I’m new to this board and notice that you guys are really detailed in your analysis! If you haven’t come across this stock, I suggest that you look into it. Here are just a few items:
- They are known for their TASER stun guns.
- Their revenues went up 14% year over year- nothing impressive compared to those SaaS you guys are looking at.
- They are being sued by Digital Ally (DGLY) for patent infringement and have lost all six challenges.
4) They also make police body cameras and are actually going to be an SaaS company, due to their evidence.com. From their website: “…You’re collecting more data than ever — and Evidence.com can help you make the most of it. Our robust, cloud-based system stores all your data — from body-worn cameras to audio records — while streamlining data management and sharing. Feel confident with Evidence.com’s simplified, comprehensive evidence management system.”
5) 48 major cities in North America use their cameras and software. I believe that they are giving this away for free to some cities for five years for them to try out. That’s why it’s not showing up on the bottom line- for now. Once cities get hooked using their software, then the money starts coming in. Police spend a lot of time piecing evidence together. The software gathers all the videos shot from the body cameras and saves a lot of time for the cops.
6) This is purely guesswork: 5) keeps the profits down. If they eventually lose the lawsuit, they can claim that there’s little or no financial damage from the patent infringement.
7) It is believed that DGLY is asking for $550 million in damages. AAXN made a secondary offering a few months ago- for expansion. Many think that it was to pay DGLY.
8) Once law enforcement gets hooked on their evidence.com, you have one of Saul’s favorites ingredients- RECURRING REVENUE.
9) They are the only player in this law enforcement space- That’s a monopoly! DGLY is a shell company whose only existence is to sue AAXN. DGLY basically makes nothing!
10) From Motley FooL;https://finance.yahoo.com/news/why-axon-enterprise-stock-ros…
“Analyst Brian Gesuale lifted his rating from outperform to strong buy but maintained his price target at $79. Gesuale also said the company’s stock could hit $100 a share by 2021, arguing that the power of the company’s growing subscriber base is being underestimated. He also said that the business is still being valued like a hardware company, even though its emerging cloud business could deliver significant profit growth, and noted that software sales made up just 2% of revenue in 2014, compared to 20% in 2018, a sign of the shift in the overall business.”