Taser Stock Plunges After Feds Announce Probe


Taser International’s stock has gone from “sizzling to singed” in less than two weeks, reports the Arizona Republic. The Arizona-based stun-gun maker, a Wall Street high-flier the past two years as sales to police increased sixfold and the company attracted international buzz, has lost more than half of its value already this year. Its shares have fallen to $14.10 yesterday from $31.65 on Dec. 31, a decline of 55.5 percent; total market value has gone from nearly $1.9 billion to $836 million.

The decline began in earnest Friday, after Taser said federal securities regulators were looking into its safety claims and a big end-of-year sale. Then came extensive media coverage and shareholder lawsuits. Yesterday, the company told shareholders that sales could slow as police departments review Taser’s new competitors in the stun-gun market. Taser was the third-biggest loser on the Nasdaq Stock Market yesterday, falling 30 percent. Joe Blankenship, of Source Capital Group, believes the stock sell-off has been overdone, given Taser’s earnings record, an expected strong financial report due Feb. 8 and the infancy of its competitors. Still, he tells clients he doesn’t expect the shares to come back strong any time soon.

Link: http://www.azcentral.com/news/articles/0112taser12.html

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