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Wrap Technologies Batman Device Is Mostly Impractical In The Real World - $3 Price Target

White Diamond Research profile picture
White Diamond Research


  • Wrap Technologies’ (WRTC) BolaWrap targets a very small subsegment of the market - confrontations with the mentally ill.
  • Due to the amount of space needed to fire it, the BolaWrap only works outside in open areas.
  • Most of WRTC sales are to tiny police departments, generating immaterial revenue.
  • Anti-police violence protests have cooled off, expect related stocks like WRTC to do the same.
  • Even with a realistically bullish outlook on BolaWrap sales, WRTC revenues would still be below $5M per year.

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Wrap Technologies (WRTC) is a one-product company that features the BolaWrap 100, a hand-held remote restraint device that discharges an eight-foot bola style Kevlar tether meant to entangle a subject at a range of 10-25 feet. WRTC went public on the OTC in May, 2018, shortly after it completed a $3.5M “self-underwritten IPO”. It was trading on the OTC exchange until it got uplisted to the NASDAQ on 12/4/18.

Bulls will argue that recent law enforcement protests and calls for change will make WRTC’s BolaWrap a secular beneficiary. The reality: the BolaWrap is an impractical device with a limited use-case for law enforcement. As the tether extends 8 feet when fired, it requires at least 4 feet on either side of the target to extend properly, and a minimum of 10 feet of further separation between the officer and the target.

A demonstration is shown with someone in this stance on the front page of the company’s website, as shown below:

Source: wraptechnologies.com

When would a suspect ever stand or behave in such a manner in a hostile confrontation?

We’ve spoken with many police officers asking if they would ever use the BolaWrap. Many have told us that using this device would be in such rare situations, that it would be hard to use.

The only plausible application of the device appears to be during street stops. Which are when a police officer stops a citizen on the street to ask questions or ask to conduct a search. According to the US Department of Justice (Table 5) only ~1.0% of police to public contact takes place during street stops. Even more extreme, is that only 4.1% (Table 17) of the altercations

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White Diamond Research profile picture
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Analyst’s Disclosure: I am/we are short WRTC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (77)

Still holding my short position from the initial article. Excellent research once again by White Diamond.
I’ve seen a personal demonstration with law enforcement in my area whom made a recent purchase. My concerns after seeing the Bol Wrap properly deployed with this agency diminished the concerns I had after reading your article about the Bola Wrap not working effectively.
J.G. Collins profile picture
BolaWrap was deployed effectively against an EDP bent on suicide by cop just last week.

It's BEST use is for plain clothes and warrant squads to make arrests outside.

See my article. I think it's a winner, ultimately.

White Diamond Research profile picture
You ain't seen nothin yet...
@White Diamond Research I saw the product deployed and it works. You also basically implied management was fraudulent. The product works I saw it myself. “you ain’t seen nothin yet”? I gave your article thought and considered it possibly credible. Post comments like that are are not short worthy . That’s a weak reply
Nat Stewart profile picture
Yet another shooting that documents the urgent need for a less-lethal form of restraint.

Would the Bola Wrap have allowed the Jacob Blake controntation to end differently?

I could be wrong (I am not an expert on the device's deployment), but I think a few shots of the Bola Wrap as Blake walked away from the officers would have saved his life.

Instead, we have another death that has (rightly or wrongly) lead to more mass mayhem, property districution, and additional deaths.
J.G. Collins profile picture
Blake isn't dead; he's paralyzed. From the video, I think there is a possibility he would have been restrained by Bolawrap from his waist up, which might have given officers a chance to take him down.

Speculation, of course. And no idea what preceded him near the car.

Don't underestimate the ability of undercovers to deploy Bolawrap on somebody under warrant or with a mental health warrant. "60 Minutes" had a piece yesterday with cops trying to serve a Red Flag warrant on a mentally disturbed person with guns. A 10 minute shootout occurred with the guy dead, along with an LEO.

Same situation, framed differently: mentally ill guy, presumably armed, is walking back to his car after buying groceries. Undercover deploys Bolawrap and other undercovers and unis pounce on the guy. Done. No casualties.
Nat Stewart profile picture
Perhaps the most challinging thing about investing in an early stage company is the many twists and turns that can last for years, even if they do "hit it big". I myself had a big position in Taser at one time in the early 2000's but was shaken out during a period where the stock was utterly crushed - only to miss one of the greatest stock rises in history.

