Stinger Systems (STIY): opinions?

[CabrioM3]

Another interesting developement occurs as TASR warns they may have delayed orders as customers test options from competition (possibly LENF and STIY). Of these three I feel that Stinger appears to be the best choice, if I were going to have to use one. The design is slick, the laser sight is built-in, and they claim they will launch with video-cam option that LENF does not have, and TASR claims they will have some time in late 2005 or 2006. Four darts would seem to be a large advantage in this group, as opposed to the two fired by LENF and TASR guns. If anyone has seen the TASR gun, the grip is tiny, and the LENF, well that thing is fairly large, and to me would be hard to holster and draw. It could use a re-design, although I am sure it would be easy to re-do the case (plastic). Both LENF and STIY have other products, and have some established clients that may quickly purchase their guns, especially STIY, whose other products are stun-related already.

So, out of this group I would give the definite edge to STIY, pending actually seeing its gun in action. A quick look at their relative market caps:

TASR: 883mill
STIY: 644mill
LENF: 245mill

This is interesting and makes me a little hesitant to go long in STIY as their market cap is approaching TASR's, but keep in mind that TASR has been beaten down lately and only sports a P/E of 53, compared to the 100+ it had only a few weeks ago. STIY has unknown earnings as they just went public in Q4, and LENF is about a break-even company currently.

So the question is, which one to buy? TASR is certainly hard to pass up at its current level of 15. Less than a month ago it was near 35. STIY appears to be approaching what I would consider fair value if it already had some market share, but we have not even seen their prototype yet. Hard to buy at these levels of near 50. LENF has shown their gun to be better performing in all areas than the current TASR model, but it is not as slick looking as potentially as good as the Stinger. Their website is also a bit crappy compared to the others. They could use a new designer for their gun and site, and some better PR people I think. They also have by FAR the lowest market cap. Common sense would dictate a long in LENF at this level, and they are also planning to ditch their .OB status in Q1/05, with their application already pending in the AMEX.

Edit: I forgot to mention that the LENF gun incoporates what they call FMT (Fused Muscle Tetony), which allows the gun to produce the desired effect while using 1/4 the power of the TASR models. Supposedly this makes the thing safe(r), which may help LENF to capture some market share from TASR. TASR has gotten a ton of bad press lately, with various oragnizations trying to link deaths to shocks from a TASR gun. In the past the has always been circumstances such as a heart condition or drugs that have been ultimately blamed, but who knows. End Edit!

Bottom line is I went long again LENF today at 10.75. It took my 18 attempts to buy the damn stock, so it better be worth it!

If STIY was lower I would probably have bought it as well, and if they come out with their prototype video I will jump in at least for a short-term long.

Although it is hard to pass up TASR at its current level, I think it is going to be a while before they post some news to get their stock moving again. Hell, if orders actually DO get delayed, they may actually move a bunch lower...

-Dave

Dave,
I thought that Stinger and Lenf had the same technology, didn't they get their technology from the same individual? Both... safer than taser?
Seems like Stiy may have the edge here as it has fewer shares outstanding (which is why its cap is not real big even though its close to 50 bucks)and a new 4 dart gun shipping as we speak?

I do own both though, 2100 stiy 15 to 18 pps and Lenf 3500 @ 6.8 to 12 pps, so I think both will be great ...lenf has an established product line.

Cant wait to hear what the cops think about these products!

Just some additional thoughts...

John

[Dave]

Dave,
I thought that Stinger and Lenf had the same technology, didn't they get their technology from the same individual? Both... safer than taser?
Seems like Stiy may have the edge here as it has fewer shares outstanding (which is why its cap is not real big even though its close to 50 bucks)and a new 4 dart gun shipping as we speak?

I do own both though, 2100 stiy 15 to 18 pps and Lenf 3500 @ 6.8 to 12 pps, so I think both will be great ...lenf has an established product line.

Cant wait to hear what the cops think about these products!

Just some additional thoughts...

