Individual Stock Watch List - TASR
(August 11, 2004)
TASR: I am going to spend a little bit of time tonight to discuss the
stock that every day trader knows - TASER International, Inc, - a developer
and manufacturer of "non-lethal" weapons and self-defense devices which has
been in the news quite often recently. Over the 12-month period preceding its
all-time high made earlier this April, the stock of the company has appreciated
approximately 10,000% - a significant rise even compared to the performance
of various stocks during the bull market of the late 1990s.
Since then, TASR has developed quite a following with institutions and day
traders alike - and this author does not believe that this will disappear anytime
soon. The trend of non-lethal weapons deployment among law enforcement agencies
should also continue. I believe that the recent negative publicity on the lethality
of TASR products is just one of the many setbacks that a successful company
will experience - not unlike Intel with its original Pentium chip and AOL with
its busy signals back in 1997. It is still too early to tell but I believe
the deployment of non-lethal weapons is a long-term positive trend; and definitely
not a fad. I also believe TASR will work its issues out sooner rather than
later. Obviously, other law enforcement agencies agree as the company announced
that four law enforcement agencies placed new orders
for TASR products back on Tuesday.
As far as technicals are concerned, there is a current short interest in the
stock of over 70% - suggesting a lot of potential on the upside. The stock
has also historically found support at its 200 DMA - which is where it is now.
Adventurous traders can buy here and place a stop right under its 200 DMA at
$25.50 or so.
Henry K. To, CFA