Spitzer: Distressed Property? Look at Distressed Israeli Stocks
Written by: Aaron Katsman | June 12, 2008
Aaron Katsman
IsraelNewsletter.com
Amazing how your financial situation can improve if you save $5,000 an hour by being faithful to your wife. Apparently, shamed former New York Governor Eliot Spitzer is flush with cash as he contemplates opening up a real estate fund focused on distressed property.
According to a report in the NY Sun: ” Late last month, the former governor of New York gathered a group of high-level Washington, D.C.-based labor union officials in a conference room at the headquarters of his father’s real estate business in Manhattan and pitched them his idea for starting such a fund.”
The report continues, “Distressed real estate funds — also known as “vulture” or, more euphemistically, “opportunity” funds — typically promise returns of more than 20% and are active in Florida, Nevada, and Southern California. They rely heavily on pension and university endowment investments. Mr. Spitzer is said to be envisioning projects valued between $100 million and $500 million.”
Instead of distressed property, Spitzer should focus on some distressed or beaten down Israeli stocks that trade in the US. After all, $5,000 can’t buy you an office building, but it can buy you 500 shares of a $10 stock. Just think, he could have a million dollar stock portfolio if he just remains faithful.
Here are 2 stocks that should draw the attention of Spitzer:
Tefron (TFR), a textile company that manufactures boutique-quality everyday seamless intimate apparel, active wear and swimwear sold throughout the world by such name-brand marketers as Victoria’s Secret, Nike (NKE), Target (TGT), and The Gap (GPS), has been crushed over the last year. The stock is down more than 70% over that time, on successive lackluster earnings reports, as well as a very weak US dollar. The company does see nice growth in their active-wear lines, so at $2.83 a share it maybe worth taking a look at. Eliot, 2 words: Lingerie and Victoria’s Secret.
Nice Systems (NICE), develops, markets, and supports integrated, scalable multimedia digital recording platforms, enhanced software applications, operational risk management software solutions, and related professional services is one of our favorites at IOI. With the stock down about 17% over the last year, investors looking for a strong growth Israeli tech play may want to potentially take a look. For Spitzer the stock must have special meaning. You see, Nice also works tracking money flows. Though not confirmed, many believe that’s a Nice product was used to track the unusual money flows that ultimately were used to break the Spitzer case. Eliot, why not try and profit from those who did you in?
Not that I have a bias towards either stock but I have a hunch that if Spitzer had to choose just one stock, I know which stock he would invest in.
According to the aforementioned article: “Mr. Spitzer works out of the Crown Building at 730 Fifth Ave., a 26-story structure his father and two other real estate investors bought in 1991 (in what turned out to be a highly lucrative investment). Playboy Enterprises leases commercial space in the building.”
Looks like Tefron it is!
Disclosure: Author’s fund has a position in Nice. He has no position in any other stock mentioned as of 6/12/08.
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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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