This weapon is sold exclusively by Taser, which eliminates any middlemen eating into the company's high 44% operating margin. To understand the significance of that, consider the margins of a few companies with lighter business models: 30% at Coca-Cola
Those margins are one reason Taser was able to jump 42-fold in a 52-week period that extended into early 2004. The other is that orders continue to pour in for the company's existing products. With revenue growing 150% a quarter and profits growing even faster, the market notices -- and international orders have yet to pour in.
The company is innovating, too. New weapons systems are under development with General Dynamics
There is negative press. Dow Jones'
Taser has many of the traits that characterize Motley Fool Hidden Gems. The company has high insider ownership, is generating free cash flow, has a well-established market niche, and is growing revenue and profits. But hidden it is not! The company has a $1.1 billion market capitalization for only $46 million in trailing sales.
Taser now has a weapon for the general population. It may just be right for you. But if you are looking for a stock -- a hidden gem -- ready to explode when it is discovered, Taser is not for you.
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Fool contributor W.D. Crotty owns stock in Motley Fool Stock Advisor recommendation Marvel and has a subscription to the Motley Fool Hidden Gems newsletter. W.D. does not own stock in any of the other companies mentioned.