Investing in Taser
Investing in Taser: Ride Taser International (TASR:NASDAQ) to $25 a share by December of 2007
A Taipan Financial News
Research Alert
by Ian Cooper, Chief Trading Strategist , Early Alert Trader
July 15, 2007
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Taser International (TASR:NASDAQ) has gained nearly 80% in value over the last two months. If all goes according to plan, the stock stands to tack on another 85%, a move that could send our Early Alert Trader call options up 440% by December 2007.
Retail and institutional buyers alike are speculating on continued stellar success in the stun gun company. It continues to brush off lawsuits and to receive new orders for the use of its non-lethal weaponry. Its new product, the Taser C2, will be officially released on July 23, 2007.
Technicals are pointing to further upside. And there's a very real opportunity for Texas-size French orders now that the floodgates for reform have been opened under newly elected French president Sarkozy.
Investing in Taser: Plenty of upside left
Technically speaking, we have confirmation of continued uptrend using Moving Average Convergence Divergence (MACD) and Directional Movement Indicators (DMI) agreements.
One of our analysts, Stephen Oakes, has been developing and testing this strategy for years now. The goal was to jump on momentum stocks while avoiding the temptation of calling bottoms and tops. In essence, he was seeking to capture the "sweet spot" of a trend using MACD and DMI crossovers in agreement.
To this day, Taser still fits the Oakes methodology to a "T". Although there has been a massive run on the stock in the past month, there's still plenty of upside remaining. There is a real and increasing possibility of seeing Taser at $25 within the year. And that's just a conservative estimate: There is also a realistic possibility of $35 inside 2007.
Investing in Taser: Near Two-Year Highs
Technically and fundamentally, the arguments for upside are sound.
If you're looking for a near-term pullback in the stock, don't hold your breath. The best price you'll see near-term is $18, which is quickly being approached with each passing day. You also have to take into consideration the massive short covering. Twenty seven percent of the 57.79 million-share-float are short.
Are higher price levels out of the question? Not with the Taser C2 product hitting the market.
For a reported $350 retail price tag, you can order your own Taser. Less powerful than the police version, the C2 shoot barbs that pierce the skin and deliver an incapacitating jolt of electricity. TASER brags about the C2's "incredible take down power." Plus, Taser C2 barbs have a reported reach of up to 15 feet with the ability to cut through two inches of clothing.
With many of the sales-curbing factor now behind the company, a $25 price target is highly conservative.
Buy Taser (TASR:NASDAQ) under $18, and/or the January 2008 15 calls (LXFAC).
Tap into more profitable trading recommendations by receiving Early Alert Trader.
Investing in Taser: Related Articles
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