MGZ will boom, but we will have to wait till later in the year. Good one to accum at the moment for the middle draw. It's been supported at the 18-20 range no matter what the sell side looks like, so seems a safe buy at the moment even with a weak buy side. If it slides into the 15-17 cent range momentarily... it's an excellent opportune buy.
When manufacturing deals get struck later this year for 2005 production start up, Equity Research shops will be pumping out spec buy alerts based on forecast production runs... so we will see the stock price lifted back up into the 40 cent plus range, based on expected late 2005 earnings. How far in advance of this level will be subject to three things, 1. number and geographic location of production Licence deals (namely USA) and any upfront licensing fees, 2. Medical compliance laws for safe blood collection devices being implemented in the other 25 states in the US and 3. Stated or forecast production units to be manufactured by Licensees.
“IF” MGZ’s three moving part vacuum technology really becomes an industry slayer, licensing fees and fees per unit will reap them massive profits and certainly very high dividends for holders in 2006. Based on a few runs on the my $5 calculator, it’s not science fiction to see the share price heading over $10 in 2006. But it’s still all a big IF. Certainly the opportunity exists.
Anyway.... just a few humble thoughts. Read this weeks report from MGZ for your own analysis.
MGZ Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
