In part 1 of our discussion of Taser International stock, we explore how there are two segments. Its conductive electronic weapons (CEWs) enjoy extraordinarily high profitability with mid-30’s operating margins fully burdened, and competition barely exists. The other segment is Axon, which contains its emerging evidence.com cloud-based evidence management system, which reduces paperwork for police officers, helps manage the multi-million dollar risks of large civil settlements, and organizes cases prosecutors advance to convict criminals. Institutional managers of equities might pass over shares of Taser, because they appear expensive based upon the combined corporate earnings from both segments. We believe such an approach is deficient, because profits in CEWs are undercut by losses in Axon, where the company is accommodating large trials with cities such as New York and London that might soon purchase a subscription to evidence.com. In our opinion, Taser showcases how GARP Research has found interesting opportunities for its institutional equity research clientele through intensive fundamental research and deep understanding of how to analyse stocks through modelling financial statements and segment details.