Written by: Aaron Katsman | June 25, 2007
By Aaron Katsman
www.IsraelNewsletter.com
I have gotten a ton of emails and phone calls asking for an explanation of the controlling shareholders’ selling 45% of their holding in G. Willi-Food parent company to Arcadi Gaydamak. The deal was at a 70% premium to the previous close of the stock on Tel Aviv trading. What is interesting to note is the Israeli investing public’s skepticism as to whether this deal will go through. The stock has moved up 23% since the announcement, a far cry from the 70% premium. The reason is that Gaydamak has been on a shopping spree, buying up one publicly traded company after an another. But last week, after announcing the acquisition of another food company Tiv Taam, also with a similar huge premium, the deal quickly broke apart and the stock which had jumped, dropped back just as fast. Keep in mind that WILC which trades in the US is a subsidiary and that is why it has not made the same strong upwards move, though it has been moving up nicely for a long time.
The deal, if it is completed, should be a big help to WILC. Gaydamak, the Russian billionaire, has extensive contacts in the food business in Russia and throughout Africa, opening new markets for G. Willi to sell. This goes along with our view that the Kosher food business has turned into a very attractive market. This move keeps with our opinion that WILC is a very interesting long term play in the kosher food business.
Please see our Disclaimer HERE.
Disclosure: Author’s fund is long WILC as of 6/25/07.
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Aaron Katsman is the lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
Written by: Zack Miller | June 25, 2007
Globes story that Google Israel is showing some legs. Sources say that Keshet Television, One, Bizportal, and Heep are among the sites that the Google AdSense team has added to the Israeli ad network. These same sources say that “in the first half of 2007, Google Israel’s revenue reached $25 million, an amount identical to its revenue for all of 2006. It is estimated that Google Israel’s revenue will reach $45-50 million by year’s end.” Globes says that the rise in income seems to be attributed to growth in new advertising campaigns outside the traditional pay-for-click, including offline and branding campaigns.
Tech guru, George Gilder, was in Israel doing some diligence on his favorite Israeli company, EZChip, a subsidiary of LanOptics (LNOP). Says Gilder about why he likes EZChip, ” It is both a network-based technology that can be scaled. You can build on it and expand it. This is important in an era of constant change, and it also solves the time problem.”
Citibank out on Israel indirectly in a new research report on the region. Citing, earnings yield rations and very low interest rates, Citibank is overweight on Israeli equities. In particular, they like TEVA (TEVA), Bank Leumi, and Bank Hapoalim.
Japanese company, Internix, announced that it will be investing between $30 and $40MM in Israeli semiconductor firms. Each investment will average around $5MM. The semiconductor distribution firm maintains offices in Silicon Valley and represents about 2000 companies in Japan, including NEC, Fujitsu, OKI, Toshiba, Panasonic, Sharp and Sanyo.
Elbit Vision Systems (EVSNF.OB) hitting up investors for a $5MM+ private round. Elbit Vision develops and produces automatic in-line optical web inspection and quality monitoring systems for improving production efficacy and product quality.
Written by: Zack Miller | June 24, 2007
NICE (NICE) in talks to buy Actimize for a reported $280MM. Actimize provides enterprise-wide software solutions for brokerage compliance, anti-money laundering, and fraud prevention. Actimize competes with ECtel (ECTX). Read what we’ve said about HP’s intentions to get into this market via an ECTX acquisition.
Arkady Gaydamak buys corporate parent of IsraelNewsletter favorite, Willi Food (WILC). Reuters has the story. Willi Food is selling a 45% stake to the billionaire and traded up 30% in Israeli trading on Sunday (note: Gaydamak is buying the parent company Willi Foods of which WILC is a subsidiary). We’re following the so-called Gaydamak Index closely…
Cramer bullish on Given Imaging (GIVN). Given Imaging has a product that could revolutionize the health care industry, Jim Cramer told viewers of his “Mad Money” TV show on Speculation Friday. Cramer likes the PillCam product, a “camera in a pill”, which he thinks should start generating revenues a couple of years out. IsraelNewsletter.com’s Aaron Katsman has written positively on Given. Read his thesis here.
Written by: Israel Investor Newsletter | June 22, 2007
Douglas Goldstein, CFP
www. IsraelNewsletter.com
When I used to live in the United States, there were great ads on the radio for LoJack (LOJN). LoJack had this technology that allowed them to quickly find stolen cars. Then, when I moved to Israel, I met Ituran (ITRN), LoJack’s international competitor.
Three hundred million dollar Israel-based Ituran, which trades on Nasdaq, sells high-tech tracking and location systems through locations and partners in the U.S., South America, the Middle East, and the Far East. (Check out their cool video here to see the system in action.)
The Motley Fool community gave the stock a 5-star rating this week, considering it a real value play (they write about the stock right next to a discussion of Benjamin Graham’s The Intelligent Investor). And Stockerblog flagged the company as one of the few Israeli dividend-payers, and, said it was worth looking into.
With James Bond-like tracking devices, this family-run business certainly deserves some attention. Be aware, though, that having a father and sons run a business can sometimes create unknown conflicts of interest, and even though the company has been noted as paying a dividend, it’s small, and it could be cut anytime. However, though it is smaller than its main competitor LoJack (~$300 million vs. ~$420 million), it has almost the same net income ($19 million) and trades at a P/E of 15.50 (vs. LoJack’s 22.7).
The stock looks like a good play; but if you’re not a risk-taker, consider installing Ituran in your car. Using their vehicle tracking service is like buying a put option on your auto stock.
*****
Disclosure: Author’s fund is long Ituran as of 6/22/07, but does not own any of the other companies mentioned herein.
Please see our Disclaimer HERE.
Douglas Goldstein is the Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email doug@profile-financial.com.
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