Radvision(RVSN): My Love/Hate Relationship with Them
Written by: Aaron Katsman | November 23, 2007
Aaron Katsman
www.IsraelNewsletter.com
So here we go again. Just when I had pretty much thrown in the towel on Radvision(RVSN), the video-conferencing over IP and 3G networks company throws me for a loop with news of an insider stock purchase. The stock has gotten absolutely crushed this year down a whopping 40% YTD, due to a string of lower earnings guidance for the last few quarters. While the company enjoys a very close relationship with Cisco(CSCO), I am of the opinion that they have taken that relationship for granted and have lacked the focus and drive necessary to bring in other customers and grow the business.
A few days ago, the company received permission to purchase up to $30 million in stock. Skeptics among us may see that as a PR stunt to boost the stock, but in addition to the news of the company buyback, was the more interestingheadline that Yehuda Zisapel, a former Chairman of the Board of RVSN and the brother of the company’s current Chairman of the Board, bought $2 million of stock.
What to make of all this? On the one hand I can’t stand when companies talk a good game and fail to deliver. On the other hand, when the former Chairman puts in $2 million, I am intrigued. With the stock so far down, it may pay to start getting back in and slowly build a position. Of course as soon as I do, I am sure something else bad will happen, and it will start to drop again!
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Disclosure: Author has no position in any other stocks mentioned, as of 11/23/07.
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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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