Happy Birthday Mother in Law!
Written by: Aaron Katsman | January 16, 2008
Aaron Katsman
www.IsraelNewsletter.com
As IOI fans are aware, last week was my wife’s birthday. After deciding NOT to buy her jewelry, I found 2 Israeli stocks that were the perfect gift. Well wouldn’t you know today happens to be the birthday of none other than my mother in law! While I could clearly take this post in many directions, as a good son in law, I will be well behaved and present a stock that’s worthy of being her birthday gift. Keep in mind that the name of the stock about to be mentioned should not be taken as a reflection of our relationship.
012 Smile Communications (Nasdaq: SMLC) is an interesting little Israeli communications company. To read more about them check out the excerpt from our newsletter, as 012 Smile was a top Israeli pick from Stearman Capital’s, Zachary Scheidt.
The company is focusing on strong growth, high margin services. They have 500,000 broadband subscribers and that number is growing, and are the first company in Israel to launch nationwide Voice Over Broadband(VOB) service. The third quarter showed 39% growth in their VOB subscriber base.
As for the tradition voice aspect of the company they decided not to pursue certain hubbing opportunities due to their low margin contribution to profitability. They continue to focus on higher margin product suite to residential and business customers.
For investors looking for exposure to Israeli domestic telecom, this is an interesting company.
As for my mother in law, happy birthday and just Smile!
Disclosure: Author’s fund has a position and is long the stock of SMLC as of 1/16/08.
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is 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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