Taser (TASR): Expensive, Over-Loved and Cruising for a Bruising

From time to time I’ll write a little report on a stock to keep a record of my own thinking.  I just finished one on Taser (TASR) which reports 2nd quarter earnings before the open on Monday (7/23).  I thought people might be interested in it so I’m posting it.

A year-to-date chart of Taser’s stock can be seen here.

UPDATE (Sat 7/21, 12:00pm PST): Taser makes almost all of its money by selling a product called the Taser X26 and then cartridges that I assume have to be replaced when they run out. 

They also have a Taser Cam which is attached to the bottom of the taser and records audio and video – which I imagine is very useful in courts of law.

And now, of course, there is the new Taser C2 Personal Protector which began shipping on Thursday (7/19).  This is an exciting new product and I bet it will catch on with consumers.  The device uses propelled wires and has a 15 ft. range.  It is legal to carry without a permit in 43 states, including California.  It retails for $350 which includes an initial cartridge. 

I wonder if we’ll start hearing about civilians shocking each other with Tasers.  I might get one – so watch out!

UPDATE (Tue 7/24, 12:00pm EST): Taser played out pretty much as I expected.

They reported a truly excellent quarter before the open on Monday.  The stock opened up almost $2 around $19.  Then people who had been holding this stock for its phenomenal 3 month run started to take profits.  The stock trended down the whole day, closing in negative territory for the day below $17.

The stock then opened down again today as people who didn’t sell yesterday but wanted to sold at the open.  It touched $15 in the first half hour – down more than 20% from it’s high Monday morning – which is where buyers stepped in and it found support.  (Taser 5 Day Chart)

I think the selling is done for now.  In fact, it might be even be time to buy some as the quarter was truly sterling and Taser’s business is on an upswing.

UPDATE (Tue 7/31, 1:15pm PST): Taser is showing excellent strength this week – up 6% compared to a flat S&P 500 (chart).  I think it’s now consolidated and will resume its upward trend.