Zacks.com Announces That Gregory Spear Highlights the Following Stocks: Crucell and Magal Security.

Business Editors

CHICAGO--(BUSINESS WIRE)--March 31, 2004

Even though the market continues its struggle, there are always a handful of companies that rise to the top. Gregory Spear highlights a pair of such stocks in the security sector, which have recently rocketed to the top of his A-List. Read about Crucell (NASDAQ:CRXL) and Magal Security (NASDAQ:MAGS). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84

Here are the highlights from the Featured Expert column:

Even as security fears rise, security stocks as a group are not outperforming. Why? When markets correct after a long period of bullishness there is, so to speak, a fair amount of "foam" on the beer. As bull markets progress, the rising tide lifts virtually all boats, somewhat regardless of merit. Even those stocks with merit may also be taken too far, too fast. Therefore, early on in the corrective phase, there is a fairly rapid compression of valuation. The strongest stocks have the most resilience and a corrective period is the test of that.

Crucell (NASDAQ:CRXL) was recently awarded a grant by the Aeras Global TB Vaccine Foundation to improve the current TB Vaccine. While TB is not a bioweapon, the grant, which comes from the Bill & Melinda Gates Foundation, is just another feather in Crucell's cap and further validation of their leadership position in advanced vaccine technology. As many biotechs are attempting to do, CRXL is making the difficult transition from a research and technology-focused organization to a viable product-producing concern. Their goal is to take proprietary drug candidates through clinical trails and into the marketplace. Given their technology, financing and alliances, CRXL appears to Gregory Spear to be the most viable of all the small-cap biotechs with an interest in biodefense.

With the situation heating up once again in Israel, Magal Security (NASDAQ:MAGS), an Israeli-based security organization, is suddenly in the spotlight. The company is another "undiscovered" security stock that has been quietly expanding its footprint, particularly since 9/11. Their products are currently used in more than 70 countries worldwide to protect national borders, airports, correctional facilities, nuclear power stations and other sensitive facilities from terrorism, theft and other threats. The company is investing heavily in R&D (research and development) and Spear likes that. They recently announced the launch of a new patent-pending pipeline security system, known as PipeGuard, to protect oil and gas pipelines and buried communication infrastructure.

Last year was a record year for Magal, both in revenues and operating income. The company is selling for less than 2X trailing 12-month revenues, which were $59.4 million for fiscal year 2003, up 38%, with net income of $2.4 million, up 27% year-over-year. We can expect quite a bit of volatility in this "newly discovered" security name. Nevertheless, Spear is hanging on as the volume and price pattern suggests this multi-year breakout will be successful and MAGS will double in 2004.

Learn much more about these two companies, and read Gregory Spear's complete commentary with another stock profile by clicking: http://at.zacks.com/?id=85

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