Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why TASER Shares Were Zapped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of TASER International (NASDAQ: TASR  ) , a manufacturer of electronic control devices for law enforcement, corrections, and personal defense, dropped as much as 15%, following the release of its fourth-quarter earnings results.

So what: For the quarter, TASER recorded a robust 51% increase in revenue, to $32.1 million, and turned in a profit of $0.07, reversing a year-ago loss of $0.11 in the same period. TASER noted that the jump in revenue was primarily from law enforcement agencies upgrading to its latest taser device, the Taser X2. Wall Street had been expecting $30.5 million in revenue, and a profit of $0.07 for the quarter.

Now what: This appears to be a simple case of investors opening their eyes, and realizing they were paying 30 times forward earnings for a company that "only" met Wall Street's profit projections. Although the boost in revenue from law enforcement was very nice, I believe most traders (not investors) moved into TASER in recent months because of the increasing fear of tougher gun control laws. Rather than resulting in better sales for TASER, it is actually causing sales at both Sturm, Ruger (NYSE: RGR  ) and Smith & Wesson (NASDAQ: SWHC  ) to soar, as consumers load up (no pun intended) on weapons prior to any proposed legislation. Perhaps, if and when tougher gun laws are in place TASER's private sales will soar; but until that point, it seems foolish to chase TASER at these levels.

Craving more input? Start by adding TASER International to your free and personalized Watchlist so you can keep up on the latest news with the company.

Is this stock a surefire winner?
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report, "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2270327, ~/Articles/ArticleHandler.aspx, 9/29/2016 3:08:12 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,206.90 -132.34 -0.72%
S&P 500 2,157.38 -13.99 -0.64%
NASD 5,286.39 -32.16 -0.60%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 2:52 PM
TASR $28.98 Up +0.13 +0.45%
Taser Internationa… CAPS Rating: ****
RGR $57.56 Up +0.30 +0.52%
Sturm, Ruger and C… CAPS Rating: ****
SWHC $25.93 Down -0.07 -0.26%
Smith and Wesson H… CAPS Rating: ****