I replied to this once, but it was deleted by the sensor. I agree with this post and this article. Homeland Security contracts will go to domestic companies, not foreign. In looking at their profile, MAGS makes peremiter fences and motion cameras. Well the guys the FBI are looking for are already here, so the fence didnt work! Besides, they are after public targets, not private factories. You cant fence in the whole public sector, we have to be vigilant but we are also a society based on freedom of movement.
Net income for MAGS rose 23% to $1.9 million. This was all from the electronic fence between Israel and Palestine, so it doesnt appear that they are generating alot of revenue from other sources yet. On top of that, all the insiders sold a ton of stock last April. Now, if MAGS is really going to $30 or higher, why would they sell? They know whats coming down the pipeline. Motion detector cameras, well IPIX sells those also and they have yet to make a single sale. They wont start shipping their 360 degree view camera until June. MACE sells personal protection devices (mace cans) and car alarms. Hmmm just what we need to thwart terrorists are car alarms, very effective.
I can hear it now..."Achmed, I killed all the guards, stole the uniforms, strapped the bomb to my body but just as I touched the car, it started beeping so I ran away".
Dontcha think this sector is just a little over hyped? Cramer put out a warning today on MAGS, MACE, IPIX and TBUS that their gains are "unsustainable". Now I agree that Cramer is an egotistical, overblown, front running jerk off but he does have access to what The Street is doing. Hes got alot of sources and does get em right once in awhile. Cramer is the reason I quit watching CNBC, he would hype or slam a stock depending on his position. I have to believe that he and alot of other big boys are short MAGS now from the high $21's. So I will watch tomorrow and see what happens, but my guess is that The Street and the Insiders know best. MAGS has such a low float, if it was gonna fly on this new scare in the news, today was the day yet it couldnt hold $21. I believe alot of forces are at work to push it back down a few points.