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Magal Security Systems Ltd. Message Board

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  • r3ady4you r3ady4you May 30, 2012 6:37 PM Flag


    Again, someone please refute this if they mentioned it on the call, but MAGS had $5.6 million coming this Q on the gravy train for work already completed for the Africa Cup. This was a turnkey project, not a high margin perimeter project that is the renewable type business that MAGS shoots for. It accounted for over 30% of last year's revs. So, if you back this out, you can see that the trend for revenues might be decreasing as a year over year basis. This was put in play today. I understand MAGS has a lot going for it but financial expenses increased when revenues that we 'couldn't quantify' decreased. It was a major downside surprise to me and that's why I sold at the opening bell.

    This is far from a slam dunk. There is a high level or risk reward here despite the strong balance sheet. It may very well double from here but the growth trajectory was put into question today with that report. You may not like me but I'm telling you why the action looked the way it did today. I'll try to listen to the replay and give you more of my thoughts if you would like.

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    • alright, back out 35m in rev from the 88.6 they made for 2011, that's 53.6 rev left. they had 9.8 net profit on 88.6 rev which is about 11%. multiply 11% (all things being equal) and 53.6 rev, you get 5.896 in net profit. divide 5.896 by 15.83 os and you get .372 earnings for the year. what p/e do you want to apply? according to yahoo the industry p/e is 20. at todays close of $3.80 and estimate .372 as 2012 earnings going forward the p/e is 10. i believe they will post .64 in earnings for 2012 with a p/e of 12-20, thats $7.68-$12.80 and i believe that to be conservative. the 2011 q3 earnings of .61 will be tough to beat imho but they should beat q2 of .01. lets see if they can grow the company, its obvious thats why they teamed up with veecon of india, otherwise mags will languish

4.63+0.04(+0.87%)Oct 21 3:46 PMEDT