It seems the stock is holding up well against a falling market. Is this out of fear of new terror on the 9/11 anniversary? Or just an overall feeling that more security and defense technology will be needed?
Fibonacci anyone? I think it's a sell at 8.75 to 8.95.
That's absurd. Baby boomers aren't going to pull out all their money upon retiring and stick it in CDs. Life expectancies are too long. You can't count on 30 years of comfortable retirement while getting a 3% return on your money.
>>Sold today at 8.92 - no idea where we go >>from here, but the lack of volume seems to >>say there are few buyers at this level.
Yes, but the same can be said for the lack of sellers at this level. The next big upward move for MAGS is around the release of the quarterly results. It may start a little earlier due to anticipation.
If the overall market does well, there are safer places to put money to work than a microcap such as MAGS. This is my take as a typical investor/gambler. In the recent days, the market is having some serious doubts about this "jobless recovery." As a result, money flows back to stocks whose patterns are not correlated with the major averages. MAGS is one of those.
I speculate that we are going to have a major correction soon. There's no such thing as a "jobless recovery." If the economy is not producing jobs, than it is not really recovering. The euphoria over the quick Iraq victory has quickly evaporated and replaced with concern. The cost of the war ($87B) is larger than expected and will deepen the deficit. All these should serve as a warning sign for the bulls.
As far as MAGS go, I buy on regular intervals with equal amounts of money and ignore all technical indicators. The big picture is that the world is getting less and less safe.
I think security is a growing industry as people in general realize that we can no longer expect everyone to not be totally maniacal (obvious case in point muslim terrorists). The sensor technology that is being developed for chemicals, light, vibrations, and radiation, and all the upcoming memory and display technology (nano-technology, OLED etc.) will help enable us to fulfill our most primary need of safety. So I argue that the price is not just the fickle fruit of an electronic herd, but maybe there are fundamental positives that are attracting interest such that made Magal the microcap pick of Barrons Weekly only a few weeks ago. It is a new and growing industry that Magal can profit from greatly if it stays on top of the new technologies and focuses on where the money is.