Love that Taser
While beleaguered Nortel Networks
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.
Add it up. Triple-digit growth and building cash. Love that Taser!
Fool contributor W.D. Crotty does not own any stock mentioned.