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$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
Ho, ho, ho
It's magic, you know
Never believe it's not so
It's magic, you know
Never believe, it's not so
Never been awake
Never seen a day break
Leaning on my pillow in the morning
Lazy day in bed
Music in my head
Crazy music playing in the morning light
Ho, ho, ho
It's magic, you know
Never believe it's not so
It's magic, you know
Never believe, it's not so
I love my sunny day
Dream of far away
Dreaming on my pillow in the morning
Never been awake
Never seen a day break
Leaning on my pillow in the morning light
Ho, ho, ho
It's magic, you know
Never believe it's not so
It's magic, you know
Never believe, it's not so
[Musical Interlude]
Ho, ho, ho
It's magic, you know
Never believe it's not so
It's magic, you know
Never believe, it's not so
The verses above are from a song called “Magic” which hit the airwaves when $$$MR. MARKET$$$ was in high school. Magic topped the charts on WBZ-FM when Captain Ken and Clark spun the waxed platters before there were MP3’s or even CD’s. The funny thing is, this song was at the top of WBZ-FM but it never did much nationally. I think it’s because when you listen to the song, you think they are singing “Ho Ho Ho it’s MY DICK!” which, when heard this way, is somewhat less appealing to most.
What is appealing is that this all went down before anyone knew what a computer was. Now that people use computers, there is a company called Magic Software Enterprises (MGIC), which is topping the NASDAQ charts.
Today I bought MGIC at 7.77. I will sell it in 4 to 6 weeks at 8.96. Here’s why I like MGIC:
Like most stocks that I rave about, it all begins with the chart:
And what a lovely chart it is…even better, I got this one on the dip which I think means it will get to my target faster on retracement.
This stock is up 60% in the last 12 months. It’s cooking with gas. Remember this is a tech company, but it trades at a modest PE multiple of only 18. Most software companies with this kind of growth trade at multiples of 30 or better. MGIC, despite its phenomenal stock price performance, is still being disrespected! What’s up with that?? Wait til they report earnings next week…then they will sees. Oh yes they will sees!
Magic Software Enterprises Ltd. develops, markets, and supports application platforms for software development and deployment, and offers information technology (IT) professional services. The company develops Magic xpa, an application platform for developing and deploying business applications; AppBuilder, an application platform for building, deploying, and maintaining large-scale and custom-built business applications; and Magic xpi, a platform for application integration. It also offers IT professional services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental staffing services. In addition, the company provides annual maintenance contracts; technical support; and training services, as well as consulting services in connection with installation assurance, application audits and performance enhancement, application migration, and application prototyping and design. Magic Software Enterprises Ltd. markets, sells, and supports its products through its branches and global marketing department, a channel-network of independent software vendors (ISVs), system integrators, value-added distributors and resellers, and original equipment manufacturers and consulting partners in approximately 50 countries worldwide. It serves finance, insurance, government, health care, logistics, manufacturing media, retail, and telecommunications industries. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. Magic Software Enterprises Ltd. was founded in 1983 and is headquartered in Or Yehuda, Israel. Magic Software Enterprises Ltd. is a subsidiary of Formula Systems (1985) Ltd.
Magic Software Enterprises empowers customers and partners around the globe with smarter technology that provides a multi-channel user experience of enterprise logic and data. The company's application and integration platforms are known for their code-free approach, allowing users to focus on business logic rather than technology requirements. Creating various software applications is a never-ending process that is improving and becoming more advanced all the time, and as a result, there is a constant challenge to ensure compatibility between platforms. It’s magical.
Their future-proof platforms provide a productive environment for streamlined development and deployment, and effective integration of core business applications, supporting scalable deployment on multiple channels, including on-premise, Web (HTML5), rich Internet, mobile, and SaaS. Using a fresh metadata-driven approach and forward-looking expertise, they deliver products and services that can be deployed with minimal effort, while making the best use of existing assets.
MGIC draws on 30 years of experience, millions of installations worldwide, and strategic alliances with global IT leaders, including IBM, Microsoft, Oracle, Salesforce.com, and SAP, to enable their customers to seamlessly adopt new technologies and maximize business opportunities.
With a presence in more than 50 countries, including 14 regional offices, they collaborate closely with their customers and thousands of business partners to accelerate their business performance.
What does all of this gobbledygook mean? It means earnings, that’s what it means. Earnings earnings earnings.
Financial Highlights for the Third Quarter Ended September 30, 2013
· Revenues for the third quarter increased 9% year over year to $35.6 million from $32.6 million.
