Market Overview

Benzinga's Microcap Movers for Wednesday April 4, 2012


Below are highlights from Benzinga's daily coverage of microcap securities making big moves:

Magal Security Systems

Shares of Magal Security Systems (NASDAQ: MAGS), the Israel-based manufacturer of computerized security systems, rose 19% Wednesday on 46 times the average daily volume.

Magal announced Wednesday its financial results for the three and twelve month period ended December 31, 2011. Revenues in the fourth quarter of 2011 increased year-over-year by 122.9% to a record $33.7 million, compared with $15.1 million in the fourth quarter of 2010.

Gross profit in the quarter was $15.4 million, or 45.8% of revenues, an increase of 174.8% compared to gross profit of $5.6 million, or 37.1% of revenues, in the fourth quarter of 2010.

Operating profit in the quarter was $5.0 million, or 14.8% of revenues, compared to an operating loss of $0.6 million in the fourth quarter of 2010.

Financial expenses in the quarter amounted to $73,000 compared to financial expenses of $405,000 in the fourth quarter of 2010. Tax expenses in the quarter were $668,000, compared with $556,000 in the fourth quarter of 2010.

Net income in the quarter was $4.3 million, compared with a net loss of $1.5 million in the fourth quarter of 2010.

Earnings per share in the fourth quarter of 2011 were $0.27, compared with a net loss per share of $0.14 in the same period last year.

Magal Security Systems, closed at $5.43 on Wednesday.


Shares of SmartHeat (NASDAQ: HEAT), the manufacturer and seller of plate heat exchangers in the Peoples Republic of China, rose another 46% on Wednesday, following a 91% rise on Tuesday.

SmartHeat said Wednesday that while it ordinarily does not comment on market activity or market rumors, in view of the recent unusual market activity in its stock, SmartHeat confirms that it is not aware of any material corporate developments that could account for the unusual trading activity.

SmartHeat closed at $7.68 on Wednesday, trading as high as $9.64 intraday.


Shares of Dynegy (NYSE: DYN), the Houston, TX electric energy company, fell 24% Wednesday on 4 times the average daily volume.

Dynegy announced Wednesday that it has reached an agreement in principle with creditors holding over $2.5 billion of claims against Dynegy's subsidiary, Dynegy Holdings, LLC. The agreement in principle contemplates the resolution of all disputes, claims and causes of action between DH and Dynegy. The terms of the agreement in principle will be implemented through a settlement agreement to be filed in DH's Chapter 11 case, and in amendments to DH's Chapter 11 plan, which would be subject to a formal creditor vote and confirmation by the bankruptcy court.

Under the agreement in principle, DH's unsecured creditors would receive common equity in the reorganized company in lieu of the new senior secured notes and preferred stock contemplated by the current plan; the cash to be distributed to creditors under the revised plan would be reduced to $200 million; and all disputes relating to the Roseton and Danskammer leases would be resolved by awarding US Bank, as trustee for the trust certificates issued in connection with the leases (the Lease Notes), a fixed allowed unsecured claim. Parties to the proposed agreement include an ad hoc group of holders of DH's senior notes, PSEG, US Bank and certain holders of the Lease Notes. The agreement in principle does not include any holders of DH's $200 million of subordinated capital income securities due 2027 (the Subordinated Notes).

Dynegy closed at $0.39 on Wednesday.

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