Aaron Katsman
IsraelNewsletter.com

Zoran (ZRAN), a developer and marketer of integrated circuit cores (ICs) and embedded software for DVDs, digital cameras, and set-top boxes, announced that US Securities and Exchange Commission (SEC) has notified the company by letter dated November 2, 2007, that the staff’s investigation of Zoran’s historical stock option granting practices has been terminated and that no enforcement action against Zoran has been recommended to the Commission. Zoran’s NASDAQ listing was in jeopardy, as they delayed publishing their financial reports while the SEC investigation was on-going.

This should help lift a cloud that was hanging over the company and allow them to focus solely on executing their business model.

My man, Zack “FACEBOOK” Miller had a great piece on Zoran, and he is really getting jiggy.

Take a good look at Zoran, as they continue to be an attractive long-term play.

Please see our Disclaimer HERE.

Disclosure: Author has a position in ZRAN as of 11/9/07.

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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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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.

Please see our Disclaimer HERE.

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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Aaron Katsman
www.IsraelNewsletter.com

It wasn’t long ago that the flag-bearer for corporate social responsibility, Ben and Jerry’s Ice Cream, went looking for a CEO. Problem was they couldn’t find a good one.

Why? Who wouldn’t want to be CEO of such a large and well-known company?

The problem was that they had made a stipulation in the terms that they were going to offer the candidate. They had a rule during the early 1980s that no employee could make more than five times what the lowest-paid worker was paid. That capped CEO pay at $81,000. What kind of well-qualified candidate would take a CEO position for that salary? No one. That’s why in ‘94 they scrapped that rule so that they could go out and get a good CEO.

Ever the demagogue, Israeli MK Shelly Yechimovich has drafted legislation limiting CEO pay to 50 times that of the lowest paid employee. She is doing this in the name of “social equality.” How will this create equality, Shelly? It won’t improve the financial lot of the lower paid employees; in fact, it will hurt them the most. How? Because they won’t get hired. If there is no financial incentive for a CEO to do a good job, then he won’t and business will stagnate, and there will be no expansion, i.e. no one new will get hired.

Executives have much more of an impact on the business than workers making the minimum wage. In fact, many times CEOs are actually the owners of the business, meaning that that have all the risk associated with failure as well. It’s a basic rule of investing: Risk vs. Reward. The more you have on the line, the more you should be able to make.

Already facing a “brain drain” with the best and brightest Israeli academics leaving Israel for greener pastures, if this legislation became law, the same thing would happen in business, something Israel can’t afford.

It’s important to note that MK Yechimovich has no business experience. She was a journalist and gained fame with a political radio show. What gives her the authority to tell us how to run a business?

Shelly, if you really want to help, stop meddling in our lives, and let us live freely, without government intrusion into every facet of society.

Please see our Disclaimer HERE.

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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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It’s been a wild and woolly week for stocks in general and even more so for Israeli companies. We’ve seen some disappointing earnings across a broad swath of stocks and even the mighty have felt some pressure.

Let’s start with Alvarion (ALVR). Even after the Cisco purchase of WiMax competitor, Navini, the stock has had a hard go of it and even received a downgrade by Merriman, Curhan, et al. IsraelNewsletter’s Katsman, though, is still very positive on the name. Read his recent post here. Before Cisco (CSCO) officially announced its takeover of Navini, I posited that it would be better served by buying ALVR. Read that article here.

Commtouch (CTCH) out with numbers.

Radvision (RVSN) stinks up the joint. Even my colleague, Aaron “Buy Everything” Katsman has lost faith in the firm. See his recent capitulation here.

Magal (MAGS) Systems gets an order.

RRSat (RRST) reported last week.

Partner (PTNR) sees a lift from rising revenues.

Answers.com (ANSW) reports really strong traffic growth in its new WikiAnswers product.

Laggard BigBand Networks (BBND) terminates its CMTS business. I wrote on BloggingStocks about the future of cable TV and how BBND plays into the thesis.

ClickSoftware (CKSW) traded down big after reporting OK earnings. Read why Katsman smells an opportunity in this name.

Microcap Cimatron (CIMT) out with earnings and some info about its plans for China.  Read some excerpts from the conference call.

012 Smile.Communications (SMLC) floated this week.  I posted on the offering here.

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