Hi everybody. I just became long on Magal. Here are 3 reasons why: 1. A peace treaty with either Syria or the Palestinians will require a border fence. Magal one all previous contracts with the army for the fence across Israel�s borders, and it has excellent chances for the new contracts. This could easily double the company�s revenues in 2001. 2. A move into direct contracting in Eastern Europe will provide the company additional 20% growth over it�s 10% internal annually growth in 2000. 3. Even without the upside the company is fundamentally cheep with P/E of 10 for 2000. IMHO. Go MAGS!
Looks like a purely technical move to me -- i.e., MMs trying to clear out some shaky longs prior to taking the stock back up again? In any case, it looks like a nice technical tail now in retrospect, with the ultimate upside close being bullish for the near future rather than bearish.
Ouigi71 -- thanks for your post. Just became long MAGS again myself, after having bought and sold MAGS(F) at a profit a couple of years ago. Right now, MAGS is really a good one to just tuck away and forget about. It's truly a value + growth story. In addition, it now has a potential extra "hype" factor of being involved in the internet security business, assuming that they do indeed get involved in that per one of their recent announcements. In the past, I've liked to trade out of MAGS during terrorist events, when the stock would always rise 25-50% on the day of those events, only to slowly fall back to the trading range from which it came (when I'd usually get back in). However, this time, I'm seeing more of a secular growth story, so I'm going to be holding most if not all of my shares for the long term.