Ferguson protests increase TASER International, Inc. (NASDAQ:TASR)’s stock

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By Mark Michaels on August 19, 2014 Company

Recently, the shares of TASER International, Inc. (NASDAQ:TASR) witnessed a rise of 25 percent, mainly due to the protests being held in Ferguson, Missouri over the police shooting of Michael Brown.

TASER International, Inc. (NASDAQ:TASR) is a renowned company for manufacturing electronic control devices which includes video cameras normally used by law enforcement. Thus, due to the current uprising, investors are speculating that the sales of video cameras will hit a new target because of the allegations of heavy handed tactics of the police.

The idea behind this expected boom in sales is that if any police officer engages in violence, it could be recorded if the film is rolling. Moreover, these videos could be used to strengthen the credibility of the police during a patrol. Thus, in order to have proof against any allegation, police departments have increased the demand for these video cameras.

Throughout the country, the idea of giving body cameras to police officers has gained popularity. Los Angeles, San Francisco and Detroit have already initiated this program and it is expected that New York will soon follow this lead, as a part of their “stop and frisk” policing plan.

It is reported that besides bigger police departments, the smaller ones are also experimenting with the video cameras of TASER International, Inc. (NASDAQ:TASR). Rialto, California, is one of the examples with a population of only 100,000 and a police force of 115. Moreover, at present there are only two companies involved in the making of such cameras and hence, any increase in demand will immediately increase the sales of TASER International, Inc. (NASDAQ:TASR).

The services of TASER International, Inc. (NASDAQ:TASR) have also been highly appreciated. The company’s services include software to ease the process of uploading the videos recorded. Since these videos can be used later to form reports, they make a permanent source of evidence. TASER International, Inc. (NASDAQ:TASR) also manufactures taser guns which are another popular equipment used by the police. Moreover, amidst the current crisis, police departments plan to increase the stock of such devices.

According to analysts, the major reason behind such high sales of the company’s products is its partnership with Amazon (NASDAQ:AMZN), which is the only company offering cloud solutions. Thus, even after the uprising in Ferguson ends, the company will remain in competition.

Companies like Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) will also start offering cloud solutions soon, which will allow more companies to create camera hardware and link up with these cloud service providers. Google Glass device is one of the examples. However, police departments are reluctant to implement these new technologies. This factor will also affect the stock of TASER International, Inc. (NASDAQ:TASR) as the company replaces its guns every 5 five years. Police departments, on the other hand, keep their weapons for approximately 20 years. Moreover, police unions also oppose the idea of their every action being recorded. Thus, the company needs to keep in mind all these potential threats and concerns.

Shares of TASER International, Inc. (NASDAQ:TASR) kicked off Tuesday’s session at a value of $15.43; the stock’s range over 52 weeks has been between 10.00 and 20.83 whereas its institutional ownership is 68%.