While I've often said that I think Taser International (NASDAQ:TASR) has badly fumbled the ball on the field of public relations, a recent news nugget about would-be competitor Stinger Systems (OTC BB: STIY.PK) provides an opportunity to point out that there are even riskier bets in this space, though these operators may be trying to outmaneuver Taser in the old P.R. game.
Today, I noticed a story that's sure to be parroted across the press and may entice investors to look into Stinger. I'd think twice about that.
The news is that Joe "the toughest sheriff in America" Arpaio, sheriff of Maricopa County, Ariz., has said that he may consider no longer using Taser's conducted energy weapons in favor of a new model from Stinger.
(I found this blurb on the website for KPHO in Phoenix, which has a banner ad promoting the news team there as "Investigative." If that's true, I'd like to see KPHO follow up on the Stinger story by investigating this.)
Now, back to our story.
Why do I smell something so funny here? Probably because Stinger, like its CEO, has a history of being bigger on promotion than performance. That makes it a perfect match for the publicity-craving Arpaio. Taser's under the gun in the press, and Stinger and Arpaio see an opportunity to get some free P.R. at Taser's expense.
Keep in mind, Arpaio's the guy who's long grubbed for fame via prison policies that gather a lot of "Heck yeah" public support in the Wild West, even if some meet their ultimate ends in the courts. Examples include his (in)famous desert tent city, his forcing inmates to wear pink underwear, his boasts about paying more for dog food than prisoner meals, his refusal to provide transportation for an inmate who elected to have an abortion, and his long fight to keep live Web video of his inmates on the Internet.
If I'm reading the the KPHO report correctly, the price for Stinger's association with the famous lawman is a mere 30 "donated" stun guns. That's a lot of free gear.
That's why I suggest that investors view this not as an approval of Stinger's device, but a paid infomercial. It looks to me a lot like the compensated thumbs-up Stinger already arranged with the ostensible prison industry group "CERT Tactical Network." There, it looks as though Stinger bought an endorsement by promising to purchase advertising. Of course, the press release describes it differently, but the truth comes out in its fifth paragraph, where it states that "CTN's endorsement is part of a broader promotional agreement between Stinger and CTN, [whereby] ... Stinger will advertise on the CERTOps.com website and CTN will assist in promoting The Stinger . " (And CERT is now promoting a stun gun comparison test between Stinger and Taser on its website. Gee, I wonder which way that will go.)
This field is rife with products and promises of questionable potential, like the other "stun gun" from Law Enforcement Associates (AMEX:AID), a company that's had the audacity to claim it doesn't pay promoters to shill its stock, even though the evidence to the contrary was provided in the same press release. In other words, this is the Wild West, folks. And many of the Buffalo Billys out there aren't in this biz to make you rich. (In fact, I doubt that the latecomers will even make themselves rich.)
That's why, despite my reservations about Taser's direction and share price, I still think that investors who are looking for the next Taser would do best to stick with the old Taser.
For related Foolishness:
- Taser's not the only one under Securities and Exchange Commission scrutiny. Stinger's got a problem of its own.
- Are the folks at Law Enforcement Associates telling investors the truth?
- Somebody should get Taser a tissue.
Seth Jayson likes a little truth and honesty with his frontier justice. At the time of publication, he had no positions in any company mentioned here. View his stock holdings and Fool profile here . Taser International is a Motley Fool Rule Breakers pick. Fool rules arehere.
