It’s Miller Time
Written by: Aaron Katsman | January 22, 2008
Aaron Katsman
www.IsraelNewsletter.com
I would like to start off by wishing a big congratulations to IOI colleague Zack Miller and wife Minda on the occasion of the Bat Mitzva(turning 12 years old and entering womanhood) of their daughter Adina. The IOI team wishes that you should continue to have a lot of joy from her and the rest of your family. I must mention the delicious brunch that was served. On a day like this when we had already seen Asian markets get slammed, and we were nervously awaiting the Wall-Street open, a good meal was about the only way to ease our sorrows. That eggplant parmesan hit the spot. Giddy up!
With all the recent birthday celebrations I feel that this blog is turning into Page 6. Anyway, without boring everyone about the gift we got Adina, I would recommend that any cash she receive be invested into the market ASAP. The question is what stock she should buy? I would say that at this point almost any Israeli stock will make you money going forward. YTD, on a screen that I have set up, less than 10% of Israeli stocks trading in the US are showing green. It’s no secret that it’s been a brutal winter for stocks, but based purely on valuation, bargains abound. Take for example Nice Systems(NICE), The stock is down over 20% YTD, is now trading with a PEG of just 0.96. The stock is more than 30% off its’ high. Has the world gotten safer? Has fraud gone away? At $26, this is a no brainer. While they have a lot of exposure to both US and European banks in terms of sales, perspective is needed. They are selling anti-fraud products to banks. No matter how badly global banks are struggling, they keep expanding their anti-fraud product suite. NICE is well positioned to take advantage of this.
Adina- Very loosely translated in English, your name means nice. Being nice has served you well for your first 12 years. Let’s hope the stock NICE serves you up a whole lot of profits for the future as well.
Congratulations!
Disclosure: Author’s fund has a position and is long NICE as of 1/22/08.
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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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