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Moving Higher

Here's a look at some news that's lifting shares of two model portfolio names.
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Two of our holdings are moving higher today on news and we wanted to update readers. We are taking no action in this Alert.

JetBlue (JBLU) is trading 2% higher at $11.71 after announcing Thursday evening that its board of directors approved and adopted an executive change in control severance plan. Under this plan, JetBlue's senior executives are entitled to salary and benefits in the event they're fired or quit within two years of a takeover.

A change in control amendment usually increases the chances of a takeover. For example, Dow Jones DJ revised its change in control plans on June 8 following a $5 billion offer from News Corp. (NWS) . Also, sunglass manufacturer Oakley OO announced a change in control in March. Shares were trading at $20 then, and Italian luxury sunglass manufacturer Luxottica announced that it would buy Oakley for $29 a share two weeks ago.

With shares of JetBlue down about 30% from their January highs and the recent change in control news, we believe the chances of a takeover in the short term are likely. Since its initiation on May 7, our position in the company is now up about 10%. We maintain our One rating and $13.50 target price.

In other news, Taser TASR announced that the U.S. military placed an order to buy 2,400 Taser X26 devices. Shares are trading 4% higher at $14.

Taser said that this is the first order of a five-year contract, with the possibility of future orders with a maximum value of $22.7 million. The order is expected to ship in the second and third quarters of this year. Also, the company announced that it will launch its consumer C2 Taser on July 23, which should be another big revenue generator for the company.

It probably seems as if we are writing daily Alerts on Taser, but new orders just continue to roll in. Management has done a great job of reducing liability risk over the past two years, and it's finally reaping the rewards. We maintain our Two rating and continue to hold shares.

Frank Curzio is a research associate at TheStreet.com.

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