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Magal Security Systems Ltd. Message Board

  • adeiflig adeiflig Apr 4, 2012 4:38 PM Flag

    1ST QTR results to be STRONG...

    I did a little DD on this company. Mags signed a $ 35 million contract with Africa. In the Q4 quarter revenues jumped from the prior year of $ 15million to $ 33 million on December 31, 2011. Part of that jump was recognizing $ 18 million from Africian contract.

    Given that project was to be completed in January 2012, it reasons that the other $ 15 million from the Africian project will be recognized in the Q1 quarter now. This means another big surprise earnings.

    The India joint venture is big news as MAGS is now expanding into huge market.

    I expect rally to continue as fundamentals are stong and MAGS may acquire some other companies to build it even stronger, adding to eps.

    Conservative outlook:

    27 cents/share * 4 quartes * 15 times earnings is price of $ 16.20 per share, a TRIPLE from here.

    INDIA will add significantly to revenues.

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    • nice post..were u on the call? i missed it and was wondering if they spoke about the backlog (when much would be realized), which is the same as it was last yr at this time...and would u know what the backlog was after q3

      • 1 Reply to mistermaybe
      • The 1st quarter results will be released near end of May 2011, as last year. MAGS had a backlog of $ 50 million in work orders as of December 31, 2011 after booking in huge revenue in Q4, so orders are very strong. This does not include any orders they received during the first quarter which is now and, the pending Indian joint venture which will bring in huge revenues.

        We will continue the rally to new highs as fundamentals keep getting stronger and, it is predicted that Q1 will also be very strong, so no reason to sell.

        JMHO

 
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