Revenues in the 2nd quarter were probably impacted by the halt in the Israeli fence while the Israeli Supreme Court decided upon the constitutionality. Issue now resolved and 2nd half revs from the fence should return to more regular levels.
Revenues were impacted by increasing US presence and marketing, and expansion in California where many of the big general contractor security companies are located.
Revenue from any work they did for the Olympics will probably fall in this quarter.
Inspite of 9/11 and the continuing terrorist threat, local and state governments, power plants, chemical plants, airports, etc. still do not have adequate security systems or plans in place. They seem to think it will happen to the other guy. Look at all security companies. Many of the projects they have bid are still waiting for approval, some for as long as up to a year or more. What utter folly.
MAGS is in the right place at the right time with the right products. Only when companies and governments truly realize the consequences of their inaction will they spend the money needed in today's violent world.
You make a lot of sense but You may want to read the papers because all the spending went to the war in IRAQ so it will take an increase in tax dollars to finance these projects. More debt means selling bonds, which means lower bond prices for a higher and attractive yield to bond holders. This in turn will be very very expensive to the tax payer and costly on the stock market.
You ever wonder why it takes an act of congress to get a stop light in your neighborhood? I mean in one part of my neighborhod it took the city years to finally wake up and place stop lights down a busy road! You need so many accidents, so many injuries and so many deaths before the government wakes up and spends! So while you are hoping and praying that the stock wil go up, the stock is telling you otherwise! Sell it, go short!
No thanks. I'm a long term investor, and I believe that MAGS offers above average returns over the next 5 years. And is a good thing for the world along with some of the other security companies.
Unfortunately, most governments are cash strapped due to low tax revs and think they can put off the needed security spending. And private utility, chemical, financial, etc. companies have their head-in-the-sand attitude and are sitting on their cash until it's too late. Didn't 9/11 teach us anything?