Well, it appears that Tim and I both have the same concerns about Taser (Nasdaq: TASR ) -- namely, the company's tardiness in filing timely financial statements with the SEC, and product liability lawsuits. We're also in agreement regarding Taser's current leadership in its space and the stunning potential of the stun gun market, estimated by Tim to be in the ballpark of $4.3 billion. Tim sums it up well in his Foolish bottom line:
"Bad publicity. Nagging lawsuits. Questionable disclosure. It all sounds bad. And you know what? It all is, to an extent. Most smart investors needn't take a chance on TASER. Only the Rule Breakers dare touch this one "
I couldn't agree more, so what's there to argue about? For starters, I don't think inept competition is the real concern. It's not the competition holding Taser back; it's Taser holding Taser back because of all the company-specific issues currently surrounding it. If you're a Taser-touter, you're willing to put up with the uncertainty surrounding the recent errors and delays in its financial statements, a potentially material or adverse judgment against the company in one of its 49 product liability, and continual concern regarding management's credibility, which ranges from questionable insider trading to its forthrightness in informing investors on company developments.
Call me a Taser-doubter for the time being. For me, it's all too difficult to decipher and outweighs any potential market opportunities available to Taser. Ever since attending the Berkshire Hathaway meeting earlier in May, I've remembered the following quote from Charlie Munger with each investment I consider:
"You should find something to invest in and then compare everything else against that. That's your opportunity cost."
In my opinion, if you're feeling rebellious, there are plenty of stocks that are able to meet SEC filing deadlines, don't have major litigation issues, and also have huge potential in fast-growing or large markets. For starters, check out a number of the health-care companies in our Rule Breaker picks, such as Aspect Medical Systems (Nasdaq: ASPM ) .
It definitely depends on how much rebellion you have in you and on your interpretation of the issues in what tends to be a very polarizing stock. As Dirty Harry might ask, are you feeling lucky?
Still feeling rebellious? Ask us for anall-access passto Motley Fool Rule Breakers and find out which stocks are helping the portfolio scorch the market's average return, 18% to 7%.Go ahead. It's free for 30 days. All you have to lose is the prospect of richer returns.
Think you're done with the Duel? You're not! Go back and read the other three arguments, and then vote for a winner.