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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.

TASR: Oversold and sitting at support - potentially very bullish. 200 DMA has been acting as support for the last three months!

Happy Investing/Trading!

Henry K. To, CFA

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