· Non-GAAP net income for the third quarter increased 23% to $5.5 million, compared to $4.5 million in the same period last year
Magic sells through thousands of global partners that buy its technology to build business applications for their end customers, which then pay Magic for software licenses. TOUSANDS!
The customer is always right. Let’s listen to them:
"I have used Magic for years to write various business applications. Unlike other technologies, it is future-proof and the learning curve with every new version is less," Jayesh Bhagat, Owner, JayB Solutions Ltd., UK.
"Magic has enabled me, a single developer, to provide systems to companies with sales of $1 million to $1 billion with features and ease of use that other large vendors can't provide," Arch Lineberger, Partner, InControl Systems, USA.
"For over 20 years, Magic Software has allowed us to deliver business applications under time and budget that could not be achieved with any other tool," Alejandro Poznansky, CEO, Generatica S.A., Argentina.
Why do we need Magic in our lives? Today's problem…It is now about MASSIVE integration between MANY systems, platforms and programming languages. The business environment itself is ever CHANGING, technologies, regulations, devices and coding becomes evermore difficult. Integration of the new system with the existing systems is a pure nightmare. MGIC is already in the cloud. The giants are way behind them. MGIC already has more than 200 cloud projects in production.
By 2013, more than 1.19B workers worldwide will be using mobile technology, accounting for 34.9% of the workforce. By 2014, mobile Internet users will outnumber desktop Internet users. Where is MGIC in this? You guessed it. MGIC is on mobile like flies on dog poo.
Tremendous growth, right? Not only that, this stock pays a 2.2% dividend. Can’t lose…CAN’T LOSE if you invest in MGIC. You get paid all kinds of different ways.
Revenues for the first nine months of 2013 increased 14% to $103.8 million compared to $90.7 million in the same period last year.
Some other MAGIC bullets:
So why does $$$MR. MARKET$$$ believe in Magic?
· Impressive Financial Performance
· Increasing revenues and net income
· Sustained and rising profitability
· Strong cash position with zero debt and a healthy cash balance
· Commitment to Growth
· Strengthening presence in many regional markets around the world
· Growing community of users through social media and online collaboration forums
· Strong Leadership and Corporate Vision
· Close collaboration with customers to enhance and accelerate business performance
· Exceptional product offering, including robust and versatile platforms for developing, deploying, and integrating enterprise-class applications
· Highly scalable and future-proof technology that maximizes market opportunities
· Global Industry Recognition
· Over 25 years of experience in the software industry
· Millions of successful installations worldwide
· Global network of thousands of business partners
· Listed in the NASDAQ Global Select Market and the SD Times Top 100 Innovators and Leaders
Dare I axe what the ANAL-ysts think? Sure, I could use a chuckle. Actually the ANAL-ysts have abdicated this stock because they don’t get the Cliff Notes and don’t want to look stupid. They shouldn’t worry about looking stupid. They didn’t go to WHARTON like $$$MR. MARKET$$$ did, so basically they are all faceful.
Here’s an earnings chart….you can be the ANAL-yst. Are revenues going up…or down? Are earnings going UP….or down?
Year Revenues, MM EPS
2012 $126 $0.44
2011 $113 $0.41
2010 $ 89 $0.29
2009 $ 55 $0.19
Simple….isn’t it?
MGIC has almost $2.00/share in cash on its books.
2013 earnings are in the can and they are fine. I project 2014 earnings to be $0.55/share on revenues of $185 million. If you use the existing very modest PE of 18 and multiply it by these earnings of $0.55/share, you get a stock price of 18 x $0.55 = $9.90 which is well past my selling target.
I used to work for a guy named Alan Bernstein. He was brilliant, but more importantly was very funny. The guy who runs MGIC is Guy Bernstein. He’s not very funny, but I think he’s brilliant. Here’s what he had to say:
Guy Bernstein, Chief Executive Officer of Magic Software Enterprises, said, "We are pleased to report another record quarter with strong year-over-year growth across all areas of our business and all regions. We are seeing great interest in the recent enhancements we have made to enrich our enterprise mobility, integration and services offerings. We are committed to maximizing our opportunities by continuing to strengthen our positions in these growth markets now and in the years to come."
Well…I am on board with this Guy and I think with this investment I made in MGIC, I won’t be left holding “my dick”.
