Who says value doesn't matter?
It's ludicrous to claim that Taser's (NASDAQ:TASR) value doesn't matter! History is littered with firms that died while folks claimed that value didn't matter. Any argument that a company's valuation doesn't matter is an attempt to ignore market history. How about:

  • The margin mania of the 1920s?
  • The "nifty fifty" stocks of the 1960s?
  • The dot-com bubble of the 1990s?

As soon as the pundits claim that a company's valuation doesn't matter, it's generally time to head for the exits at full steam.

So what if there are no current competitors?
An investing rule to live by is to never fall in love with a stock. Even Taser's near monopoly won't save it forever. Once again, history is littered with companies whose former monopoly statuses have fallen by the wayside to reveal their soft underbelly. How well is Ford (NYSE:F) doing, in spite of its early lead in the auto business? How about Xerox (NYSE:XRX) and the copier business? And Eastman Kodak (NYSE:EK) with photography? And let's not forget networking giant Cisco Systems (NASDAQ:CSCO). Even though it continues to dominate its market, its shares are trading nowhere near their highs.

And what electric growth prospects, exactly?
With a 22% drop in sales and a 95% drop in profits, growth is not evident in Taser's reported numbers. Add management's apparent intent to continue diluting shares, and the company just keeps having to work harder and harder just to stand still. Growth that makes its way to the current shareholders? I'll believe it after I see it.

If I want to gamble, I'll go to Argosy (NYSE:AGY) or Caesars (NYSE:CZR). At least there, I know I'll be entertained as I hand over my money.

Want to read the opposing viewpoint? Click here to read Seth Jayson's thoughts on Taser. Also check out Chuck's original argument, as well as Seth's rebuttal.

For an investment strategy that doesn't rely on the hopes of unstoppable growth, the dreams of a market without competition, or the perpetually broken promises of those who claim that value doesn't matter, try the perfect antidote, Motley Fool Inside Value . A free trial is just a click away .

Fool contributor and Inside Value team member Chuck Saletta has no financial stake in the companies mentioned in this rebuttal. The Fool has a disclosure policy .