By Aaron Katsman
With Iranian President Mahmoud Ahmadinejad gaining all the headlines, in part due to his comments to destroy Israel, IsraelNewsletter.com would like to present the Iranian President with 3 Israeli stock picks, which will convince him to save the Jewish state. These stocks will keep that pompous grin on his face, as he watches them soar to heights reached only by the Israeli Air Force as they fly overhead about to bomb his nuclear program into smithereens.
Tefron (TFR) is a textile company that manufactures boutique-quality everyday seamless intimate apparel, i.e., lingerie, sold throughout the world by Victoria’s Secret (LTD). According to Wikipedia, lingerie is a term for women’s fashion undergarments. With Iran being a Homosexual-free country according to the president, and with woman enjoying tremendous freedom, it would seem ripe for a few boutiques to open. Tefron stock is trading at a 52 week low and Q2 results were awful. That being said, I think the drop has been overdone. The company is optimistic for Q4. CEO Yos Shiran said, “given our expectations for improved active-wear sales in the fourth quarter mainly due to positive indications received from Nike for increased ‘next generation’ product orders, and a seasonally stronger quarter for swimwear sales, we expect a strong improvement in sales and margins in the fourth quarter compared to the second quarter of 2007.” At around $6.20 a share, I hope to see a nice upside move by the end of the year.
Keryx Biopharmaceuticals Inc. (KERX). Ahmadinejad, in almost denying that the Holocaust ever took place, made clear his interest in scientific research. Based on this, it’s only right to include a Biopharma company. Keryx engages in the acquisition, development, and commercialization of pharmaceutical products for the treatment of diabetes and cancer. They announced a licensing agreement with Japan Tobacco worth up to $100 million in fees to give an exclusive right to develop and market its drug candidate Zerenex in Japan. The company has many products in late phase testing and we may see some blockbuster drugs coming to market in the not too distant future.
Nice Systems (NICE). With such a friendly demeanor, the name itself makes it appropriate. But there is more. You mentioned that your country was the actual victim of terror. Well then you need a top notch security company to keep you safe. Nice is a security company that specializes in two markets: Security and Call Centers. Its security solution empowers security personnel to detect, prevent, and respond to threats in real-time. It also allows them to investigate, and reconstruct criminal and security cases using video surveillance and control services, incident monitoring, and reconstruction solutions. The company has continued to achieve strong growth quarter after quarter. The company raised guidance last month, and we expect a very strong Q4.
President Ahmadinejad, these Israeli companies should keep you grinning from ear to ear.
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Disclosure: Author’s fund is long TFR and NICE as of 9/25/07. Author holds no positions in any other companies mentioned.
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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 firstname.lastname@example.org.