Tech Investing: Taser's French Connection
By Ian Cooper
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There’s a good chance that Sarkozy’s win the French election will mean business for Taser International Inc. (TASR:NASDAQ).
The company could easily make $360 million if French policemen are equipped with tasers.
Taser’s stock buybacks are a bullish signal.
Tech Investing: Taser’s “French Connection”
Fellow stock guru Ann Sosnowski has been a Taser International Inc. (TASR:NASDAQ) bull for as long as I can remember… for good reason. Here sits a $9 growth stock that just unleashed a smaller taser model for citizens -- it just had multiple liability cases tossed and its weaponry is back in favor following 80 safety studies.
That said it’s not hard to stand by Ann’s $15 near-term price target.
I wouldn’t wait to buy shares. There’s a good chance that Nicolas Sarkozy will win in Sunday’s French election, as polled French voters believe the right-wing candidate outdid Royal in Wednesday’s televised debate. And there’s no doubt that his win would create a win-win situation for French business.
With that in mind, my Early Alert Trader team went searching for companies that’d benefit from his win. One of them is Taser, a stock that could spike on Sarkozy’s alleged desire to put a taser in the hands of 250,000 to 300,000 police officers in France.
Say France picked up 300,000 tasers at $1,200 per taser. That’s an easy $360 million windfall.
Tech Investing: Taser’s “Stunning” Future
The election gives us a speculative angle in which to buy. From a fundamental perspective, the stock is just as attractive. This is a $9 company with no debt, and about $16 million in cash on hand. While it does trade at 25 times expected 2008 earnings, news is that the company could grow at an annual growth rate of 36% near term.
Plus, take into consideration Taser’s $10 million buyback program.
Only $2.2 million of that has been bought. Further buybacks wouldn’t be a big shock. Couple that with international growth opportunities in countries like France and New Zealand, and Ann’s 67% stock price appreciation to $15 isn’t so farfetched.
Tech Investing: Be In the Know…
For those of you “shockingly” unfamiliar with Taser’s stun guns, here’s a quick tutorial.
Taser’s controversial stun gun reportedly delivers some 50,000 volts through two darts attached to 20-25-foot wires. Imagine being hit with that. That’s like getting hit by a truck. Once the person is hit, the high current overstimulates the nervous system, thereby locking up muscles.
This is one of the safest weapons on the market, and with new health studies verifying their safety, you should continue to see businesses, and even countries like France, start buying tasers in bulk.
Current Early Alert Traders were recommended this stock as soon as rumors concerning France’s possible order started swirling around the press.
Learn more about the other stocks that Early Alert Traders are buying today.
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A business journalist for five years, Ian L. Cooper is the creator of Red Zone Profits Group’s Trade on Rumor, News, and Fear systems, Early Alert Trader and Death Cross Trader.
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