Where is the bottom?

Where is the bottom in this market? Of course company earnings will suffer with a credit crunch and lower consumer spending. Lower earnings means a drive to cut costs, which will mean layoffs. The threat of layoffs will mean consumers spending less. Consumers spending less means lowers corporate earnings… See a cycle here?

Now, the million (or trillion) dollar question…what will break the cycle?

Adding to my position in Taser, what are your thoughts?

Yesterday I bought some more Taser.  Maybe I’m digging myself into a hole, but I think this company’s technology could be a major part of the future of law enforcement and military weaponry and I can’t believe they are trading for as little as they are.

  • They have a strong brand (Does “Don’t tase me bro!” ring a bell?)
  • They consistently get new orders from law enforcement agencies all over the US
  • Historically, the vast majority of their revenue has been from domestic sales, but international sales are starting to ramp up
  • They have no significant competition

This missed earnings back in mid-April which, understandably, will shake investors a bit but the stock price has fallen nearly 50% since then.  They were found partially liable for a death in Canada recently where a man died after being tased but, the question is, as the company starts to document the risks of the devices more accurately and law enforcement learns the proper situations in which to use them, will the lawsuits cause irreparable harm to Taser?  I think not.

Police use GUNS today.  Guns kill people.  Gun manufacturers, unless negligent in some way, aren’t liable in every murder case for providing a deadly weapon.  Tasers aren’t a toy, they shouldn’t be used lightly but, from the reports I’ve read, police have nothing but good to say about the Tasers.  If given a choice between shooting someone (which may very likely kill them or cause permanent injury) and Tasing someone (which, generally, causes no lasting impact), I see a huge potential for law enforcement to use Taser’s as a replacement for many of the cases in which guns would normally be used.

I really believe in the potential for this technology and company.  If you see a different perspective, please, leave me a comment!