TASER Stock Surging on Wall Street

Demand rising for body-worn police cameras.
4:19 | 11/25/14

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Transcript for TASER Stock Surging on Wall Street
I'm sad Hernandez in New York the financial markets close on Wall Street for Tuesday November 20 if this is our stories. K there you probably heard of this company that makes devices but. Taser and been of rising sharply lately the company is also a top supplier of body worn video cameras and in the wake of that Ferguson police department. In the wake of Ferguson police departments across the country are looking at taser cameras and a new light. To explain why am joined by Paula Monica at CNN money hi Paul how I do on high Qaeda attack. Well since August following the Michael Brown shooting Kaczur is up nearly 70%. Sounds big to me how because it's for taste. It could be very big this is a company that as you pointed out his most well known for the stun guns. But they also make the acts on video camera that more police departments are starting to purchase. It does seem that in this era we're you have disputed shootings. What better way to end the disputes than to have video evidence. From the police officer I think it would make things a lot clearer. When you're trying to do you know ascertain what happened in some of these controversial shootings. That pacers up a lot but there's another company a smaller called digital ally which is up even more it had a really dramatic run was up about 12% yesterday. Once you know news came out that the grand jury was going to be deciding pretty soon that stock fell today while tase or roads but. Digital ally's another one to watch if more police departments decide to purchase these wearable campus. It's interesting and seems a lot of people are jumping at the thought that this could take place right now the only 15% of police department used body worn cameras. Teaser CEO Rick Smith says hey it soon going to be a 100% obviously a lot of investors. May be thinking that way but is this reason to vote. I don't think it is reasonable you do have to consider that. Obviously any purchase of technology like this is going to be expensive and many police departments are under I've you know pretty strict budget so. They're I don't think it's safe to say that all police departments are going to rush. To make these purchases and there's also the possibility of unintended consequences I mention in my story that there's one person in Washington State. That because of the way public disclosure laws are set up there. This person has been asking for almost every single instance a video evidence from. Cameras CO on cops there and this person is putting them up on YouTube so you have police departments in Washington being overwhelmed by requests. That might be something that is going to have other police departments think twice about whether or not they want a potentially deal with that if they're also in a state where an average citizen can make those require. And when you when you talk about the costs involve obviously storage is an issue how you get it out to the public is an issue and other companies we may see served jumping in this market as well. So ultimately I mean I'm guessing you're gonna say it's foolish to buy a stock based on one event. But clearly the tide may be turning here mean this isn't just one story this is a very big story. Yet definitely and I do think that the big risk particularly when it comes to digital ally which is a smaller company. No major Wall Street analysts follow it it's losing money no significant. Hedge funds or mutual funds owning. Buying that stock based on whatever the headline of the day at a Ferguson is that. Very risky taser at least is a bigger company worth more than a billion dollars its profitable it has and other business line with the stun guns and it's unknown. Commodity known quantity with many police departments. That's a company that you can probably feel a little bit safer. Buying because it is more stable but that being said any stock that's run up as dramatically as that would ask you obviously have to be. Very wary and do your homework you should never be buying stocks just on headlines we've seen that with the all the stocks. You know a couple of weeks ago Hazmat company's surging just because there's this perception that there might be more demand for harassment suits and you know let's just a dangerous game applied. All right Paula Monica from CNN money thanks so much for John thank you. Even watching stories stock they would abcnews.com related headlines anti Hernandez in New York.

This transcript has been automatically generated and may not be 100% accurate.

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