Hmmm I have to agree with this post. Additionally I think our government will spend the bucks for Homeland Security with domestic companies, not foreign. Looking at the Yahoo profile of MAGS, they make perimeter security fences etc. Well the guys the FBI are looking for are already here in the country, so da fence didn't work! The terrorist targets will be public places, not private business or factories. You can't fence in the whole public sector, we need to be vigilant but we also live in a society based on freedom of movement.
Net income for MAGS rose 23% so far this year, to $1.9 million. This revenue came from the electric fence between Israel and Palestine. So, other than this fence, it doesn't look like they are generating much revenue from anything else so far.
In checking Insider Transactions, all of them sold a ton of stock last April. They also sell motion detector cameras, same as IPIX. So far IPIX has yet to sell any cameras at all, their 360 degree camera will not start shipping until June. And then there is MACE, who sells personal protection devices (mace cans) and car alarms. Just what we need, car alarms to thwart would be terrorists. Sorry, but this whole sector has been hyped up just a little too much.
MAGS may run a bit more, but reality will set in. This is an email received today: "Midday today, The Street.Com warned that the premarket gains of 4 security plays (IPIX, MAGS, MACE, and TBUS) were unsustainable in their opinion. They warned that these security plays can lose their steam in a heartbeat, as they did in mid-April".
Now, I will be the first to admit that Cramer is a front running, blow hard, egotistical jerk off who doesnt belong on tv. But he also has tremendous sources on the Street and what the big boys are doing, he does get some calls right! He's got alot of contacts, and I have to believe if he says these 4 stocks are overhyped then he and alot of other big players have shorted them. That's why I quit watching CNBC, he would come on as a guest and slam a stock, or praise a stock, and you knew he was either long or short the stock and front running it. If this puppy was going to $30 or higher, why did all the insiders sell last month? They know what's coming long before the rest of us, they know what contracts are in the pipeline. I'm going with them and The Street, I think we get a small pullback here in the next day or so. It's run too far too fast on no significant news.