Schaeffer's Market Observation Features TASER International, Wal-Mart Stores and SAP AG.

CINCINNATI -- Today's Market Observation features TASER International (NASDAQ:TASR), Wal-Mart Stores (NYSE:WMT) and SAP AG (NYSE:SAP). Schaeffer's Market Observations are market-based reports that provide insight and analysis from a unique and unbiased perspective. Market Observations are published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. To receive a free email notification each time a new commentary is written about one of the featured stocks or any of your favorite stocks, click on the following link: http://www.schaeffersresearch.com/addinfo

TASER International

TASER International (NASDAQ: TASR) is a high-profile manufacturer of stun-gun technology. TASR stunned the options-trading world yesterday when more than 18,000 contracts changed hands on the April 17.5 put (QURPW). More than 13,600 of these translated as new positions, boosting open interest at this strike from 1,698 to 15,330. This in-the-money strike is now the site of heaviest open interest in the April series.

The equity's Schaeffer's put/call open interest ratio (SOIR) has been shuffling sideways for the past several months. With 191,000 open call positions and 154,000 open puts, the ratio weighs in at 0.81. Because TASR is fairly new to the options business, an annual percentile ranking is not yet available for this reading.

Checking in on other sentiment indicators, short interest on TASR has declined 35 percent since reaching a multi-year peak in September. There are now just over 22 million TASR shares sold short, accounting for more than 42 percent of the equity's available float. But on the other hand, all of these open shorts could be eradicated in about two-and-a-half days of trading at the stock's current average daily volume. As such, there is little in the way of short-covering protection.

There is also little in the way of analyst coverage for TASR. According to Zacks (www.Zacks.com), only one brokerage firm follows the shares, and that firm offers up a "strong sell" rating.

TASR has been trapped in a downward spiral since December 30, closing last month beneath its 20-month moving average for the first time in nearly two years. The stock has breached its 10-week and 20-week trendlines, which themselves have now completed a bearish crossover. The shares are now hovering around the 14 level, which has offered a semblance of support since early 2004. A break of this threshold would put the shares into new-annual-low-territory.

Thanks to disappointing technical indicators, TASR has earned a relatively low Schaeffer's Equity Scorecard ranking of 3.0 (on a scale from zero to 10).

Click the following link to see the Schaeffer's Equity Scorecard Weekly Chart of TASR since October 2003 with 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=12722

Wal-Mart Stores

Wal-Mart Stores (NYSE: WMT) should have been more wary of the Ides of March, as it broke through long-term support to reach a new annual low. The stock has fallen to another annual low already today, but summarily rebounded higher within the first half hour of trading. The stock has been battering up against the 51-52 area since July, after testing support in this zone during the second and fourth quarters of 2003. From a longer-term perspective, WMT is poised for a monthly close beneath its 80-month moving average.

Yesterday, the April 50 put (WMT PJ) welcomed a slew of put traders, as 10,232 contracts crossed the tape, more than 8,100 of which would ultimately translate as new open interest. This near-the-money position is now, by leaps and bounds, the site of heaviest put open interest in the soon-to-be-front-month series. The equity's SOIR edged higher to 0.69 (in the 68th percentile) from 0.64 (in the 50th percentile). While this particular indicator is hovering fairly near the mean, the stock's short-interest number is at its lowest point since last February. The number of shorted WMT shares slumped 11 percent last month to 22 million, representing less than one percent of the equity's available float. The current short-interest ratio weighs in at an unimpressive 2.7 days to cover.

With WMT trading at its annual low, it's a bit disconcerting to see Wall Street's continued support of the retailing stock. There are still 12 "strong buy" ratings on the shares, along with a pair of "buys," according to Zacks (www.Zacks.com). Compared to this love fest, the six "holds" and lone "sell" look paltry in comparison. A continued decline to new lows could force some of these optimists to change their tune.

The combination of dreary price action amid signs of optimism has yielded WMT a Schaeffer's Equity Scorecard rating of 2.0 (out of 10 possible points).

Click the following link to see the Schaeffer's Equity Scorecard and Weekly Chart of WMT since March 2003: http://www.schaeffersresearch.com/wire?ID=12722&obspage=2

SAP AG

SAP Aktiengesellschaft (NYSE: SAP) is more commonly known (at least in this country) as SAP AG. Hoover's reports that the German-based firm is the top provider of enterprise resource planning software. On Tuesday, options players paid achtung to the April 40 put (SAP PH), swapping more than 8,500 contracts on the near-the-money strike. This morning's translations revealed that 7,600 new positions were added, easily making this the site of heaviest open interest in the April series overall. Meanwhile, the equity's SOIR spiked to 1.95 from 1.74, advancing to the 90th percentile. In other words, this reading is now higher than 90 percent of the past year's worth of SOIR data, denoting pessimism from the options community.

Pessimism is also encroaching slowly among short sellers. The amount of SAP short interest rose five percent last month to 6.85 million. Nevertheless, less than one percent of the stock's float is sold on the short side, and all shorted positions could currently be covered in less than three days of trading.

Wall Street is relatively complacent, judging by the nine "strong buy" readings, the two "buys," seven "holds," and just two "sell" ratings.

Technically speaking, SAP has been on the rise since mid-January, gaining more than seven percent. So far, the stock has fallen short of the 42.05 level, which defines a 50-percent retracement between its late-November peak and its late-January nadir. In yesterday's action, SAP closed beneath its 20-day moving average for the first time since February 9, but it has saddled back above this trendline today. A longer-term view shows that the equity is currently being squeezed between its 10-month and 20-month trendlines.

Click the following link to see a Daily Chart of SAP since November 2004 With 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=12722&obspage=2

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About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method