MAGNETEK COM USD0.01 (NASDAQ:MAG)

CAPS Rating: 3 out of 5

The Company is a provider of digital power control systems that are used to control motion and power primarily in material handling, people moving, telecommunications and energy delivery applications.

Recs

2
Player Avatar dragonLZ (99.59) Submitted: 11/6/2010 12:32:39 AM : Outperform Start Price: $11.90 MAG Score: +43.01

Is Magnetek's (MAG) today's 15% move a sign MAG is finally starting to move in the right direction?
I think it's very possible.

MAG fits both my eleven twenty-one and my three-ten criterias. Not 100%, but deserves to be included in my portfolio.

I like the fact that MAG is diversifying and is getting more and more involved in renewable energy.

I copied this from MAG's website:
Magnetek is dedicated to building Engineered Energy® subsystems that deliver conditioned power from renewable energy sources to the utility grid, whether it’s wind turbines, solar panels, fuel cells or hydro power. We don’t think of renewable energy as just a side business—it’s at the heart of our future. We believe it’s our responsibility to contribute to a “greener” world for future generations.

Sounds good to me. Long term green thumb.

Report this Post 6 Replies
Member Avatar pennystockguy (85.00) Submitted: 1/7/2011 6:11:53 PM
Recs: 0

So we meet again!

I like to get in stocks on the early stages of there runs vs. pre-run. Nice catch dragon, I think we breakout into the low 2's, and we'll see how well they execute their renewable energy strategy.

Member Avatar dragonLZ (99.59) Submitted: 1/10/2011 12:06:17 PM
Recs: 0

Hi penny, nice to see you again.
Yeah, I think I made a big mistake not investing in this one in RL.
I think it's a $3 stock at least, possibly $4 and more.
Good Luck, and thanks for stopping by.

Member Avatar pennystockguy (85.00) Submitted: 1/14/2011 4:39:24 PM
Recs: 0

You had no comment on TGE and it came up today on my list. Unfortunately, for these low volume stocks I don't notice them until they cross over 50k average volume. I also rarely buy these stocks unless it is a really bad market and the low volume works for me as people head for the exits. For CAPs purposes I was going to green thumb TGE and I am switching more to a green thumb and hold in 2011 vs what I did in the back half of 2010 when I joined CAPs. I've left well over 1,000 points on the table since I only green thumb and I had about 12 of my picks double in price.

Ok, so anyways I am rambling here, but I was curious as to why you picked these stocks when you did (MAG and TGE). Neither had remarkable volume / price action and there was no news. Are these basically energy plays from a macro view?

I'm more of a bottom up investor than top down. Just curious as to why you made these green thumbs when you did.

Member Avatar dragonLZ (99.59) Submitted: 1/16/2011 3:07:55 PM
Recs: 0

As I said in my pitch, I picked MAG as it somewhat fits my 3-10 and 11-21criterias (both tend to identify big long term winners).
I followed it for a while, and when I got convinced it's slowly moving in the right direction, I picked it for my CAPS portfolio.

TGE, on the other hand, I was just lucky on the timing (it kinda took off right after I green-thumbed it).
I was following this company back in 2005 and 2006 (when it went from $3 to $15), and at that time it was among the top 10 fastest growing companies in U.S.
Then the bottom fell off the oil barrel, and TGE went all the way down to $2.
Recently, when I noticed Oil and Gas stocks heating up, I thought it might be TGE's time again.
And that's how I picked it. There was no science behind it.

I hope this answers your question.
Good Luck and thanks for stopping by.

p.s.
Btw., you also have TGE in your CAPS portfolio... :)

Member Avatar pennystockguy (85.00) Submitted: 1/18/2011 11:38:35 AM
Recs: 0

Got it dragon.

I am always curious to when I see the same names green thumb ahead of me. As I mentioned I normally buy in the early stages of a breakout and so that means someone like you is green thumbing right at breakout or in the non-breakout stage. I like to try to identify what one is seeing and try to incorporate that into my strategy.

I really appreciate your feedback

Member Avatar dragonLZ (99.59) Submitted: 1/18/2011 1:42:15 PM
Recs: 0

No problem penny, I'm glad if I can help.
p.s.
Have you noticed TGC, another Oil and Gas play that I picked last Friday, is up 27% today.
I expect some wild swings on this one (being a penny stock - no pun intended :) ), but it should double if oil price continues to go up.

Good Luck.

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