Taser International Inc.

Posted on November 28, 2005 , filed under Stocks | Print This Post

I posted on Novemeber 25th, 2005 that I expect TASRE, Taser International Inc. to lose up to 30% of its $7.40 closing price. If TASRE does lose 30% of its November 25th closing price, that puts the stock at $5.18. I expect that TASRE might lose more than that on speculation behind the company’s corporate compliance and reporting policies. TASRE has been badly hurt by over 30 pending lawsuits, 5 of which have been dismissed. I don’t see smaller companies as potential competitors yet. I believe most law enforcement and potential customers of stun guns are waiting to see how Taser’s lawsuits work out. If the lawsuits do work out in Taser’s favor, I see customers turning to Taser for their stun gun needs. If this situation pans out, I expect Taser to hold a monopoly over all the major potential customers of stun guns. I don’t believe stun guns are a category of products that compete like normal products on price and performance. I believe the major determining factor, for volume purchasers of stun guns, is liability and dependability. If Taser’s lawsuits are dismissed, the company will receive a vote of confidence in both liability and dependability for their stun guns. A dismissal of the remaining lawsuits would be a competitive advantage none of the smaller would be competitors to Taser would have.

I see TASRE potentially dropping to mid $4’s driven by speculative greedy short sellers. The speculation and greed behind TASRE is fueling major price movement in the stock. If TASRE drops below $4 I will purchase 3000 shares of the company.

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