1.) TASR in no way has a "lock" on the market in stun-guns. Competition can emerge with new technologies totally bypassing TASR.
2.) Taser's range of 15-21 feet has a deterrant value but is a joke when it comes to real action situations. Forget about crime fighting, one of the most common uses for the Taser nationwide has been to prevent suicides, a little known fact!
3.) Product cost/selling price can go down dramatically even as volumes pick up if the end-consumer makes a price based decision. Remember, states and local counties are not awash in money - - - many of them are starving for funds even for essential budget items.
4.) Product Liability issues can crop up. The 40 deaths thus far may be "ok" by the company and the coroner, but may not be "ok" by safety regulators. Remember, NJ and MA banned Taser guns, and more states may follow.
5.) High awareness and low penetration rates in scalable volumes proves that Taser is only a "test" product and is one of the several technologies out there that are in the marketplace. Remember, the recent San Jose Police Department order was less that $800,000 dollars (for the 11th largest metropolitan area in the United States, and 3rd largest in California) despite all of the hype surrounding this order. Already thousands of police departments use the Taser nationwide, but in a very limited fashion.
6.) What about Management?
A bunch of promotional types rather than hard-headed realists. Read their press release on being invited to be listed on the Nasdaq National Market and press teh opening buzzer. It was "amatuer" hour, and reflects a shop mentality.
7.) At 93 times 2004 earnings for a company that is a "one-trick pony" that has limited application, TASR is priced for PERFECTION.