Taser Not Stunned on Earnings

Taser (TASR-NASDAQ) has posted EPS of $0.04 on revenues of $19.3 million; estimates were $0.04 and $19.2 million.  That marks roughly a 53% rise in revenues.  The year was actually a net loss of $4.1 million because of shareholder litigation expenses and it will have $8 million more late in the first quarter if the courts approve the settlements.

TASR shares are up almost 7% at $8.90 pre-market; its 52-week trading range is $6.86 to $11.38, so shares are pretty much in the middle area of that range.  Shares have traded nearly 200,000 pre-market compared to an average daily volume of 1 million shares. 

The largest wildcard with TASR any day on earnings or news is the short interest, which is usually around 20% of the float.  This may create more short covering as the results weren’t bad enough to bring in more shorts and some short sellers may throw in the towel.  This is both a battleground stock and a cult stock, so the reactions and swings on news can vary greatly.  Neither one of the Smith’s are scheduled yet for a CNBC appearance, but it is frequent one of them is on after news.  Watch for more short covering if one of them is scheduled to speak.

Jon C. Ogg
February 21, 2007