Taser stock rises on new London contract

Could a pilot program with the London Police Department move the needle for the company?

By Motley Fool Investor Beat Apr 15, 2014 4:01PM
Taser International (TASR) stock was up nearly 3 percent Tuesday after the company announced a deal with the London Police Department to roll out a trial number of its AXON wearable cameras to officers throughout the London area.

Some 500 officers would each be equipped with a camera, which would upload a constant feed to cloud storage, ideally in the hope that it could reduce complaints, increase accountability, and reduce legal costs for the department.
While 500 cameras isn't an enormous amount of revenue for Taser, this is only a pilot program. London's police department is huge, with around 31,000 officers, so if this delivers the kind of results the department is looking for, this could represent a massive opportunity for Taser in the future.The Mesa Police Department showcase the Camera System Axon Flex Officer device on September 25, 2012 (© Eduardo Barraza/Demotix/Corbis)

In this video from Tuesday's Stock of the Day however, Motley Fool analyst Blake Bos says he's still a bit wary of Taser's valuation. At about fifty times earnings and six times sales, he still sees this as a very expensive stock, and would prefer to know the company and its prospects just a bit better before paying that high price.

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