As we wrote last week, numerous business and political bigwigs were in Israel for Shimon Peres’s conference celebrating Israel’s 60th birthday. While we sat in on various sessions and working groups, given our bent for Israeli technology, we really enjoyed a session dedicated to the future of the Internet attended by the pioneers of modern media, including Sergey Brin, Google’s (GOOG) founder, and Rupert Murdoch, News Corp (NWS) founder. Now, it looks like Brin is getting closer to Israel as he eyes specific deals with leading technology players in fields that might surprise you. (Continue »)

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Aaron Katsman
www.IsraelNewsletter.com

Tomorrow is my daughter’s 7th birthday, so as is customary here at IOI, I will highlight a birthday stock to use as a gift for her. I must note that my wife has been racking her brains as to what present we should get, and she, not surprisingly, did a great job of getting a gift that we think our 7 year old will love. For full disclosure, my contribution consisted of a few grunts, when my wife asked my opinion of certain possibilities.

Because she is turning 7, why not look at a stock that is trading in that range. Well for starters we have Orckit Communications(ORCT). They develop telecommunication equipment that enables transmission of broadband services. They are a classic old-school Israeli company that has cutting edge technology, but virtually no one to buy it. They have one real customer, KDDI in Japan, and we have been hearing for a few years now about another customer that is about to make a purchase. Unfortunately, outside of a small deal with Deutsche Telecom(DT), where we have yet to see much in the way of revenue, it’s the same story quarter after quarter. Orckit may be a good stock to get my mother in law for mother’s day, but doesn’t make the grade for my oldest child.

The stock that we will purchase for her is Ulticom(ULCM.pk). They provide service essential signaling solutions for wireless, wireline, and Internet communications. One of our favorites, Comverse Technology(CMVT.pk) owns a huge stake in the company, and as we have written, we are looking for Comverse to try and sell off Ulticom. Comverse is trying to strealine their business, and create shareholder value. Hopefully, a sale of Ulticom should fetch a nice premium.

Happy birthday sweety, and I hope that you are blessed with a year filled with health and happiness. 

Disclosure: Author’s fund has a position in CMVT.pk and ULCM.pk. He has no position in any other stock mentioned as of 5/9/08.

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
www.IsraelNewsletter.com

With Israel immersed in speculation whether PM Ehud Olmert  will be indicted on bribery charges, the question for investors is what the impact will be on the markets? While globally, financial markets hate uncertainty, and just the mention of a leader getting busted for being on the take, would send indices plunging, in Israel I would expect little fallout. Why? Because Israel goes through PM’s at a rate that makes Italy proud. I can’t remember the last PM to serve out his entire 4 year term. In addition, Olmert already has 4 investigations against him. Sorry to say, but Israeli’s have become accustomed to scandal, and coalition uncertainty.

In this particular case, while the local Tel-Aviv Exchange may fall somewhat when it opens for trading on Sunday, I would expect the reaction to be short lived. Keep in mind that opposition leader, and former PM and Finance Minister, Benjamin Netanyahu is a market favorite. He was instrumental in turning Israel around economically, and basically saved the country from bankruptcy, earlier this decade.

Israeli stocks that trade in the US, should be even less effected, as most are export driven, and make most of their sales outside of Israel.

Keep tuned into IOI, as we will track the scandal and report on the impact that any new allegations will have on Israeli stocks.

Disclosure: Author’s fund has no position in any other stock mentioned as of 5/9/08.

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
www.IsraelNewsletter.com

We spend a lot of time here at IOI, discussing which Israeli stocks that trade in the US are our favorites. You’ve all read our thoughts regarding Comverse (CMVT.pk) and the value that we believe is soon to be unlocked. We’ve spoken about geothermal energy provider Ormat (ORA) and the future we believe the company has. I could go on and on, but I will spare you.

With Israel turning 60 this week, IOI would like to hear from you. We want to know what your favorite Israeli stock is and why? Which stock do you think will provide superior returns?

Feel free to post a comment and share with all our readers your analysis. 

Disclosure: Author’s fund has no position in any other stock mentioned as of 5/5/08.

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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