John

It certainly appears that they both obtained their tech from James F. McNulty, Jr., former Tasertron exec. In a strange twist, TASR bought the failed Tasertron company, and was also sued by McNulty for patent infringement. The case was tossed, but still interesting. Stiy also has an established line of products, but their financial situation is the unknown. Apparently there was actually a video shown of their prototype on a local ABC affiliate, but I have been unable to find it. One would think that now would be a perfect time to get a video up on their website, with the recent crash of TASR.

Anyway, my long on LENF is not doing well right now, but its doing better than if I had longed STIY at the same time. They are both hurting today, with TASR up a bit.

-Dave

[CabrioM3]

Dave,

Thanks for your insight and research!
Perhaps a good day to buy a dip in stiy. I would not worry about your lenf position as I think the overall market is affecting all stocks.


John

[Dave]

An interesting read on the LENF site, is an interview with James McNulty Sr. In the interview the discuss his employment at LENF, and aspects of their device which are based on his son's research and discoveries. This gets more interesting every day! He claims to have 6 patents, but does not say what they are for. He has been an engineer for 40 years, so they could be in anything, and I would have to doubt they are anything related to stun guns or he (they) would have been more specific. The patents that STIY claims to have bought from McNulty Jr. appear to have nothing to do with their Stinger gun. McNulty Sr. claims that the FMT circuit in the LENF gun is a total in-house developement, and is at least as effective as the TASR design, at a fraction of the power, making it much safer.

All-in-all I would have to say they all these companies seem to be hiding various aspects of where their designs and patents come from, but it would appear that between STIY and LENF, LENF is being a bit more open about things. The plan to post more interviews with McNulty Sr. through the following weeks.

Should be fun!

Dave

[tokyojoeskid]

going to take a stab

bot 100 today its going to be my gamble this year.

[tokyojoeskid]

100 of lenf that is.
Dave its a shame that utsi has been trash lately. I go to Hawaii for two weeks to come back and see that my Utsi takes a big hit and so does my dhb. Im still even on Dhb and sold some for a gain but way down in Utsi. I like the story on Lenf but the only thing that scares me is that the Tasr ride and the stun gun fad might end. We will see though 800 bucks wont kill me, I'm only 22, thanks for all the info and research.
tjk

[MickyMouse]

Castle in the air

These two are classic type of castle in the air play . Good luck.

Micky
________
buy easy vape

[CabrioM3]

100 of lenf that is.
Dave its a shame that utsi has been trash lately. I go to Hawaii for two weeks to come back and see that my Utsi takes a big hit and so does my dhb. Im still even on Dhb and sold some for a gain but way down in Utsi. I like the story on Lenf but the only thing that scares me is that the Tasr ride and the stun gun fad might end. We will see though 800 bucks wont kill me, I'm only 22, thanks for all the info and research.
tjk

First, I see the homeland security industry as an ongoing concern! Second, Tasr has been good because it not only had big demand, but it also satisfied wallstreet with huge profits. Also they were just starting to go global, I think a foriegn airline contracted with them!

Internet content was a FAD industry in the 1990's and look at it now!
ITS HUGE and is making profits, Big profits! Some names have changed and some are gone but those that figured out how to "improve" the mousetrap profitably are stronger then ever!

I think Homeland security is here to stay like the internet, only certain companies will learn from their peers what to do and what not to do!
Taser was the leader and with that comes the hard lessons, the successors will profit from those lessons!

Dave, so you think Stinger has some other products in the works beside stun guns? Stinger also boasted of a safer than Taser stun gun? Whats up with that technology if not the same as leacorps?

John

[Dave]

First, I see the homeland security industry as an ongoing concern! Second, Tasr has been good because it not only had big demand, but it also satisfied wallstreet with huge profits. Also they were just starting to go global, I think a foriegn airline contracted with them!

