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It’s cover or die time for millions of shorted shares… If all goes according to plan, short positions will rush to cover en masse come June 17, 2007 – a move that could send TASR to our near-term price target of $15.
For Early Alert Trader readers, it was early May 2007 when we last played shares of Taser (TASR) for 12% on the underlying, and 45% and 90% on the January 2008 10 calls (LXFAB). The first round buy was a no-brainer on high likelihood of a Sarkozy win. And why not… here was a guy that reportedly long held a desire to arm 250,000 to 300,000 French officers with Taser weaponry.
Now, ahead of a June 17, 2007 election that could hand the Union for a Popular Movement its biggest majority since 1958, we’re buying again. That win would easily open the floodgates for reformation, new policy, including possible Taser orders for French police, and tax cuts. Say, for example, France decided to pick up 300,000 Tasers at $1,200 a piece. That’s $360 million in revenue for Taser.
According to reports, Sarkozy’s party is on course to win that majority, having won 39.54% of first round elections. A second round win would hand the party 501 seats in a 577-seat assembly.
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