From today�s Barron�s, April 10:
�Magal Security Systems (MAGS)
Mira Mag lowered its position to 2,535,096 shares (31%) after it sold 1,593,836 from March 24 to April 2 at $15.04 to $22.02 apiece.�
Mira-Mag is the Controlling shareholder of Magal, and is controlled by Magal chairman and CEO Jacob Even-Ezra and Magal director Nathan Kirsh. As Barron�s reported, they sold about 1.6 million Magal shares for between $15 and $22 for a total of $31.5 million. The shares were sold between March 24 and April 2. This is the largest sale of shares on Wall Street by Israeli insiders so far this year.
Mira-Mag's stake in Magal has fallen from 51% to 31%.
Mr. Even Ezra admitted (in an interview with �Globes� on April 7) that the price became too high and that this was the reason for him to sell. He started to sell on March 24, when the price was $15, which he considered as too high. Now the price is close to $40, with no news. What do you think he will say about the stock price now?
I'm not sure, but what is he going to say when it's 45, then 50, then 60, then...? He's gonna' realize that he doesn't understand the stock market. Keep in mind, he sold a huge block of shares to someone because he thought the price was too high; the only reason the buyer paid that was because they beieved the stock was ridiculously underpriced -they got a deal. Remember this principle: Every successful trade involves both parties believing they got a deal, always. Also, keep in mind big money ALWAYS expects their investments to go up by multiples, i.e. 2 or 3x or more, than what they paid for them.
BTW, Barron's is usually wrong more times than IBD from what I see on message boards. That report means very little to me.
P.S. I hope he sold his shares to another group of Jewish investors. That would be funny to me.
TASR iinsiders were selling at 60 bux in February. Wat's your point?
MAGS is still very bullish. A split is inevitable to increase the liquidity especially when the float changed hands more than 15 times last week.
Gap up on Monday folloowed by split announcement later in the week.