OnIslandTrader's Blog : Taser for a trade

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For the original article with charts go to
http://blog.onislandassetmgmt.com/?action=view&url=taser-for-a-trade
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After five months of drifting lower with little buying interest to be seen, Taser (ticker TASR) finally is making moves off its latest quarter. We love to see big candles like this on heavy volume, especially when buying interest carries through to the close. Even better if it happens on a day when the rest of the market is in the shitter. Revenue growth is negative, earnings estimates have been coming down recently, and growth expectations this year are weak, so this isn't our typical long candidate. However, growth expectations for next year look great (current ests are for 0.02 per share this year, and 0.21 next year) and it's hard to ignore today's action.



If you're looking for a gamble with a decent risk/reward payoff, consider opening a small position with a stop below 3.70. That's 0.63 below today's close for a 15% loss so size the position accordingly.