Internet content was a FAD industry in the 1990's and look at it now!
ITS HUGE and is making profits, Big profits! Some names have changed and some are gone but those that figured out how to "improve" the mousetrap profitably are stronger then ever!

I think Homeland security is here to stay like the internet, only certain companies will learn from their peers what to do and what not to do!
Taser was the leader and with that comes the hard lessons, the successors will profit from those lessons!

Dave, so you think Stinger has some other products in the works beside stun guns? Stinger also boasted of a safer than Taser stun gun? Whats up with that technology if not the same as leacorps?

John

The bottom line is the demand for these devices is growing, internationally as well as domestically, and TASR is going to lose market share to better/cheaper products as they become available. Both LENF and STIY appear to be poised to steal some revenue from TASR. How much is anyone's guess.

Now, STIY does have some other products currently, but I have not heard of anything else "in the works". They offer a non-projectile stun device, a riot shield with stun capability, and a prisoner restraint device with stun capability. How much revenue they get from these is again, anyone's guess. LENF has other products that have made them a viable company, albeit not anything along the lines of TASR. One would think that if they can capture a small percentage of the market, they could do quite well, and I imagine we should see some interesting developments as their industry trade sho approaches. The interviews with McNulty Sr. should be interesting as well. I am still waiting to see that STIY video though...

-Dave

[MEA_1956]

UGHO === Is another co. that is in the Homeland Sec. News here lately. Have not looked into them quit yet but will do so at a later date.

Boy your guess is as good as mine on which one is going to be up today. These co. just seam to all have there day here lately. ===> M.E.A.

[CabrioM3]

UGHO === Is another co. that is in the Homeland Sec. News here lately. Have not looked into them quit yet but will do so at a later date.

Boy your guess is as good as mine on which one is going to be up today. These co. just seam to all have there day here lately. ===> M.E.A.

I took some profits from Stiy shares in my IRA(I bought those at 15 and sold at 31, and have 1700 left in my non ira) but have a hard time selling anymore, and I really do not want to sell any lenf. I have been trying to raise cash since this market has been correcting but boy these two are among my strong stocks (he says while crossing his fingers)

They are down considerably from their peaks, I am wondering if that was their corrections?


John

[Dave]

I took some profits from Stiy shares in my IRA(I bought those at 15 and sold at 31, and have 1700 left in my non ira) but have a hard time selling anymore, and I really do not want to sell any lenf. I have been trying to raise cash since this market has been correcting but boy these two are among my strong stocks (he says while crossing his fingers)

They are down considerably from their peaks, I am wondering if that was their corrections?


John

My guess would be that we will see movements as follows:

STIY will make a very nice move upon their releasing of the video demonstrating their projectile gun. Many people wonder if it even exists, so a public demo would really give them a boost. Also, I like the fact that they just acquired the company that has designed their gun-cam system. Good move! The big question with STIY is their financials. Nobody has a clue, although their first 10Q is due out soon. Should be very interesting, indeed. They seem to be financially stable, as I would think their new CEO would have looked into them in detail before accepting the position.

LENF should tread water with some minor moves possibly based on posted interviews with McNulty Sr., until their trade show, I believe in March. That is when their weapon is supposed to be available for sale, and any contracts would give it a nice boost. I am currently going over their 2004 financials to get a better bead on what to expect from them. There is some interesting stuff in there so far, but I will post more on it later.

-Dave

[Dave]

A little update on patent info as I dig through LENF's SEC filings.

They purchased patents from McNulty JR. relating to Electrical Discharge Weapons (ESD), more specifically "a method and apparatus for increasing the effectiveness of the electrical discharge for such weapons". Also cought were molds that McNulty JR had already developed for an ESD. They also purchased patents from a Yong S. Park that seem to relate to the propulsion mechanism for a remote ESD.

In the same filing they hired McNulty SR and John Scuddy, II to aid in their ESD developement.

Fun!

-Dave

[CabrioM3]

Dave, on another site someone brought up Lenf as featured at a website called Stocklemon.com.


John