Woodward Trading Company Initiates Coverage of Saf T Lok Inc. with a Strong Buy, School Tragedies Continue...
ATLANTA, May 27 /PRNewswire/ -- Woodward Trading Company has initiated coverage of Saf T Lok Inc. (Nasdaq: LOCK - news) with a STRONG BUY recommendation, placing a short-term target of $12.00 to $15.00 per share and a 12 month target of $30.00 per share. A changing political environment and expanding fundamentals, make shares of Saf T Lok Inc. timely and very attractive for aggressive investors.
School tragedies continue...recently America has witnessed several school shootings in Jonesboro, Ark., Paducah, Ky., Edinboro, Ill., Pearl, Miss., and last week in Springfield, Oregon. In Springfield, a 15-year old, who had been expelled the day before for carrying a gun, walked into the cafeteria and opened up fire on the students and faculty. Last year, more than 6,000 students were expelled for bringing guns to school.
Events like these have spurred a rash of gun-control and child-safety lock bills in Congress, as well as, state and city governments. On May 18, New York City finalized Initiative 69, requiring all handguns sold to come equipped with child safety locks. Likewise, New Jersey State Senator C. Louis Bassano, a member of the National Rifle Association, announced the introduction of similar legislation. Expect this trend to continue and expand across the nation.
In past years, gun control legislation has met strong opposition from Second Amendment advocates like the National Rifle Association and Gun Owners of America. Organizations lobbying for ''gun control'' like Handgun Control Inc., lead by Sarah Brady, and representative Carolyn McCarthy (NY-04) have fallen short in their attempts, because of a simple flaw in their approach. They have pushed for low cost, trigger locks as a possible solution. Most trigger locks are cumbersome and bulky, require a key, and can only be applied when the gun is unloaded. Research has found that nearly 40% of all handguns are kept loaded and unlocked. Understandably, gun owners want instant access to their weapons. Note the grid-lock. If given another option, there may be room for compromise.
Saf T Lok is positioned to bridge this gap between the right and the left. Saf T Lok has developed what may eventually be the standard in child safety locks. Next generation firearms will be ''personalized,'' meaning that only the authorized gun owner can activate the weapon. Unlike their competition, Saf T Lok uses this technology and incorporates the lock into the gun, either in the grip or magazine, making it an ''INTEGRATED'' gun lock. As recent events prove, boot-style trigger locks, do not save lives. However, since the ''safety-lock'' is already ''integrated'' into the gun, it stands to reason that it will be used, thus saving lives. Saf T Lok has the most practical, ''constitutional friendly'' lock on the market.
In a related incident in Tampa last week, two veteran police detectives and a Florida Highway Patrolman were murdered. The suspect slipped out of his handcuffs, grabbed the detective's 9mm Glock and shot him in the head. Thereafter, the suspect shot the other detective and later killed a trooper who tried to stop him. On average, 1 in 6 police officers are shot with his or her own gun. Had these guns been equipped with the Saf T Lok ''integrated gun lock'' these men would still be alive today. Saf T Lok distributes directly to law enforcement and has recently begun shipping their Glock magazine locks which are very popular with the officers because of their light weight.
Currently, Tobacco companies are in the ''hot seat.'' However, given recent events, gun manufacturers may come under similar fire with product-liability lawsuits, if they do not establish an acceptable standard soon. What might have been acceptable last year for gun manufacturers (to provide cheap trigger locks with guns sold), may prove to be very expensive in the future. As of April 20, Beretta USA Corp. faces a monumental product-liability lawsuit in California from a man whose son was accidentally killed. Experts say the case would set an important precedent if the gun maker loses. The suit is scheduled to go to court in June. Now individual states are adding up their costs associated with firearm-related injuries and fatalities. The estimated cost of firearm injuries in pain, suffering and lost quality of life is over $75 billion each year. The estimated cost of direct healthcare expenditures for firearm-related injuries in the U.S. in 1995 was $4 billion. Firearms will surpass cars as the number one cause of injury-related death in the U.S. by the year 2003.
Internet stocks such as Yahoo (Nasdaq: YHOO - news), Infoseek (Nasdaq: SEEK - news), and Lycos (Nasdaq: LCOS - news) with large Internet exposure, have surged in recent months. Shares of smaller companies marketing on the Internet, like K-tel (Nasdaq: KTEL - news) and Market Guide (Nasdaq: MARG - news) exploded overnight based on future Internet business. The Internet is a powerful tool. The Internet represents an unlimited upside potential for Saf T Lok in sales and exposure. According to statistics, there are over 222 million firearms in the U.S. of which over 76 million are handguns. Licensed firearm dealers in the U.S. sell an estimated 7.5 million guns every year. A new handgun is produced every 20 seconds. With a worldwide gun count at over a billion, Saf T Lok (www.saf-t-lok.com) will use the web to link, distribute, and retrofit existing firearms throughout the world. Easy access and all the convenience of the Internet, will enable Saf T Lok to penetrate additional markets.
With their announcement last week of better than expected earnings and next quarter prospects looking more favorable, it seems that this is a company whose time and product has come. Saf T Lok may have as much monopolistic potential as Microsoft (Nasdaq: MSFT - news) did when it first started out. ''Build a monopoly, and the share price will follow,'' stated Craig H. Woodward of Woodward Trading Company. Adding, ''The lack of companies making 'integrated gun locks,' may give Saf T Lok a decisive edge in the next generation firearm market which is fast approaching.''
References: Textbook of Penetrating Injury, Journal of the American Medical Association, National Center for Health Statistics, San Francisco Chronicle, Bureau of Alcohol, Tobacco, and Firearms, and Join Together Online.
SOURCE: Woodward Trading Company |
