MAGS, the little stock that....COULD!! great earnings, great company, great chart, great future. I am in this baby and will WAIT for the rise - P&F chart says $10.75 goal. Phantom bars to $6.15. Lots to look forward to.
$10 before January or by January? Industrial and power grid protection could be more important than computer networks protection.
This is more like it. A company that makes 22 cents a share and was stagnating? Didn't make sense. This has an extremely low float so will make vast swings.
What could? The need for MAGS products are tremendous and growing . There is great competition from quality companies. I believe most investors would demand to see several Qs with profits grow as well as Rev. growth.
Here are the key metrics that will deliver mouthwatering gains in intermediate/long term, if one is an investor, not momentum trader: (Q3)
(1) Gigantic sequential acceleration of revenue;
(2) Gross Margins mirrored the percentage of growth in sales- POSITIVE
(3) EXCELLENT- Great cost control: SG @ A as percentage of revenue declined 15 percent
(4) A whopping 17 percent NET MARGIN. Even adjusting for favorable currency exchange it still is 12 – 13 percent; a mouthwatering number
(5) From conference call, expect similar revenue performance for Q4. Assuming the management simply keep cost under control as in Q3, yet another .25 cents plus for Q4 quite feasible;
(6) Technically, the stock is just 15 percent its two years high with a solid technical support
(7) The best time to invest in these speculative money losing companies is when it delivers its first quarter in the black and revenue/profit is about to accelerate; not when it is running on all cylinders. This quarter clearly meets the IBD CANSLIM method to identifying fast growing company;
(8) This could or triple in a year once it deliver one-two back to back solid quarters as in Q3. Risk is very low; rewards could be huge
If it temporarily drops a few extra cents I’ll add. My hunch is that henceforth the new solid technical support is 5 and we go from there in the months ahear.
Momentum players and week hands who bought premarket are out. The stock will have a strong close above $5. Shorts too had their best shot and smart ones have covered. My hunch is that the PPS will gradually move toward $ 6, retrace a tad and and stabilize between 5.50 to 6 or close to two year high. Any good news thereafter in the interim and PPS will be in the new high territory. See my last comment for technical rationale.
Added to my position at 5.
the easy money has been made on the long side during the last few months as well as on the short side yesterday. As said before I expect the shares to be range bound going into the Q4 release as the focus will be on 2015 and new product sales. So no need to be long or short here going forward. Will revisit the shares next quarter.
This company has astounding earnings. Perfect time to buy here with great risk/ reward. I am primarily an earnings guru and have played many similar stocks such as PLNR. It is very common to fade the next day after a big gap up. Like PLNR I think MAGS will make a huge run EOD or into Monday. Buy now on the triple bottom.
Sentiment: Strong Buy
FIMI tok the chance to buy % 40 percent, and have not sold a share. Risk that much capital when they could have sold at profit and still not selling.
The stock will strengthen into Q 4. Since you say have covered your short position, my hunch is that you hope to go long at a tad lower price. Otherwise, if you are so convinced why not make some money and go short at these 'high prices'?
They just bought the shares from KI Corporation BELOW market price. They didn't buy any new shares. No cash infusion for MAGS. No vote of confidence, just easy money. And what about the seller ? Lost confidence ?
KI wanted to sell and offered a discount, FIMI took the chance. That's all. A very minor investment for FIMI by the way.
Everybody knows that Q4 will be good so the focus will be on FY15 outlook
Only substantial new project awards might propel the stock higher from already elevated levels
There was no cash-flow statement in the release but given the fact that cash is down again without any acquisition activities this time it looks pretty clear that operating cash flow was negative.
I already stated that the company is doing somewhat better than in previous years but this is already very much reflected in the share price. Without new substantial contract wins the share will remain range bound going forward.
(1) A little over a month ago the largest, and most successful private equity firm in Israel(FIMI) took a % 40 percent stake, yes forty percent, in the stock of this company. So far they have not sold a single share. That is a gigantic long term vote of confidence in the future of the company and the stock. WHOSE JUDGEMENT DO YOU WANT ME TO BELIEVE IN: Yours who shorted the stock, and just covered, or the most prestigious equity firm which owns most of the company and refuse to sell a single share.
(2) Sales for Q4 will be exceptionally strong, year over year. On the strength of that in conjunction with the excellent margins they delivered yesterday the stock, with no further overhead supply, could spike huge;
(3) Expect new revenue source announcement, as in October, in the interim which will strengthen the stock;
(4) Cash flow from operating activities is the key metric, not total cash position. That number is very good.
(5) Technically, the stock will remain solidly above 5, likely to fill the yesterday gap on the upside in the near future.
True, not all the metrics are positive but than this is a five dollar stock with a cheap evaluation and with most institutions hesitant to take position below $ 6.
If you look at the chart, it is near two years high. That is positive. Indeed, on any good news the stock could spike by huge margins now that overhead supply is pretty much gone and shorts like you have mostly covered.
The company is basically converting some major longer term projects to revenue in Q3 and Q4 2014 which most likely won't be repeated going forward so the current revenue level does indeed not look sustainable over a longer term time frame.
Even worse the much touted Cyberseal product does not get the quick acceptance in the market place the company has hoped for.
The company is doing better than in previous years but still the nature of the business remains lumpy and profitability might again be challenged going forward. Cash has been going down constantly so this is a metric that should be watched closely when the company reports Q4.
Covered the rest of my short position for a $25k gain and would view the shares as somewhat dead money going into the Q4 report.
(1) TECHNICALS/FUNDAMENTALS: One reason why the stock slid AH was the huge overhead supply from the big spike and subsequent decline in the stock leftover from September. Now that has been cleared. The stock will henceforth trade above $ 5; the new technical support. Therefore, taking new position at or close to the fresh support is the smart thing to do, buttressed by excellent fundamental news yesterday when Gross, Operating and Net Margins all spiked huge and two in excess of the phenomenal rise in revenue.
(2) ACTION TODAY AND THE WEEK AHEAD: This morning momentum players are, and have existed the stock. This will slowly spike to the upside today but in the weeks ahead expect a huge spike as new institutional money pours in and the overhead supply is exhausted.