I found this article on Taser written in 2002. Smith and his brother purchased the "defunct" business in 1993, with 911 being a catalyst event that propelled the co into the limelight.


The thing with Bola wrap is that it appears that we have had a major catalyst event every few months - so just the sensationalistic (and many feel non-objective) way policing is covered could keep this Co. in the limelight and accelerate adoption.
J.G. Collins profile picture
@Nat Stewart Agreed. See our piece from yesterday.

I think the author here also underestimates the TAM. I very much like the CEO appointed in the conference call. It kind of makes WRTC almose a venture capital portfolio company available to retail investors.

I suspect Marc Thomas will make all the difference for this company, which was top-heavy with cops, but less with executive/managerial expertise.

They also had (for them) a spectacular quarter in sales. The market is valuing them as a going concern, and killed them because EPS was short when the real story is its a growth company.

PS: we were mostly on board with @White Diamond Research review and had submitted a story that agreed with may of their comments on Tuesday night, but the editors had not gotten to it by the time of the conference call. We changed up our view and re-submitted after Thomas was appointed.

Our piece is here: seekingalpha.com/...
Ex-founder of Taser is president of this company. I’m sure he would not have joined if he didn’t see potential. He will use his connections and insights from building up Taser to doing the same thing here, and there is little reason he can’t succeed. The movement against police brutality is not going away, and Bolawrap is low-hanging fruit for PDs to point to for combatting that. It will take patience but this company is going to do very well. Wouldn’t be surprised for them to come out with product improvements to address some of the pitfalls you mentioned too.
Michael Orwin profile picture
The new CEO ticks a few boxes.
@Michael Orwin The new CEO has a very very impressive resume and his background and experience appears to be exactly what the company needs now to take the next step. Fantastic talent acquisition. The entire top level leadership team is stacked with talent! That gives me more confidence in the company than the device itself.
White Diamond Research profile picture
Another win for WDR. Earnings was real bad. It appears that police departments agree with our report. Game, set, match, now on to the next game! We have another good short idea coming up, stay tuned.
I shorted this stock based on your report. Out of the money puts August and January. Let's see how big the dump will be tomorrow. Great job guys
White Diamond Research profile picture
Great to hear! That's what we do, help others make money and prevent losses.
@White Diamond Research can you explain why earnings Q2 are so bad?
rec'd a reply back from a couple officers that are friends and friends of mine. they both said you probably shouldn't try to posit what it's like to be a police officer and how, where this tool will work and not. They thought that thesis alone was silly at best.
White Diamond Research profile picture
RCH06, not sure if your the same retired cop who emailed me and said this was "the most ridiculous report you've ever seen". But either way, I hope you and your colleagues keep catching the bad guys, we appreciate you!
J.G. Collins profile picture
Well, now that NYC police are prohibited from their knee on the thorax of a suspect, I don't know how the could effect an arrest WITHOUT a BolaWrap.

Wondering it the fellow in the Wisconsin "domestic dispute" who allegedly walked away from cops who told him repeatedly to stop and who then entered a vehicle might have possibly been saved by a deploying a BolaWrap (or a Tazer) without resort to deadly force. The settlement with the guy or his family will be millions, whether the shooting is deemed justifiable or not.
For a couple of thousand dollars a police dept could save itself millions
@hugo1 couldn’t agree more! It’s simply an insurance policy!
Nat Stewart profile picture
I think you make some good points about the potential effectiveness of this tool. The problem for a short case, I am not sure it matters.

It only takes ONE incident that *might* have been solved with this device to create massive physical (riots, mass hysteria, etc) and public relations disaster for a police department, a city, even nationwide.

That is the world police are at present dealing with, and IMO in part how the device should be sold.

It is, "one more tool on the belt" to potentially prevent a lethal situation - and that is all it has to be to have tremendous value.

What if it was just 15% effective plus the ability to say, "we made a good-faith effort to use a non-lethal, non-painful tool before moving on to the "hard" stuff?

For example: What if Michael Brown could have been detained with a few shots of the bola wrap?

Perhaps it would not have worked on such a big, strong guy - but, it *would* have shown a desire on the part of the police to use a non-painful, non-lethal restraint method - it is possible that the documentation of that good-faith effort via the bola-wrap would have been nearly priceless, given subsequent events.