I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
Ho, ho, ho
It's magic, you know
Never believe it's not so
It's magic, you know
Never believe, it's not so
Never been awake
Never seen a day break
Leaning on my pillow in the morning
Lazy day in bed
Music in my head
Crazy music playing in the morning light
Ho, ho, ho
It's magic, you know
Never believe it's not so
It's magic, you know
Never believe, it's not so
I love my sunny day
Dream of far away
Dreaming on my pillow in the morning
Never been awake
Never seen a day break
Leaning on my pillow in the morning light
Ho, ho, ho
It's magic, you know
Never believe it's not so
It's magic, you know
Never believe, it's not so
[Musical Interlude]
Ho, ho, ho
It's magic, you know
Never believe it's not so
It's magic, you know
Never believe, it's not so
The verses above are from a song called “Magic” which hit the airwaves when $$$MR. MARKET$$$ was in high school. Magic topped the charts on WBZ-FM when Captain Ken and Clark spun the waxed platters before there were MP3’s or even CD’s. The funny thing is, this song was at the top of WBZ-FM but it never did much nationally. I think it’s because when you listen to the song, you think they are singing “Ho Ho Ho it’s MY DICK!” which, when heard this way, is somewhat less appealing to most.
What is appealing is that this all went down before anyone knew what a computer was. Now that people use computers, there is a company called Magic Software Enterprises (MGIC), which is topping the NASDAQ charts.
Today I bought MGIC at 7.77. I will sell it in 4 to 6 weeks at 8.96. Here’s why I like MGIC:
Like most stocks that I rave about, it all begins with the chart:
And what a lovely chart it is…even better, I got this one on the dip which I think means it will get to my target faster on retracement.
This stock is up 60% in the last 12 months. It’s cooking with gas. Remember this is a tech company, but it trades at a modest PE multiple of only 18. Most software companies with this kind of growth trade at multiples of 30 or better. MGIC, despite its phenomenal stock price performance, is still being disrespected! What’s up with that?? Wait til they report earnings next week…then they will sees. Oh yes they will sees!
Magic Software Enterprises Ltd. develops, markets, and supports application platforms for software development and deployment, and offers information technology (IT) professional services. The company develops Magic xpa, an application platform for developing and deploying business applications; AppBuilder, an application platform for building, deploying, and maintaining large-scale and custom-built business applications; and Magic xpi, a platform for application integration. It also offers IT professional services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental staffing services. In addition, the company provides annual maintenance contracts; technical support; and training services, as well as consulting services in connection with installation assurance, application audits and performance enhancement, application migration, and application prototyping and design. Magic Software Enterprises Ltd. markets, sells, and supports its products through its branches and global marketing department, a channel-network of independent software vendors (ISVs), system integrators, value-added distributors and resellers, and original equipment manufacturers and consulting partners in approximately 50 countries worldwide. It serves finance, insurance, government, health care, logistics, manufacturing media, retail, and telecommunications industries. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. Magic Software Enterprises Ltd. was founded in 1983 and is headquartered in Or Yehuda, Israel. Magic Software Enterprises Ltd. is a subsidiary of Formula Systems (1985) Ltd.
Magic Software Enterprises empowers customers and partners around the globe with smarter technology that provides a multi-channel user experience of enterprise logic and data. The company's application and integration platforms are known for their code-free approach, allowing users to focus on business logic rather than technology requirements. Creating various software applications is a never-ending process that is improving and becoming more advanced all the time, and as a result, there is a constant challenge to ensure compatibility between platforms. It’s magical.
Their future-proof platforms provide a productive environment for streamlined development and deployment, and effective integration of core business applications, supporting scalable deployment on multiple channels, including on-premise, Web (HTML5), rich Internet, mobile, and SaaS. Using a fresh metadata-driven approach and forward-looking expertise, they deliver products and services that can be deployed with minimal effort, while making the best use of existing assets.
MGIC draws on 30 years of experience, millions of installations worldwide, and strategic alliances with global IT leaders, including IBM, Microsoft, Oracle, Salesforce.com, and SAP, to enable their customers to seamlessly adopt new technologies and maximize business opportunities.
With a presence in more than 50 countries, including 14 regional offices, they collaborate closely with their customers and thousands of business partners to accelerate their business performance.
What does all of this gobbledygook mean? It means earnings, that’s what it means. Earnings earnings earnings.
Financial Highlights for the Third Quarter Ended September 30, 2013
· Revenues for the third quarter increased 9% year over year to $35.6 million from $32.6 million.
· Non-GAAP net income for the third quarter increased 23% to $5.5 million, compared to $4.5 million in the same period last year
Magic sells through thousands of global partners that buy its technology to build business applications for their end customers, which then pay Magic for software licenses. TOUSANDS!
The customer is always right. Let’s listen to them:
"I have used Magic for years to write various business applications. Unlike other technologies, it is future-proof and the learning curve with every new version is less," Jayesh Bhagat, Owner, JayB Solutions Ltd., UK.
