Magal Security Systems (MAGS) is a trailblazer that develops security systems to detect and deter human intrusion for both civilian and military markets. Magal specializes in securing all types of sensitive areas, and today announced a $1.8 million deal to help secure the Ashdod Port as well as a border crossing terminal, both in Israel. Magal is a global company with product installations in over 70 countries, protecting borders, airports, prisons, even nuclear power plants, against both theft and terrorism. The company has started to realize its potential and the proof is in Q1 numbers. Revenue increased 12% over the comparable quarter in �06 and net income rose to $298,000, or 3 cents per share, from $149,000, or 1 cent per share, a year earlier. What makes these numbers even more impressive is that expenses almost doubled over last year�s numbers due to the strength in the Israeli shekel. As I have mentioned previously, I believe that we are going to see the US dollar start to strengthen against the Shekel. This will give an added boost to Magal�s numbers. Keep in mind that the 1st quarter has been traditionally the weakest for the company, and the outlook looks promising. In addition, the company forecasted that full year results will be ahead of last years in all respects.
Magal should be looked at not just as a play in the event of a terrorist attack, but on its own merits. Fundamentally, the company has begun executing the business model, and is an intriguing investment for the long term.
(Corrected as of 6/6/07)
Disclosure: Author�s fund is long MAGS as of 6/04/07.
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Aaron Katsman is the lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email email@example.com.
LOL...I tell ya what...why don't you tray and sell your position and see how quick they will drop the bid on even the most miniscule of sells. If you sold 1000 shares of this stock, it would trade at $10.00. THAT IS REALITY.
Hey "BIG GEORGE"...why did you FAIL to leave out the part of that article where the "author" says that MAGS makes BAGGE INSPECTION SYSTEMS? (which they DON'T). Let me refresh you memory a little bit, son...just so people know how full of shyte you are :-)
<<Magal Security Systems (MAGS) is a trailblazer that develops security systems to detect and deter human intrusion for both civilian and military markets. There is a good chance that if you travel, your suitcases have gone through a Magal machine for inspection. But Magal is more than just a company that provides airport security.
Magal specializes in securing all types of sensitive areas, and on Monday announced a $1.8 million deal to help secure the Ashdod Port, as well as a border crossing terminal, both in Israel. Magal is a global company with product installations in over 70 countries, that are protecting borders, airports, prisons, and even nuclear power plants, against both theft, and terrorism...>>