At best, it works, at worst, "we did all we could.. look, we shot the bola raps multiple times before we were forced by the perps actions to escalate."

Given the above logic, it is posisble this tool could make an enormous amount of sense for every police officer in the country, particularly urban police.

Last - Why did the co-founder of TASER Thomas Smith agree to become president of this company? I assume he knows a great deal about what can and will sell to police departments.

If they do get some big wins and it even *slightly* appears that this might follow TASER's trajectory, the stock could explode higher with no reference points to fundamental value making a dimes bit of difference.

No position in the stock, but IMO the logic/evidence in this report, even if mostly true, could be less important than it seems.
White Diamond Research profile picture
I see your point. But it's not a matter of "shucks, i tried the bolawrap, it didn't work, so i had to go to the taser or gun". If the bolawrap is used when it shouldn't be, it could make things even worse for the suspect and the police officer. And the cases where it should be used is so rare, that it could end up just being a nuisance for the officer to carry around and consider ever using.
AgileDave profile picture
The same applies for the pistol they all wear. Most cops go through a career never pulling a gun except at the range. When its needed, you always wish it was bigger. Cops have many tools, and bola wrap is an excellent addition. Well trained cops will use them correctly and effectively. Subduing a violent suspect never makes things worse, except for needing to launder a clean uniform and doing all the paperwork.
22thoroughbred profile picture
@White Diamond Research I can and have seen situations where a gun was used when not needed but cannot see and situations where this could be used and unnecessary. It’s the ONLY non-pain compliant tool the PD has anywhere and it’s easier to explain away use of a non painful tool rather than pain compliant one. The only situation where I see any liability is a metal grip in an eye and a blind in 1 eye criminal is always better than one with 2 eyes.
The 1200 hundred strong Fairfax County could have used a wrap a month ago when an officer tasered a mental subject. The officer has been indicted, and the prospective award to the subject will cost more than a lot of bolowraps.

It’s a tool . A tool’s utility is specific to the situation. If a subject is an indoor environment, there chances of successful flight are diminished and a wrap type tool may not be needed. 

In addition to mental incidents, haven’t we seen or read of enough cases , Atlanta is one case that comes to find, where a fleeing subject was shot; and where a bolowrap might done the job of apprehension.

If police departments don’t have bolowraps in their tool kit, they can be well assured plaintiffs attorneys will raise the issue when judgement day arrives for the officer and his department.
srg045 profile picture
This was by far the best article I've read on this company. It was honest about the limitations of the technology. Honest about the departments using it. And honest about the people in charge. Well done.
White Diamond Research profile picture
Thanks. We're here to tell it like we see it, present the facts, and let people come to their own conclusions. We want to help both bulls and bears and at the same time make a little money for our work.
CFA413 profile picture
I think you do a real disservice not modeling a single sale in Europe (they are currently selling into Spain), Indonesia or any other foreign market. Do you know they have many distributors globally selling their products? Also, have you factored future products around this brand? The revenue numbers you forecast seem like they are predicated on this company only focusing on small departments within the US
White Diamond Research profile picture
We just calculated the total in terms of amount of presentations and what percentage turns into a sale. That's on a global basis. No, we didn't factor in future products.
@White Diamond Research you based this $3 share price on the ratio of sales pitches to sales? 🤦🏻‍♂️
CFA413 profile picture
@LTHawkins seems like a very elementary way of thinking about a growth stock.
22thoroughbred profile picture
There was an article in the Sunday paper about a large city in New Mexico equipping all 30 (?) officers with the BolaWrap


im a bull on WRTC. I see many on this site take it personally when someone disagrees with them. I like hearing the bear case. I thought this was a very good piece. I dont think the Bola Wrap is appropriate for every situation but there are many situations where it would be. If I ran a department i would view it as another tool that could enhance the ability of my officers to perform their job safely. That doesnt mean Im right on WRTC, just my thoughts. Thanks for the article. I enjoyed it
The Auryn profile picture
@White Diamond Research Good article. I agree with the majority of it. It looks like a gimmick.

"Unless the confrontation is in a mansion, the device is restricted to street confrontations."

How many street confrontations are actually in the clear? What if the person is next to a car, tree, building, wall, etc (lots of blockages in an urban environment)? What if it wraps around the neck? What are the liabilities?

"We estimate that an average of 3 cartridges will be used per year per BolaWrap device."

