Magal: Speculative Bet on Border Fences

Focus: GLOBAL

Jim Powell Image Jim Powell Principal Analyst, Global Changes & Opportunities

For investors who may wish to make a more speculative investment, I have a company that could profit handsomely from one of President Trump's biggest promises: to build a wall between the US and Mexico, notes Jim Powell, editor of Global Changes & Opportunities Report.

Magal Security Systems (MAGS) is an Israeli company whose stock trades in the US. The company specializes in "smart fences" that protect large geographic areas, power plants, military bases, prisons, and building complexes against unwanted intrusions.

Magal constructed the controversial high security fence that runs alongside and through the occupied West Bank and East Jerusalem. The company also built the barrier along the Gaza Strip border.

A Magal fence on Israel's southern border with Egypt cut the flow of African refugees and economic migrants to a trickle since it was built in 2013.

Getting through a Magal fence undetected would be almost impossible. The fence includes vibration detectors, microwave motion sensors, facial recognition systems, and a mobile "RoboGuard" that whizzes back and forth along the top.

Best of all, a Magal fence is less expensive than building a wall, and can be more effective.

Magal is more speculative than my other recommendations this month for two reasons: First, there is still considerable doubt about the president's ability to build his wall.

Secondly, Magal's stock is already moving up. However, if the company gets some good publicity regarding the border wall, today's price will seem cheap. Please remember, we caution that Magal must be considered a speculation.

Subscribe to Global Changes & Opportunities Report here.