are tracking the low end of estimates, Taser is saying, "Guess what? Business is good. It's so good that we are raising the revenue forecast by 50%. Yes, we expect revenue to be up 150% this year." Bravo!

While Walgreen (NYSE: WAG  ) reported another double-digit increase in revenue and earnings, Taser is talking about its second year of 150% growth. In the world of the tortoise and the hare, Taser is definitely the hare.

While beleaguered Nortel Networks (NYSE: NT  ) rises on hopes that cash-rich Cisco Systems (Nasdaq: CSCO  ) may be interested in it, Taser shares are surging 15% in the pre-market because of excellent business news. So why are shareholders who purchased this hare in April pulling their hair out?

Taser hit an all-time high in April. From that point to Friday's close, the stock has lost a stunning 60%. Ouch.

Before you cry too many tears for those nursing big losses, consider that over the last 52 weeks (measured as of Friday's close) the stock has soared 1,300%. That's still the kind of gain most investors dream of -- Taser under the pillow or not.

In January, the fuss over Taser was about a stock selling for 200 times trailing earnings. Well, it's trading at 94 times earnings now. But the stock market is a leading economic indicator. Is that too high a multiple for a company growing 150% a year? Hardly.

Try this number on for size: Taser is selling for 33 times 2005 estimated earnings. Given that view, and the company's growth record, you can see why the market got carried away to the upside. Or did it? Only time will tell.

Solectron (NYSE: SLR  ) and Corning (NYSE: GLW  ) may be making news today because of improved business fundamentals, but look at their balance sheets: big debts. Look at Taser's: growing net cash.

Add it up. Triple-digit growth and building cash. Love that Taser!

Spend time talking to other investors about Taser or turn your attention to Law Enforcement Fools on the Fool's discussion boards.

Fool contributor W.D. Crotty does not own any stock mentioned.