Taser Inc. Continues to Bounce Back

Taser Inc. (NASDAQ: TASR) bounced back on Tuesday by $.55, or 3.63%, to $15.72, continuing a three-day reversal that saw shares test $14.00 support following a 35% post earnings decline. The reversal in momentum started on Friday with the announcement of two orders from law enforcement agencies, nothing major but it was a good enough job by Taser investor relations to stop the bleeding.

Following up on that Monday, was Jefferies & Co. analyst Matthew McKay who labeled the market action as "indiscriminate selling," making quite the statement that Taser had over $20 million of revenue already "in the bag" for the third quarter. He said that with 100% earnings per share growth the stock looked attractive at 37x 2008 earnings.

Obviously the bulls are running with this because long-term growth is still intact with a wide range of growth opportunities stemming from Taser's C2 as well as domestic, and international law enforcement sales. Though expectations have begun to ramp up again despite conservative company guidance, there probably won't be any major catalyst until the fall when there are more significant orders to be announced, such as the long rumored large purchase order from the French government.

In the short term, chart resistance can be seen at $16, and the gap at $16.52, while support lies at $14, and the 50-day moving average is at $13.22.

TASR 1-yr chart: