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Taser, Digital Ally Soar On New DOJ Body Cam Program

BY ALISSA WILLIAMS, INVESTOR'S BUSINESS DAILY


Shares of Taser International (NASDAQ:TASR) and Digital Ally (NASDAQ:DGLY) shot up on Friday after the Department of Justice announced a $20 million pilot program for the funding of body-worn cameras for police officers.

The DOJ funding comes as six Baltimore police officers have been charged in the death of Freddie Gray, who suffered a fatal spinal injury while in police custody. His death sparked protests, riots and looting in the city.

But the funding also follows several other high profile cases of deaths of unarmed black men at the hands of police, sometimes on camera, sometimes n

Some 50 grants, which require a 50/50 in-kind or cash match, are expected to be awarded to local law enforcement agencies, DOJ said.

The pilot program is part of President Obama's proposal to invest $75 million over three years to purchase 50,000 body-worn cameras for police departments.

"Body-worn cameras hold tremendous promise for enhancing transparency, promoting accountability, and advancing public safety for law enforcement officers and the communities they serve," Attorney General Loretta Lynch said.

Taser jumped 7.2% to 32.37 on the stock market today, nearly eclipsing its record high set in December 2004. The stock is now about 14% extended past a 28.40 buy point from a price consolidation.

On Thursday, Taser easily beat first-quarter earnings and sales forecasts. Known for its stun guns, Taser's saw Axon body camera and accompanying Evidence.com data storage and processing systems revenue soar 288%. Overall earnings rose 117% vs. a year earlier.

Taser stock jumped 7.6% on Thursday.

Digital Ally stock increased 8.6% to 15.19 on Friday. Shares are trading about 55% off of their Sept. 2 high of 33.59, which was reached in the wake of the Aug. 9 shooting of Michael Brown in Ferguson, Mo.

Although GoPro's (NASDAQ:GPRO) action cameras aren't marketed specifically for law enforcement purposes, police officers are using GoPro cameras in the field. Shares dipped 0.2% Friday. But the stock rose nearly 12% for the week after reporting stronger-than-expected earnings and sales growth.

Ambarella (NASDAQ:AMBA), a video chipmaker for GoPro but also many other devices, rose 4% on Friday to 76.05.


Read More At Investor's Business Daily: http://news.investors.com/business/050115-750599-taser-digital-ally-gopro-body-cameras-doj.htm#ixzz3YvJYX6uK
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