The Israeli 4-Horsemen
Written by: Aaron Katsman | November 7, 2007
Aaron Katsman
www.IsraelNewsletter.com
With the “Booyah” man himself launching a Chinese version of his 4-horsemen, I felt it appropriate that we have any Israel version as well. So back up the truck into the stable and let’s unveil the Israeli 4-horsemen:
Teva Pharmaceuticals(TEVA), the world’s largest generic drug maker is money in the bank. With a great pipeline for ‘08, Teva looks like Seattle Slew galloping towards the triple crown.
Checkpoint Software(CHKP), who produce information technology security hardware and software, has put together a run of good earnings and raised guidance looking ahead. The security space is hot, and IBM’s(IBM) comment last week, that they are looking to make a big acquisition in the space makes Checkpoint a stock to own.
Elbit Medical Imaging(EMITF), the real estate and bio-tech company has provided huge returns for investors in ‘07 and I look for the trend to continue for years to come. Though Crossprofit makes an excellent point that they need to change the name, the company is intriguing. In addition to their eastern European and Indian real-estate holdings, the company also owns very large stakes in two of the most exciting private (though an IPO is definitely in the cards) companies Israel has to offer. Insightec ltd., develops a product that combines MRI technology with focused ultrasound in order to treat serious diseases such as bone, liver and brain tumors, without the invasive procedures that are currently used. Elbit Medical owns over 50% of Insightec, and some analysts think that an IPO valuation of close to $1 billion is a very real possibility. The other private company is Gamida Cell. Gamida Cell is developing, along with the aforementioned Teva, a line of cell therapy products for the treatment of such diseases as leukemia and lymphoma.
And finally, making a run along the rail is Ormat Technologies(ORA). They engage in the geothermal and recovered energy power business, and produced a 13% rise in net income. While alternative energy is all the rage, Ormat is actually producing results. Factor in rumors swirling about an M&A, and Ormat makes for a good bet looking forward.
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Disclosure: Author has a position in TEVA,CHKP,EMITF,ORA as of 11/7/07.
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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.
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