Why the Wrap Technologies stock appeared today

What happened

It’s … anything but an envelope. After climbing 33% since Monday night, shares of non-lethal police equipment maker Packaging technologies (NASDAQ: WRAP) are almost certain to end this week on a positive note as stocks rise another 15.2% in Friday trading (1:45 p.m. EDT).

So what

What drives the Wrap stock? PR positive.

Two days ago, Wrap announced that the Seattle Police Department had approved a pilot program for the BolaWrap Remote Restraint, “a patented portable device that discharges a Kevlar tether to temporarily restrain itself at a safe distance. . ” Then at midday yesterday, the company announced that the Mountlake Terrace Police Department – also in Washington State – had successfully used a BolaWrap device to restrain “a subject in mental crisis walking down the road. and in front of vehicles ”.

“Subject ran for the freeway overpass,” Wrap said, “and officers were concerned he intended to jump. An officer pursuing subject deployed the BolaWrap over subject’s legs. , allowing officers to take him into custody without injury.

Image source: Getty Images.

Now what

This is not the first time that BolaWrap has been used in the real world; Wrap makes a point of highlighting each of these occurrences with a press release in near real time! But this is the most recent, and added to the positive news from Seattle, it seems to have sparked some sort of gold rush in the Wrap action, turning what looked like a 52 week loss in the stock price. in 52 weeks. Gain.

Before you assume that this rally will continue, just remember two things: First, Wrap never made a profit. (Rather, its losses have increased for five consecutive years.) And second, at its current valuation after the rally, Wrap Stock is costing 69 times its total, annual, unprofitable turnover.

That’s a lot, and the best decision for wrap investors here might be to call their investment a wrap, take the profits, and call it a week.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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