With the Democratic National Convention in full swing, expect much attention focused on alternative energy, Cleantech and environmental issues. After all, House Speaker Pelosi has mentioned that her goal is to save the planet and Al Gore will show up and do his usual speech on how global warming will destroy the planet if we don’t do anything ASAP. I don’t want my cynicism to show through but have the DNC and Obama’s organizers taken any measures to ensure that this convention is environmentally friendly? How much energy is being used to run the event? Just asking.

Anyway, a great article out in the Jpost today about how Israel is on the way to being a world leader in Cleantech. While Shai Agassi’s electric car initiative has gained many headlines around the world, Israel is also very quietly making strong inroads, in solar and water technologies. The article focuses on how Israel is developing the technology for the purpose of letting larger nations do the implementation. Much like the current technological revolution, Israel has been behind many of the advances that have powered us forward. The view is that Cleantech will be Israel’s next boom industry as technologies will be developed that power a move away from crude oil towards alternative energy sources.

The article quotes Isaac Berzin, an expert in using algae to curb greenhouse gases: “Israel should be a world leader - creating the solutions the world is looking for. Investments are coming to Israel [as a result] and lots of jobs are created. Let’s say you develop a major solar technology, which is cost effective etc. What’s the demand for electricity in Israel? A small fraction of world demand. If your only output is Israel then you are in trouble. Hi-tech was great for Israel. Where were the markets? Out there, which is absolutely fine.”

It’s interesting that the one thing Israel lacks is natural resources. The one thing Israel has loads of is brainpower, ingenuity and entrepreneurship. Isn’t it ironic that Israel is using its’ main resource to try and level the economic playing field by developing technology that will greatly lessen the need for natural resources.

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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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Save the world, enough with crude,
Drill offshore now? hey, surf’s up, dude.
Warming planet, costly food,
Oil firms with attitude,
The ‘wakening has been quite rude.

“It’s our own fault”, we like to say,
Our cars, our wars, and our hairspray,
Now waves, wind, solar–are in play.
Renewables will save the day,
Drive SUVs? get locked away.

“But it’s just nature,” others cry,
We are not about to die.
There’s still ozone in the sky,
Temperatures are not so high,
They aim to tax both you and I.

Soon we’ll turn another page,
Global cooling they will gauge.
Environmentalists will rage,
“We’re entering a new ice age!”
Is that judgment any more sage?

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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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Aaron Katsman
IsraelNewsletter.com

While it sounds opportunistic, many investors think that the best time to invest is when there is ‘blood in the streets’. One industry that has been absolutely crushed is the oil refinery business. With prices of crude oil reaching record high levels daily, refiners are feeling the squeeze. That’s why it’s interesting that the Israeli refiner Delek US (DK) is reportedly looking to make acquisitions in the range of $1 billion.

According to a report in the Israeli daily, Globes,: “Delek US Holdings Inc.  notified the US Securities and Exchange Commission (SEC) on Friday that it ‘is currently exploring the potential acquisition of certain petroleum refining, retail, and wholesale marketing assets in the US’ for $1 billion.”

The report continues: “US energy market sources believe that Delek US is seeking to buy a refinery in Oklahoma. Valero Energy Corporation (VLO) and Sonoco Products Company (SON) have both put up refineries for sale because of eroding profit margins.”

Shares in Delek have lost more than 65% over the last year. But you have to love their vision. They can get  another refinery at a huge discount, so they are buying it.  You have to believe that at some point the price of crude will drop. If it doesn’t, then all the refiners will probably go out of business anyway, so to me this deal makes a lot of sense. What do they have to lose?

Buy low and sell high. Over the long-term management may turn out to be real heroes. Instead of resting on their laurels through a bad market cycle they are looking for ways to enhance future shareholder value. Loading up on cheap assets when things are tough. If the price of crude starts to fall, look for shares in Delek to potentially power higher.

Disclosure: Author’s fund has a position in DK. He has no position in any other stock mentioned as of 6/29/08.

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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Aaron Katsman
IsraelNewsletter.com

Common wisdom held that most global terrorism was caused by those people offended by the value system of the west as well as a hatred of Israel.  Now comes along Thomas Finger and dispels the myth. Apparently global warming is the cause of terrorism.

The Chairman of the National Intelligence Council spoke to Congress earlier this week. According to a CNN report he said, ” Climate change “will aggravate existing problems such as poverty, social tensions, environmental degradation, ineffectual leadership and weak political institutions. All of this threatens the domestic stability of a number of African, Asian, Central American and Central Asian countries.

People are likely to flee destabilized countries, and some may turn to terrorism.

The conditions exacerbated by the effects of climate change could increase the pool of potential recruits into terrorist activity.”

What a bunch of garbage. (Oops, bad choice of words, with all the landfill issues we face). Basically he is saying that due to economic hardship and political instability, people are going to start blowing themselves up and kill innocent people. Maybe he could give the human race a bit more credit. After all 30 years ago, when human destruction was threatened by an ice age, people didn’t flee to terrorism, and terrorists hijacked airplanes and killed Israeli Olympians in Munich, without knowledge of global warming. Correct me if I am wrong but doesn’t the world continually face poverty, social tensions and a lack of political leadership? Except for radical Islam and their Jihadists, we don’t see citizens who live  in countries with these issues, turn to terrorism. (Continue »)

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