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công ty Magal Security Systems Message Board

  • Smokeskull Smokeskull Dec 26, 1998 2:31 PM Flag

    Reasons to dump this stock....

    I know I will get flak for this, but I took a
    look at this one and several red flags went
    up.

    1. This company is not reporting properly to the
    SEC. I can not find any of it's required filings
    anywhere. This being the case, the NASDAQ can delist them
    at any time and stick them on the OTC BB where it
    seems that they belong. Aside from that, it is really
    unprofessional.

    2. Questionable insider buying. The lack of required
    filings also indicates that there is no way to check and
    see if insiders are actually buying. They are not
    doing the proper documentation. In a deeds not words
    world this means as far as I can tell they are talking
    out their asses. It also means they could just as
    easily be dumping this stock and no one would know
    because they are not doing the proper filings. The fact
    that these guys announced in a press release that they
    were buying instead of just doing the proper paper
    work is also suspect, and leads one to believe that
    they were trying to hype the stock.

    3. CNBC
    hype. Someone is just trying to get out of a bad
    position. Whoever said anything on CNBC about this stock
    just wanted out. The aftermath of CNBC hype on a
    backwater company is always PAIN.

    4. The stock is
    foreign. Good luck trying to collect on damages if some
    real discrepencies start to crop up, or even doing any
    real DD.

    5. There is no interest in this stock
    at all. It has one analyst covering it with a hold
    and only a 10% institutional interest. No one will
    ever be interested in this stock either because there
    is no real information out on it.

    6.
    Questionable dividends. If this company was planning to pay
    dividends it would have just done it. The delay involved is
    just another red flag.

    7. Poor technicals. This
    stock has never done anything but go down. Every move
    up is met with someone dumping all over it. This is
    not a good situation. If the MM's are intent on
    killing this stock it will never go anywhere.

    That
    is my .02. I was as fair as I could be in looking at
    this stock. I actually intended to buy it at first.
    But, there are just too many red flags and
    questionable practices taking place. Possibly in your own mind
    you can find fault with a few of my points, but they
    all seem fair to me. I'd sell and wait for this
    company to at least start making the proper filings with
    the SEC.

    I hope this doesn't offend.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • GOOD NEWS !!!
      hay you never know.

    • Bottom line: Your insticts are true.
      Counter-terrorism is like a fire and there's only one animal in the
      animal kingdom that has the instinct to go out of its
      way to put out a fire. It ain't a human. Ask yourself
      this question: At what point has the stock had a bad
      enough beating for us to feel better about putting our
      money on it? Instinctively the answer is 'never' but
      greed tells me its time to buy this puppy.

      Is
      the stock down because of the lack of SEC filings or
      are investors only now taking that into
      consideration? I see it as an opportunity. BTW, there are BB
      stocks that go for $40/share so delisting isn't the
      death penalty.

      I don't recall any CNBC hype,
      though Magal WAS the number one defense issue percentage
      gainer during the Desert Fox attack of Iraq, as reported
      in the Dow Wire. We have our MexicoJoe hype from
      time to time but since October, we've been finding
      real price support reminiscent of early
      1996.

      It HAS paid dividends as little as three years ago
      ($1.05, in December 1995). If you want to base dividends
      on earnings, why not wait until the traditionally
      big 4thQ is over? (at least in the prior two years)
      Our analyst is projecting $.10 for the
      4Q.

      Accountants are responsible for doing the books. Magal brings
      in outside accountants just like everyone else.
      While this doesn't assure a perfect 10Q or 10K, it does
      mean that they're looking at the financials with their
      own reputation on the line.

      Magal is expanding
      rapidly vis a vis purchasing other companies. It isn't an
      easily understood business. If it was easy creating a
      fictitious company with a PE < 10, why isn't everyone
      doing it? Maybe that's one you can answer.

      WH

      • 2 Replies to dontforgetlogin
      • I've seen this kind of thing before. A lot of
        people ARE doing it. It's always a foreign stock. It is
        always priced to good to be true. There are always a lot
        of promises being made. There is never any evidence
        of any follow through on the promises.

        I
        don't want to be put in the position of being the board
        asshole who throws cold water on everyones party. I'm not
        going to argue a negative position non-stop. My last
        posting speaks for itself. This company is doing nothing
        through the proper channels or using the proper
        procedures. Either that makes perfect sense to you as a
        reason to get out quick or it doesn't.

        If the
        company were to start reporting it's activities in the
        proper fashion with the SEC and becoming more
        transparent I would likely be a buyer myself. But, I'm not
        touching this company with a ten foot pole until it does.
        I want to see proof of insider buying, mergers, and
        quarterlies reported according to SEC standards. There is
        absolutely no excuse for the company not to follow the rules
        if it is legit. And, if they make an excuse for not
        reporting properly, you better really start
        running.

        That's all I'm saying on the issue.

      • eom

 
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