Written by: Aaron Katsman | January 24, 2008
Aaron Katsman
www.IsraelNewsletter.com
With news that Cisco(CSCO) Chairman and CEO John Chambers will be in Israel next week, thoughts turn to Radvision(RVSN) and potential salvation for investors. As we have mentioned here numerous times, Radvision and their video-conferencing technology have done nothing but disappoint investors for years. Doing much of their business with Cisco, and with Chambers known affinity with video-conferencing, investors have been waiting for the headlines to scream ” Cisco to buy Radvision.” Well John, there is no better time than the present!
After announcing an investment for $1.6 billion in the UAE last week, the least the Cisco CEO can do is spread a little financial joy in Israel, and buy Radvision.
Disclosure: Author’s has no position in any stock mentioned as of 1/24/08.
Please see our Disclaimer HERE.
NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.
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.
Written by: Aaron Katsman | January 23, 2008
Rumours are again circulating that Gilat Satellite Networks(GILT) is about to be acquired. We reported on this a few months ago and it appears that we actually got one right. Giddy up!Globes is reporting, “that after months of rumors and speculation, Gilatcould be sold in the near future. It is believed that a group headed by Mivtach Shamir Holdings Ltd., one of its current shareholders, is close to signing an agreement for the acquisition of Gilat, after raising its bid to $11.60 per share. The new offer reflects a valuation of $455 million for Gilat, or $483 million fully diluted, and a 14.2% premium over its current market price.
Gilat develops and produces very small aperture terminals for satellite-based communications networks. As my buddy Zack Miller wrote,”Competition in the satellite industry is heating up. Media companies, along with cable and wireless companies, have declared their desire to enter the satellite communications market. Instead of building an entire division dedicated to this, some of these companies are looking to either partner with, or acquire,an existing firm with good sales distribution. Gilat, with its focus on emerging markets and strong balance sheet, could be a good acquisition candidate.”
Disclosure: Author’s fund holds a position in GILT. He has no position in any other stock mentioned as of 1/23/08.
Please see our Disclaimer HERE.
NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.
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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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.
Please see our Disclaimer HERE.
NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.
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.
Written by: Aaron Katsman | January 21, 2008
Aaron Katsman
www.IsraelNewsletter.com
With today’s bloodbath in Asia and in Europe, investors want to know what should they do? Should they panic and sell everything and move into cash, or should they hold on and keep absorbing large market losses?
Obviously if I actually could predict the future, I wouldn’t be blogging. Rather, I’d be sipping some kind of drink with an umbrella in it. But while none of us can see into the future, examining data from the past may help us shed some light on the current market situation.
An interesting article in this weekend’s Seattle Times spoke about previous market reactions to recessions. Whether we are in one or not is subject for another post. Recessions on average last 216 days, or just over seven months, and stocks post an average 8.64 percent decline during the first half of the pullback, according to Citigroup(C) data dating back to 1953. That actually doesn’t sound too bad compared to the 16% we are down from high in October. Anyway, we are about half way through this cycle.
So what’s the good news? While the first half of a recession can punish stocks, the second half tends to reward investors. During the nine recessions dating back to 1953, S&P 500 stocks have gained 13.17 percent on average in the latter half of a recession, according to Citigroup.
Let’s hope history repeats itself again this year.
Disclosure: Author’s fund has no position in any stock mentioned as of 1/21/08.
Please see our Disclaimer HERE.
NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.
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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