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Magal Security Systems Ltd. Message Board

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  • scratching_my_head2 scratching_my_head2 May 18, 2004 6:44 PM Flag


    I'm glad you said to be realistic, because that's what I am a realist. There is a reason for the downtrend in all the security sector.

    For Mags it's very simple.

    "Revenues for the first quarter of 2004 reached US$14.2 million, an increase of 11 percent compared with the first quarter of 2003.

    Compared with the fourth quarter of 2003, revenues decreased by 20 percent."

    This is from the earnings release on the last quarter. Note a revenue decrease of 20 percent from the last quarter. That's substantial. That's when the stock price dropped from $25 to $14. That tells me the street did not like the revenue drop.

    That accounts for the drop. I'm a momentum investor. I could care less what happened to the stock. I care about what's going to happen. I'll buy if it's going up, and I'll sell if it's going down.

    This stock needs news to move it otherwise it will drift down. My hunch is there will not be any good news near term since this company has been in business a long time. If the recent turmoil around the world has not increased revenue nothing will.

    For those with blinders on the CEO even said so with the latest earnings. No new contracts, and pipeline years away. Insider sales tell the rest of the story.

    But you know what all that does not matter. This stock, and all the other homeland stocks can generate another rally. Because the stocks are heavily shorted, and any news will bring back the momentum traders such as myself. So it really does not matter which way it goes just as long as it goes.

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