Mellanox Technologies to List in Tel-Aviv
Written by: Aaron Katsman | July 2, 2007
By Aaron Katsman
www.IsraelNewsletter.com
Mellanox Technologies, a leading supplier of semiconductor-based, high-performance, InfiniBand and Ethernet connectivity products that facilitate data transmission between servers, communications infrastructure equipment and storage systems, announced their intention to list on the Tel Aviv stock exchange. Becoming a dually listed company has one main benefit for the company. It allows local Israeli institutional investors the ability to trade in the stock, something that may be prohibited if the stock only trades in the US. This trend to dually list has produced handsome returns for investors in other companies. From Silicom(SILC) to the recent dual listing of Cellcom (CEL), leading up to and immediately after the listing in Tel Aviv, the stock usually makes a nice run in the US.
Keep in mind Mellanox went public in February, which means that they will be coming out of a lockup in early August, which could pressure the stock as insiders look to lock-in profits and take some money off the table. The company has not announced when they plan on dual listing.
Keep an eye on Mellanox as a very interesting trading opportunity.
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Disclosure: Author does not hold positions in any of the companies listed.
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.
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