Magic Software Enterprises Ltd. (NDAQ:MGIC) shares jumped 1.25% in early trading after the company announced that it has appointed Eitan Naor as its new President and CEO. Mr. Naor is an experienced turnaround CEO that previously assisted ECtel (NDAQ:ECTX) in its restructuring efforts. ECtel is a small cap telecom fraud prevention and revenue assurance company that fell dramatically between 2002 and 2004. Under his leadership, ECtel turned itself around and experienced nine consecutive quarters of revenue growth and improved financials while the stock priced soared from a low of around $2 per share to a high around $5 per share.

Magic Software is another small cap company that announced a major restructuring plan in the fourth quarter of 2006. Since then, the company has returned to profitability and now hopes that the Mr. Naor can help the company increase its profitability and make a complete turnaround. Given Mr. Naor's success at ECtel, MGIC may be a stock to keep an eye on as they continue forward with their plans.

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