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  "documentTitle": "Axon Enterprise (formerly TASER) (AAXN)",
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  "presentationDate": "2019-06-19 00:00:00",
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      "text": "Axon Enterprises (Nasdaq: AAXN), the maker of the Taser stun gun, has been positioning itself more as SaaS provider of analytics through body cams to law enforcement agencies.",
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      "text": "Recent Financial Results Signal Growing Strain: Taser’s core stun gun product is mature with limited domestic unit growth opportunities. Meanwhile, its faster growing Software and Sensors is experiencing a slowdown. Now 5 years into the Taser 60 program, its early mover advantage is being eroded.",
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      "text": "Undisclosed Dependence on Chinese Imports Will Drag On Gross Margins, And Increase The Likelihood Of Earnings Misses: We believe Axon has concealed its dependence on Chinese imports. Based on import records, we believe Axon has been increasingly dependent on China imports tied to the body cam business, which could easily cause it to miss 2019E EBITDA by 10%.",
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      "text": "Senseless Equity Capital Raises And Need For Borrowing Increase A Classic Red Flag Pointing To Future Financial Challenges: Axon’s Q1 operating cash burn was the worst in its public history. Axon quietly increased its line of credit from $10m to $100m, an odd move given it has $350m of cash. Axon raised $234m of equity in June 2018 for no defined purpose.",
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      "text": "downside risk: 40% - 60%",
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      "text": "Axon Enterprises (Nasdaq: AAXN), the maker of the Taser stun gun, has been positioning itself more as SaaS provider of analytics through body cams to law enforcement agencies. With a history of SEC inquires, delinquent filings, and material weaknesses, we believe Axon will shock investors with significant earnings disappointment and increasing cash burn as it fails to scale beyond these niche businesses. Furthermore, we believe investors misunderstand Axon’s exposure to China tariffs, which will constrain margin growth, and its aggressive revenue recognition policies, which have pulled forward revenues. As part of our research, we spoke with a law enforcement expert at one of the 5 largest police departments in the US, a former Axon product executive, and a leading global competitor. With its shares and valuation trading near an all-time high, and analysts price targets of $72 (implying 9% upside), we think the risk/reward is terrible and believe investors should brace for 40% – 60% downside risk ($27.50 - $40.00).",
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      "text": "Spruce Point Believes Axon Enterprises (Formerly Taser) Is A “Strong Sell”: 40% - 60% Downside Risk",
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