Yikes! Funding source is to sell shares, 150 million shares outstanding, fired their accounting firm last month, has overpaid officers, and is HQ'd in Boca Raton, FL. Red flags anyone? How much did they pay Cramer to have their CEO be on his show? Cramer should be embarrassed to have even acknowledged this company.
They haven't been delivered yet. The LAPD bought 7,000 cameras a few months ago (before Charlotte did) and the first batch is going to be delivered to them this quarter. TASR doesn't have these on the shelf to package and mail the next day.
That's what PDs are using the videos for: to demonstrate best practices to improve their officers. TASR's February seminar in Sacramento highlighted this use for their body cameras.
This is on the front page of today's New York Time (pictures included and above the crease). The video was by someone else, not a body camera on a police officer. The article states that "a White House policing panel recommended that police departments put more video cameras on their officers." TASR can't buy this kind of advertising.
This is the kind of stock that makes investors cringe, making them wonder if the the stock market is too high. TXMD's funding source is issuing more stock; shares outstanding are nearly 150 million. The compensation of TXMD's management seems excessive given the size of the company. It fired it's former accounting firm in March. The company is registered in Nevada and headquartered in Boca Raton, FL (that's a real red flag). How did this company's CEO manage to be interviewed by Jim Cramer on "Mad Money"? If someone had called Cramer during his Lightning Round segment about this company, Cramer would have pressed his "Sell" button in an instant.
Go to the SEC's EDGAR and read TXMD's 2011 Form 10-K for an historical background. The officers are bleeding this company dry with their compensation. TXMD's funding source is issuing more shares. They won't be profitable for years. They have nearly 150 million shares outstanding. This is a penny stock that is somehow over $6 a share. Lastly, TXMD's headquarters is in Boca Raton, FL. How much management paid Cramer to be on his show is anyone's guess. If someone had called into Cramer about this company during his Lightning Round, he would press the "Sell" button immediately. You have been warned.
TASR's mo is getting going. The Hummelstown, PA incident, the increase in accounts receivable at year-end, the SDPD data, and future events will become a body of support to justify the use of body cameras. Because of Hummelstown, a Penn. DA became aware of taser cameras. Police interaction with civilians is a hot topic and high profile now. We'll hear/read/see about them all over the nation as extreme cases occur and reporters want to have column inches in newspapers. Each will increase body camera awareness. That a DA didn't know about taser cameras means there is still more awareness needed. But it will come. States are gearing up evaluating body cameras. An Oakland assistant chief says body cameras may be expensive but, over the long term, from a liability and management perspective, they are worth it. Say "liability" and "lawsuit" to government people and they jump, if not cringe. How much do you think the lawsuit by the dead person's family in Hummelstown, PA is going to be? It seems fair to say it will pay for a lot of body cameras. Just that one incident. And the SDPD data implies San Diego will be saving bucks in reduced complaint investigations. Once the government determines their usefulness, there's no turning back and funding won't be a problem for PDs to get body cameras. The wheels of government grind slow but they grind fine. Patience.
The only reason they "missed" the estimate is due to accounting adjustments in the fourth quarter that no one outside the firm could predict. Ex those adjustments out and they beat the median estimate by two cents. They cleaned up their balance sheet by eliminating obsolete equipment. Companies do this all the time in their fiscal fourth quarter. TASR is doing the right thing.
Paul Figueroa, an assistant chief with the Oakland Police Department. “But over the long term, just from a liability and management perspective, it’s definitely an investment that’s worth it.”
What happened in Hummelstown, PA in February, and disclosed on 3/25, will sell TASR products. Rick doesn't need to be around with an incident like that to convince people that cameras are necessary. Now, more DAs across the land will be aware of cameras on tasers, bodies, caps and lapels. Another group of law enforcement (DAs) will support this "new" equipment.
Witness this date a female police officer in Hummelstown, PA shooting a motorist twice in the back while the latter was lying face down on the ground over an expired inspection sticker.
In two to three years, TASR may be making a dollar in EPS. Throw whatever multiple you want on that to get a price. As for the S&P 500, it changes all the time. Jim Cramer discussed the S&P 500 recently. It evolves, improving itself by replacing laggards with growing companies. Companies in the Index that are acquired are purchased at a premium to market, so the Index rises from that activity. Take some of that inheritance and place it in Vanguard's 500 Index. It has a very low expense ratio (0.17%) and performs better than most mutual funds. The S&P 500 Index outperformed six of seven mutual funds in 2014 and has outperformed the average mutual fund for six consecutive years. If you buy individual stocks, buy those that are paying a dividend. One company has been increasing its dividend annually for about 58 consecutive years (yes, even through the Great Recession); many others have been doing so for 20 straight years. Dividends represent about 40% of total return. Good luck.
The growth impact of individual MTWA sales is gone, now diluted by, and buried in, the nearly billion-dollar revenue of OSIS (i.e., MTWA is not a pure play anymore). But it is good that the technology is in the hands of competent management with sufficient financial resources to distribute MTWA to save lives. That OSIS management incorporated MTWA in their existing system so quickly (just months after buying it) is impressive. Strangely, there are no messages on OSIS's message board. They have less than 20 million shares outstanding and a good majority of them are owned by institutional accounts.
A police officer was fired for not turning on his camera when interacting with a civilian. That's not a misdemeanor, but the camera certainly levels the playing field. If police don't like the camera there is something wrong with their attitude. The camera can protect them too. Data released recently by the San Diego PD confirms results from a Rialto, CA PD study (cameras reduce civilian complaints, saving money). Here's a technology used by government agencies that actually saves taxpayers' money. City managers, comptrollers, treasurers, financial officers (whatever you want to call them) should get on this bandwagon to reduce city budgets.
We don't need to get the stock fired up. We need results from management to raise the stock price. This is a 2016 stock. The AXON segment lost $18.6M in 2014, so management has a ways to go for that segment to become profitable. But 74% of total R&D was in the AXON segment (a 97% increase in AXON R&D YOY). It will be hard for others to keep up with them the way they are spending money on AXON.