Tomahawk, WI 09/12/2014 (Basicsmedia) – The unfolding events at Missouri that led to the shooting of teenager Michael Brown has created a window of opportunity for the usage of video cameras to capture events when one is being arrested or during a routine traffic stop. CNBC’s Jim Cramer sees an opportunity for TASER International, Inc. (NASDAQ:TASR)‘s stock to spike in the market, as a result of an increase in demand for its wearable video cameras.
Wearable video cameras according to Cramer are expected to be a standard procedure with law enforcement departmentsin the long run as one of the ways of putting police officers under check. TASER International, Inc. (NASDAQ:TASR) is currently the number one maker of law enforcement’s non-lethal weapons and remains well positioned to benefit from an upsurge in demand for wearable cameras.
“What I like the most about TASER’s non-lethal weapons division, is that it generates a ton of cash that the company then invests in new technologies like the rapidly growing wearable video camera business,” said Mr. Cramer
Wearable cameras according to Cramer remain viable solutions that municipalities will embrace because they are cheap instead of having to rely on witnesses during complaints and lawsuits. Cambridge University carried out a study in the city of Rialto allowing police officers to use wearables video cameras made by Axion. The study found out that citizens’ complaints reduced by 88% with police officers brutality or use of force going down by 60%; this clearly highlights that wearables could be part and parcel off police officers attire in the near future.
“Taser has a huge edge from everybody else in this business because they have very strong relationships with 17,000 out of the 18,000 law enforcement agencies in the U.S thanks to the traditional nonlethal weapon business. That means they have the connections to sell wearable video cameras to every police department wants them,” said Mr. Cramer.
Increased demand from Brazil is also expected to bolster TASER International, Inc. (NASDAQ:TASR)’s inventory going forward, which is expected to be good for business in terms of revenue. Cramer also believes that TASER’S new product ‘evidence.com’ could also turn out to be another major business line, down the road. Evidence.com has been developed to allow police officers manage their video recordings efficiently to prevent them from being corrupted or getting lost.
Cramer expects TASER International, Inc. (NASDAQ:TASR) to own the wearable video cameras business considering it is the number one player especially with law enforcement agencies, a move that should have a positive impact on the stock upside in the long term.
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