1. All the Longs are believing that Shorts are the entire key to their investment, while Short interest is always part of the mix its hardly the over-riding reason for the stock price action. It�s also not a compelling reason to hold a stock based upon short term trading action.
2. The CEO and other insiders are dumping shares into longs. Far from the claims of Shorts driving down the price, the reality it insiders have dumped over 80 million dollars of stock onto investors.
3. The products are not unique enough, and they have no significant patents.
4. The CEO projects very modest growth. No one disputes his modest projections and nobody has a better understanding than him
5. The fantasy that Sellers are comprised of Shorts verse real sellers is just that, a fantasy. Its fun to believe there are evil Shorters, and it�s a gallant fight, but its children stories, much like the bedtime stories about the Market Making buying up your shares on the cheap.
6. MAGS is not seeing sales jump, if the were going to, they would have in 2002 or 2003.
7. Daytraders come, Daytraders go, Daytrader have better options
8. At some point the hype stops the people buying the STORY move on, they don't care about all the fundamentals of the stock, because they only trade the stock for days.
After the Daytraders leave they leave behind true believers, these folk hold on because they bought they bought the hype. The hold and hold and wait for their dreams of riches to come true, eventually the give up and move on.
9. You can tell by the post here that the Stock promoters are pushing stock.
10. I am sure that some poster will attack me, will try to claim I stupid and whatever, but the truth of valuation on stocks, and fundamentals, has a long memory, the stock pumpers have a small window to promote and pump a stock up, but in the end the market place catches up, market participants are rationale, and like the CEO, high valuations get sold off. MAGS is no different
11. "This time its different"....NOPE this time is NOT different....we all know that.
Some good points.
An intelligent post for a change.
Yet, I agree with others that logic does not rule in the market, there is also Fear (as in FUD), and Greed.
And if the CEO is only seeing lukewarm future, why the coming expansion in California, and why did state of California select them, and wouldn't a doubling of workforce mean something for future business, and doesn't Mr. Market tend to look to future earnings?
And isn't the insecure state of the world a trigger for a richer premium on the security sector?
Market going up? Yeah, buy into the sucker rally. VIX is too low for the market to have legs imo. Just wall cheat selling into the suckers. Dow looks like death(just like before 911). Only safe play are HS stocks like MAGS.