3 Hot Israeli Stocks to Put Sizzle in Your Summer
Written by: Aaron Katsman | July 13, 2007
By Aaron Katsman
www.IsraelNewsletter.com
As the temperature approaches 100 degrees (it’s not global warming, it’s just what happens in the summer), here are three Israeli stocks that are sure to heat up your portfolio even more.
Commtouch (CTCH), the email defense company, has started the summer with a bang. The stock has surged 35% over the last three weeks, on the prospects of continued strong growth and Google’s (GOOG) purchase of privately held email security firm Postini for $625 million earlier in the week. Commtouch develops and provides proprietary anti-spam solutions to combat over 180 billion email messages per day, 85% of which are spam.
Comverse Technology (CMVT.pk), is a stock that I have written a lot about, mostly in terms of it fitting the bill as an attractive private equity target. Earlier this week there were media reports that the company was looking to be acquired and has hired Deutsche Bank to investigate M&A possibilities. Though the stock is up 10% on the news, I view the company being worth at least $28 in a takeover and that would be a steal (sorry Kobi Alexander, I couldn’t resist).
Retalix (RTLX), a company that automates and synchronizes retail, distribution, and supply chain operations for stores, headquarters, and warehouses, has continued to sign deals, especially in China, and recently they re-affirmed their numbers for 2007. The recent deal with HomeBuy, an operator of 60 stores in Shanghai and eastern China, and plans to open more than 400 stores in the next five years exhibit the dynamic growth of their China business. Coupled with the persistent rumors of an SAP(SAP) bid, Retalix trading under $20, looks like a really cheap buy right now and investors who have some patience may be richly rewarded.
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Disclosure: Author’s fund is long CTCH, CMVT.pk, RTLX as of 7/13/07. He doesn’t own any other positions in companies mentioned in this article.
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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.
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