Several analysts, pundits, and politicians have predicted that as the weather gets warmer, the Occupy Wherever movement will rise up again and take to the streets to protest “income inequality.”
But unlike when Occupy first began back in September of 2011, police in major metropolitan areas have a better idea of what to expect and they've been preparing.
And by “preparing,” some analysts mean “stockpiling.”
“[L]aw enforcement authorities across the country are no doubt stocking up on tasers and mace in time for the spring and summer Occupy protest seasons,” SmallCap Network’s John Udovich writes.
And like anything the market, if a product is in high demand, its manufacturer will see a nice bump in stock prices. That being said, do the manufactures of mace and tasers stand to make a boatload of money from Occupy's rebirth?
Furthermore, “are TASER International (TASR), Mace Security International (MACE) and View Systems (VSYM) safe investments for those of us in the or who want to be in the 1 [percent] or should we give these stocks a pass?” Udovich asks.
To answer these questions, Udovich presents an in-depth look at the financials for these companies (all block quotes via SmallCap Network):
TASER International (NASDAQ: TASR):
Stock quote starting Sep. 2011 - current
TASER International manufactures Electronic Control Devices (ECDs) that are used worldwide by law enforcement, military, correctional, professional security, and personal protection markets.
Investors should note that near the end of March, TASER International had a $10 million judgment against it reduced to $4.4 million in the death of a 17-year-old who died after being shot by police in Charlotte (NC) with a TASER stun gun.
TASER International also had another $7 million judgment against it drop to $200,000 for a similar case in California that may be retried if the plaintiffs don’t accept the lower judgment.
Otherwise and lawsuit threats aside, TASER International reported that 4Q2011 sales fell 7 percent year-over-year to $21.3 million but product sales remained strong and the company received new orders worth $1.6 million that will be recognized in the first quarter.
Nevertheless, TASER International took a one-time $5.7 million charge over excess inventory and posted a $6.2 million loss. In addition, sales for the full year rose $3.1 million to $90.0 million while the full year net loss came in at $7.3 million.
Mace Security International (PINK: MACE):
Mace Security International is a manufacturer of pepper sprays plus animal repellants, surveillance cameras, security DVRs and CCTV.
Investors should be aware that Mace Security International reported that total 2011 revenues fell from $18.4 million for 2010 to $13.9 million due to a $3.5 million sales reduction in high-end digital and machine vision camera sales while the year’s net loss fell from $18.1 million to $5.1 million.
However and while Mace Security International ended the year with $7.9 million of cash and cash equivalents, it also generated $517,000, $1.17 million and $1.57 million in cash through three different asset sales – something that should concern investors…
View Systems (OTC: VSYM):
View Systems manufactures and installs weapons detection identification systems, video management platforms and communication networks targeted towards correctional facilities, schools, courthouses, government agencies, event and sports venues, and commercial businesses.
For 2011, View Systems reported revenues of $385k (most recent reporting quarter), $74k and $117k; net losses of $17k (most recent reporting quarter), $245k and $106k; and had no cash and $374k in receivables to cover $1,491k in accounts payable, $1,793k in current liabilities and $1,823k in total liabilities.
Okay, so there are the financials. What does it all mean? What's the bottom line?
“Investors should be concerned about the potential number of wrongful death lawsuits that TASER International...as well as Mace Security International...could face along with the financials of the later plus View Systems," Udovich writes.
Translation: if you decide to invest in any of the aforementioned companies, keep in mind the call for real "action" Occupy leaders have made for the spring and summer "offensives." If Occupiers respond accordingly, things get out of hand, and the police respond with force, the companies mentioned in the above could be looking at several lawsuits arising from injuries or (God forbid) deaths caused by their products.
Invest with caution.