For Whom the Bell Tolls: Taser Shocks Itself
The SEC inquiry into stun-gun maker Taser International is now a formal investigation with an "expanded scope."Yikes.
The SEC is looking into claims Taser has made about safety studies for its non-lethal guns as well a $1.5 million sale of stun guns to a firearms distributor, which TASR allegedly made solely to ramp up revenues on its income statement before a fiscal deadline.
If you own Taser stock, we feel sorry for you.
Taser began marketing police stun guns in 1998 and then went into major bull run mode after signing contracts with law enforcement agencies across the country.
Taser's comeuppance arrived when the stun guns were used too liberally by police and scores of deaths were reported.
Taser's stock range is less a lesson in finance and more one in sociology, specifically what happens when end users abuse power and companies rollout defective products.
To think that only a year ago, Taser's CEO was being hailed as the next messiah almost daily on CNBC.
We wouldn't be surprised if Taser falls to zero.
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