Written by: Zack Miller | October 28, 2007
Zack Miller
IsraelNewsletter.com
It’s great when you read about your own service provider going public. It’s a tremendous feeling of accomplishment as a consumer when you think your well-spent dollars have helped propel your ISP into the big leagues. So I read with excitement today that my ISP, 012 Smile.Communications (SMLC) is gearing up for an IPO this week.
SeekingAlpha has a short write up on the IPO. I love Smile’s service — I love their logo (cure little smiley a la Incredimail (MAIL)). At first blush, I don’t love the IPO. 40% yoy revenue growth off the back of a 60% rise in cost of revenues. Not a particularly jiggy biz in my mind.
In fact, it hearkens to the same discussion we’ve raised before at IsraelNewsletter.com about the interest in investing in native Israeli service providers: where’s the growth? Read Aaron “Buy Everything” Katsman’s write up on Israeli cellular leader: Cellcom (CEL). Aaron’s pretty tough on CEL and explains that growth is going to eventually have to come from international expansion. The same will probably hold true for SMLC.
I’m reserving my smile for now on 012 Smile.Communication’s IPO. Let’s watch how the market receives the new offering.
Disclosure: Author’s fund has no position in any stock mentioned as of 10/28/2007.
Please see our Disclaimer HERE.
Like what you see? Sign up to receive daily updates from IsraelNewsletter here.
*******************************
Zack Miller is the lead equity analyst for America Israel Investment Associates, LLC. and a former equity analyst for a leading multinational hedge fund. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email zack@profile-financial.com
Written by: Aaron Katsman | October 25, 2007
Aaron Katsman
www.IsraelNewsletter.com
First things first. A big thank you to fellow IsraelNewsletter colleague Doug Goldstein, for taking out the entire IsraelNewsletter team(with spouses), to a really nice restaurant last night, and springing for the check. Giddy up.
Much has been made over the last few days over last weekend’s FT article about Gilat Satellite Networks(GILT) and potential suitors. The article said that the company could fetch upwards of $500 million in a deal. That puts it about 15% above it’s current market value. I would expect a deal to get done and I wouldn’t be surprised if it was for even more than the predicted $500 million.
Gilat’s business is doing well. Revenues for Q2 ‘07 were at a 5-year high. Net income grew strongly, and they continue to sign both extensions and new deals. Yesterday they signed an expansion deal with Russian telecommunications provider North-West Telecom. North-West Telecom is expanding its Gilat SkyEdge satellite network to bring telephony and broadband Internet services to a growing number of remote communities in northwest Russia. The network expansion will serve many more sites in the Murmansk, Karelia, Komi and Vologda regions. Heck, if they do a deal in Kamchatka, they would win in RISK.
The company has rejected offers in the past at lower valuations, and I would expect them to hold out for a higher premium than is currently being mentioned. At $10.90 a share, either through a takeover or growing the business, the stock looks cheap.
Please see our Disclaimer HERE.
Disclosure: Author has no holdings in any stock mentioned.
Like what you see? Sign up to receive daily updates from IsraelNewsletter here
Aaron Katsman is the 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: Zack Miller | October 7, 2007
Gilat Satellite Networks (GILT) announced that its subsidiary, Spacenet, is working with Verizon (VZ) Business to deploy a custom satellite network for the US Postal Service.
…and here come the lawsuits against BigBand (BBND). BigBand had a disastrous quarter and the stock plunged over 30% in one trading day. The provider of the de facto network architecture for digital simulcast, an application that facilitates the insertion of advertising and the transmission of video in a digital format while still providing service to analog customers, blamed a variety of factors on its revenue shortfall, including increased software customization and integration, a slowdown in Telco-TV revenues, and softness in its data business. Read the press release here. IsraelNewsletter has also written recently about what we thought was going on at BigBand.
Teva (TEVA) gets FDA approval for generic Valtrex, a version of GlaxoSmitKline PLC’s herpes drug. Valtrex sold about $1.3 billion last year.
Lots of interesting stuff going on at IsraelNewsletter pick, G-Willi Foods (WILC). Read what analyst Aaron Katsman has been saying on recent M&A activity. Look for IsraelNewsletter to clear up some of the confusion surrounding the deal later this week.
Alon USA Energy (ALJ) reported minor snags at its 70k barrel/day Big Spring, TX refinery, but with no effect on production.
After gaining more than 200% in the past six months and 500% in the last 12, Ceragon Networks (CRNT) is downgraded by Collins Stewart. Read the Globes story.
Leave a comment
Category:
israel,
news summary
Tags:
,
alj,
bbnd,
bigband,
ceragon,
crnt,
gilat,
gilt,
israel,
news,
verizon,
vz,
wilc
Written by: Aaron Katsman | September 27, 2007
By Aaron Katsman
www.IsraelNewsletter.com
With Iranian President Mahmoud Ahmadinejad gaining all the headlines, in part due to his comments to destroy Israel, IsraelNewsletter.com would like to present the Iranian President with 3 Israeli stock picks, which will convince him to save the Jewish state. These stocks will keep that pompous grin on his face, as he watches them soar to heights reached only by the Israeli Air Force as they fly overhead about to bomb his nuclear program into smithereens.
Tefron (TFR) is a textile company that manufactures boutique-quality everyday seamless intimate apparel, i.e., lingerie, sold throughout the world by Victoria’s Secret (LTD). According to Wikipedia, lingerie is a term for women’s fashion undergarments. With Iran being a Homosexual-free country according to the president, and with woman enjoying tremendous freedom, it would seem ripe for a few boutiques to open. Tefron stock is trading at a 52 week low and Q2 results were awful. That being said, I think the drop has been overdone. The company is optimistic for Q4. CEO Yos Shiran said, “given our expectations for improved active-wear sales in the fourth quarter mainly due to positive indications received from Nike for increased ‘next generation’ product orders, and a seasonally stronger quarter for swimwear sales, we expect a strong improvement in sales and margins in the fourth quarter compared to the second quarter of 2007.” At around $6.20 a share, I hope to see a nice upside move by the end of the year.
Keryx Biopharmaceuticals Inc. (KERX). Ahmadinejad, in almost denying that the Holocaust ever took place, made clear his interest in scientific research. Based on this, it’s only right to include a Biopharma company. Keryx engages in the acquisition, development, and commercialization of pharmaceutical products for the treatment of diabetes and cancer. They announced a licensing agreement with Japan Tobacco worth up to $100 million in fees to give an exclusive right to develop and market its drug candidate Zerenex in Japan. The company has many products in late phase testing and we may see some blockbuster drugs coming to market in the not too distant future.
Nice Systems (NICE). With such a friendly demeanor, the name itself makes it appropriate. But there is more. You mentioned that your country was the actual victim of terror. Well then you need a top notch security company to keep you safe. Nice is a security company that specializes in two markets: Security and Call Centers. Its security solution empowers security personnel to detect, prevent, and respond to threats in real-time. It also allows them to investigate, and reconstruct criminal and security cases using video surveillance and control services, incident monitoring, and reconstruction solutions. The company has continued to achieve strong growth quarter after quarter. The company raised guidance last month, and we expect a very strong Q4.
President Ahmadinejad, these Israeli companies should keep you grinning from ear to ear.
Please see our Disclaimer HERE.
Disclosure: Author’s fund is long TFR and NICE as of 9/25/07. Author holds no positions in any other companies mentioned.
Like what you see? Sign up to receive daily updates from IsraelNewsletter here
Aaron Katsman is the 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.