"Magic has enabled me, a single developer, to provide systems to companies with sales of $1 million to $1 billion with features and ease of use that other large vendors can't provide," Arch Lineberger, Partner, InControl Systems, USA.
"For over 20 years, Magic Software has allowed us to deliver business applications under time and budget that could not be achieved with any other tool," Alejandro Poznansky, CEO, Generatica S.A., Argentina.
Why do we need Magic in our lives? Today's problem…It is now about MASSIVE integration between MANY systems, platforms and programming languages. The business environment itself is ever CHANGING, technologies, regulations, devices and coding becomes evermore difficult. Integration of the new system with the existing systems is a pure nightmare. MGIC is already in the cloud. The giants are way behind them. MGIC already has more than 200 cloud projects in production.
By 2013, more than 1.19B workers worldwide will be using mobile technology, accounting for 34.9% of the workforce. By 2014, mobile Internet users will outnumber desktop Internet users. Where is MGIC in this? You guessed it. MGIC is on mobile like flies on dog poo.
Tremendous growth, right? Not only that, this stock pays a 2.2% dividend. Can’t lose…CAN’T LOSE if you invest in MGIC. You get paid all kinds of different ways.
Revenues for the first nine months of 2013 increased 14% to $103.8 million compared to $90.7 million in the same period last year.
Some other MAGIC bullets:
- Profit Margin (Trailing Twelve Months) 11 %
- Return on Assets (Trailing Twelve Months) 7%
- Return on Equity (Trailing Twelve Months) 14%
- Revenue per share (Trailing Twelve Months) $3.79
- MGIC has a current price-to-book value of 2.3x with yoy earnings per share of $0.42.
- It is trading above both its 200-day moving average of $6.78 and its 50-day moving average of $7.67. That indicates a short-term, mid-term and long-term uptrend.
- The company has reported positive earnings each quarter since 2007.
- Magic Software Enterprises has seen a steady increase in revenues over the past several years; $55 million in 09, $89 million in 2010, $113 million in 2011, and $126 million in 2012. Magic Software has no debt at all.
So why does $$$MR. MARKET$$$ believe in Magic?
· Impressive Financial Performance
· Increasing revenues and net income
· Sustained and rising profitability
· Strong cash position with zero debt and a healthy cash balance
· Commitment to Growth
· Strengthening presence in many regional markets around the world
· Growing community of users through social media and online collaboration forums
· Strong Leadership and Corporate Vision
· Close collaboration with customers to enhance and accelerate business performance
· Exceptional product offering, including robust and versatile platforms for developing, deploying, and integrating enterprise-class applications
· Highly scalable and future-proof technology that maximizes market opportunities
· Global Industry Recognition
· Over 25 years of experience in the software industry
· Millions of successful installations worldwide
· Global network of thousands of business partners
· Listed in the NASDAQ Global Select Market and the SD Times Top 100 Innovators and Leaders
Dare I axe what the ANAL-ysts think? Sure, I could use a chuckle. Actually the ANAL-ysts have abdicated this stock because they don’t get the Cliff Notes and don’t want to look stupid. They shouldn’t worry about looking stupid. They didn’t go to WHARTON like $$$MR. MARKET$$$ did, so basically they are all faceful.
Here’s an earnings chart….you can be the ANAL-yst. Are revenues going up…or down? Are earnings going UP….or down?
Year Revenues, MM EPS
2012 $126 $0.44
2011 $113 $0.41
2010 $ 89 $0.29
2009 $ 55 $0.19
Simple….isn’t it?
MGIC has almost $2.00/share in cash on its books.
2013 earnings are in the can and they are fine. I project 2014 earnings to be $0.55/share on revenues of $185 million. If you use the existing very modest PE of 18 and multiply it by these earnings of $0.55/share, you get a stock price of 18 x $0.55 = $9.90 which is well past my selling target.
I used to work for a guy named Alan Bernstein. He was brilliant, but more importantly was very funny. The guy who runs MGIC is Guy Bernstein. He’s not very funny, but I think he’s brilliant. Here’s what he had to say:
Guy Bernstein, Chief Executive Officer of Magic Software Enterprises, said, "We are pleased to report another record quarter with strong year-over-year growth across all areas of our business and all regions. We are seeing great interest in the recent enhancements we have made to enrich our enterprise mobility, integration and services offerings. We are committed to maximizing our opportunities by continuing to strengthen our positions in these growth markets now and in the years to come."
Well…I am on board with this Guy and I think with this investment I made in MGIC, I won’t be left holding “my dick”.
I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
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