I would double that number or triple it as they'll use the majority of their cartridges for ongoing training purposes.
AgileDave profile picture
Most police confrontations are on the street. The notorious recent cases were all wide open spaces. This is just another tool. Cops have many tools, from radios to M16s. They're well trained in all of them. They always have the option of lethal force. Wrap is better. Just one of them in Minneapolis and Atlanta would have saved a lot of lives and billions $ in wanton destruction in the past couple of months.
Try not to be a cop if you've never been one. I think it's futile to to posit this metric of how much and where and when. I work with a lot of officers and not one has registered much in the way of concerns and welcomes it as a low lethal option. Btw...if it goes around the neck there isn't any issue with constriction which is what I think you are angling for...and there isn't any. This was addressed in a couple of public demonstrations.
Michael Orwin profile picture
This is from 2018 so it will be old news for many here. "Brooklyn Borough President Eric L. Adams personally demonstrated the BolaWrap ..." www.youtube.com/... , 31 minutes. It's about restraining people behaving dangerously who have emotional issues. The notes say "According to NYPD numbers released last year, the department responds to nearly 150,000 emergency calls every year for service involving a person in mental crisis.". With a 1% rate of use of any force, that's about 1500 cases where some force was used. About 8:30 in, there's video of a slow chase, the result of which was described in the headline "Cops Taser 86-year-old unarmed black man for his own safety, leaving him in intensive care", and another speaker says the guy was suffering from dementia. I've no experience in law enforcement, so maybe this opinion shouldn't count for much, but after watching the video and then this www.youtube.com/... of "BolaWrap: Wrap Compilation 2 - Running & Walking Away", I' believe BolaWrap would have been effective. I expect there'd have been some risk from falling, given the guy's age, but you don't want to add electric shock to that.
Michael Orwin profile picture
"A demonstration is shown with someone in this stance on the front page of the company’s website, as shown below:...When would a suspect ever stand or behave in such a manner in a hostile confrontation?"

The question might be relevant to presentation, but not to effectiveness.

"FWPD Safely Takes Down Man with Shotgun Using BolaWrap" americansecuritytoday.com/...
“Mostly impractical in the real world“ so Mr. genius where has this been tested if not in the real world? So you’re telling me that the factories not the real world or offices aren’t the real world the parking lots not the real world and you’re also saying that none of the police departments they went and showed it to for years - before any of them bought those weren’t the real world. you’re saying that you’re limited intellect and writing short articles makes you more of an expert in all those police departments they went to before they became a public company. Wow what it must be like to be that smart yet still not know the definition of real world. What kind of lunacy is the short world where you’ve created your own dictionary. But I understand a person with your negative point of view- that the world is horrible and negative and you should take advantage of anybody weaker than you -you would not be in favor Of a passive restraint because it does not allow you to control those weaker than yourself. Where as the rest of the world that has come to understand and acknowledge that civil liberties are of upmost importance -we can see the value of this passive device with our eyes closed. Stock or no stock it saddens me that you do not see the same thing as we do.
White Diamond Research profile picture
This is chess not checkers, boi.
White Diamond Research profile picture
Haha, i was channeling Denzel Washington from Training Day with that statement. But the point is, you have to think 3 steps ahead when playing chess. The market is the same way, it's like a chess game. We made our move. Woody Norris today made his move by converting 83K warrants. What will happen next? Things aren't always as they seem...
Personal perspective from a city cop (me). I would use this bola wrap every single chance I got. Wait for WRTC to make a two-shot device (following tasers development). While WRTC says it’s for mental health, this device will be used for all types of interactions so long as there are the two components of time and space. Space on the tool belt is overrated. Put it on the vest. Small departments are sold to because they’re quicker. This totally ignored the gigantic market of international sales. Whole countries will put in giant purchase orders. The large American departments are mired in beauracracy and move so slow. They’re basically, with their leadership, able to do everything different that didn’t go well with tasers first roll out. There will be recurring revenue and there will be R&D that makes subsequent devices which will bring in huge revenue once all cylinders fire; smallUSA deps, large USA deps, and MOST IMPORTANTLY THE INTERNATIONAL DEPARTMENTS THAT WILL LOVE THIS
bvandersall profile picture
wait till you can attach it to a picatinny rail.
My police officer acquaintances have basically echoed just what you have said and more.
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