Whether you've been following the news closely or just
overheard your coworkers talking about it, chances are you know
about the controversy taking place in Ferguson, Missouri.
In the wake of these events, protests and civil unrest have
broken out across the city -- leaving many around the country
speculating as to what actually transpired on August 9.
And it's those speculations that could lead to a major boom
for one market in the coming months.
The truth is: we may never know what happened that day. There
was no video evidence and very few witnesses.
But over the past few weeks, a growing number of police
departments across the country are placing orders for
that officers can wear to document their interactions with the
The cameras will be able to record nearly everything an
officer sees. Several petitions are gaining traction that will
mandate police nationwide
to begin wearing them.
Aside from the Ferguson controversy, there's been recent
public outcry for change in New York and Los Angeles after
incidents of alleged police brutality were caught on camera by
A 2012 study
conducted by the police department in Rialto, California -- where
officers wore body cameras on patrol for a year -- found that
"incidents where officers used their pepper spray, Taser, baton,
firearm or a police dog dropped in half..." compared to the year
And complaints against the officers during that year dropped
by nearly 90%.
With stats like those -- along with the controversy in
Ferguson, Missouri -- it is only a matter of time before more
police departments around the country require all officers to
wear body cameras.
And if the products prove useful, demand could skyrocket.
Just think back to 2005, when Automatic License Plate
Recognition (ALPR) technology was first used to solve a murder --
the technology was quickly adopted by police departments and
security companies around the world.
Global innovator 3M has since sold over 20,000 ALPR cameras.
3M stated that the technology "has grown drastically, seeing
rapid and widespread adoption worldwide."
And a similar development could happen soon with body
But where can investors look to profit from the coming boom?
I've found two options...
Digital Ally Inc. (Nasdaq:
is a police video camera company that's been publicly traded
Customer inquiries for its FirstVU HD officer-worn video
systems have "increased dramatically" in the wake of recent
events -- causing its share price to skyrocket over
in the last 5 days, according to the company.
In 2013, 94% of Digital Ally's business came from sales to law
enforcement, but body-worn cameras made up just 3% of the
company's annual revenue. In other words, the company has plenty
of room to grow in that department.
The small company -- with a market cap of just $35.7 million
-- trades for just $12.50 per share, up from just $4 per share on
But the recent spike could be just the beginning if police
departments around the country mandate that all officers wear
body cameras. After all, there are currently more than 900,000
law enforcement officers in the United States, the highest number
And Digital Ally sells body camera bundles for over $5,000 a
piece -- meaning its potential earnings from body cameras could
reach over $4.5 billion.
But despite the company's recent stock surge, it still has
plenty of promise and reason to keep soaring.
But Digital Ally isn't your only option...
Taser International Inc. (NasdaqGS:
currently trades at $15.95 per share -- up over 36% in the last
It recently sold 100 of its Axon body cameras to the Fresno
Police Department after the recent turmoil.
Body camera sales in the past quarter increased by more than
five times year over year, as you can see in the chart below.
And Taser is a shareholder-friendly company as well...
While it doesn't yet pay a dividend, over the past three years
the company has bought more than $58 million worth of its own
stock, boosting the valuation of its shares.
Not only that, the company has over $50 million worth of cash
and short-term investments and carries almost no debt --proof
that the company has been successful managing its finances. It's
hard to go wrong with a fiscally responsible company that
generously rewards its shareholders and could see a major boom in
the demand for its products.
And while Digital Ally has already exhausted some of its gain
potential, TASER is still waiting for a stock price surge.
Risk to Consider:
Competition from privately held companies could hinder
potential sales from Digital Ally and
Taser. Body cameras also have limited demand and prices could
level out after a major spike in the coming months.
Action to Take -->
Both Taser and Digital Ally offer investors the potential for big
gains as the popularity and use of body cameras grows across the
country. But with a larger market cap, low debt levels and
generous share buybacks, Taser International appears to be the
more reliable option. The company could offer investors a
generous gain in the near future as demand for body cameras
increases. And whether it's for police to help counteracts
complaints of excessive force or for citizens who request video
evidence after controversial encounters with law enforcement,
these cameras have the potential to benefit all parties -- making
them a true game-changing technology.
If a game-changing technology like body cameras has you excited,
you should see what my colleague Andy Obermueller is on to. He's
created a new report -- 11 Shocking Predictions for 2015. In the
past his predictions have given investors 92%... 293%... even
310% gains in a year -- but he's found evidence that a tech
giant's next breakthrough could threaten the entire banking
industry. Get all of the details -- along with Andy's 10 other
by clicking here