Aaron Katsman
www.IsraelNewsletter.com

It’s official. Israel is no longer an emerging market. Yesterday, ratings agency Moody’s joined Standard & Poor’s and Fitch, by upgrading its ratings for Israel. The government foreign and local currency bond ratings have been upgraded to A1 from A2, and the foreign currency ceiling for bank deposits has been upgraded to A1 from A2 as well.

This is another feather in the cap of the Israeli economy. It was only 6 years ago that Israel was on the verge of economic collapse, but thanks to then Finance Minister and former PM Benjamin Netanyahu’s courageous economic reform policy, the economy has strengthened considerably. By lowering taxes, limiting government spending and privatizing state owned industry, Israel has experienced some of the strongest growth outside China that world has seen in some time.

The sign of a strong economy is a strong currency. Over the last year, the Israeli Shekel is one of the 3-4 strongest currencies in the world.

“Fiscal reforms are paying off in terms of increased economic vibrancy, diversification and competitiveness, and to the benefit of strengthening tax revenues, in spite of tax cuts,” said Moody’s Analyst Joan Feldbaum-Vidra.

In spite of tax-cuts? Joan, it’s because of the tax cuts. This is another proof that supply- side economics is the way to go. If you increase the economic pie, you will have larger tax revenues even with lower taxes. How do you increase the pie? By cutting taxes. 

Disclosure: Author’s fund has no position in any other stock mentioned as of 4/18/08.

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

The Israeli Shekel is once again surging against all global currencies on remarks by Bank of Israel Governor Stanley Fischer,  saying that he expected the Shekel to continue to strengthen. What is strange about the comments is the fact that the BOI has been trying to prop up the US Dollar, actually intervening in the forex market, and stated their goal of weakening the Shekel.

So why the Fischer comments? I have no idea. Why would he come out in public and make statements that contradict the very policy that he himself implemented?

It’s possible that Fischer is worried about potential inflation in Israel, a phenomenon that we are seeing worldwide, and is signalling to the market that he isn’t going to cut interest rates anytime soon. He is planning to do all that he can in order to halt inflation, even at the expense of trying to devalue the currency.

Disclosure: He holds no position in any other stock mentioned as of 4/15/08.

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

While here at IOI, we try and stick to blogging about Israeli stocks  that trade in the US, we just couldn’t pass up writing about one of the most inspirational stories of parenthood and love that we have seen.

Meet Team Hoyt. Dick and Rick Hoyt are a father-and-son team from Massachusetts who together compete just about continuously in marathon races. And if they’re not in a marathon they are in a triathlon, combining  26.2 miles of running, 112 miles of bicycling, and 2.4 miles of swimming. Together they have climbed mountains, and once trekked 3,735 miles across America.

“At Rick’s birth in 1962 the umbilical cord coiled around his neck and cut off oxygen to his brain. Dick and his wife, Judy, were told that there would be no hope for their child’s development.

“It’s been a story of exclusion ever since he was born,” Dick told me. “When he was eight months old the doctors told us we should just put him away — he’d be a vegetable all his life, that sort of thing. Well those doctors are not alive any more, but I would like them to be able to see Rick now.”

With Dick, 66 years old, running, peddling and swimming, all while pulling Rick, an extra 120 lbs., the fact that Dick can finish marathon’s and triathlon’s, is awfully inspiring for this couch potato. But more inspiring is the love between father and son. One viewing of the video and you already begin to appreciate what’s important in the world. It’s not about making an extra buck, or working a 15 hour day so that your employer gets wealthy, it’s about family, and helping out those less fortunate have a fulfilling life. 

The goal of the Hoyt Foundation Inc. is to integrate the physically challenged into everyday life. One way to accomplish this is to educate the able-bodied, making them more aware of the issues that the disabled face every day. Another is by actively helping the disabled to participate in activities that would otherwise be inaccessible to them.

Let’s wish them well as they get set to, once again, tackle the challenge of the Boston Marathon, in a few weeks.

Disclosure: He holds no position in any other stock mentioned as of 4/09/08.

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

Amdocs (DOX) one of our favorites here at IOI, announced it bought broadband cable solutions provider Jacobs RimellLtd. for approximately $45 million to build its operations support systems (OSS) offering. With the purchase Amdocs maybe the only vendor around to provide a complete “order-to-cash solution spanning all customer experience systems.”

On the heels of last week’s announcementby S&P raising Amdocs credit rating to BBB, S&P said, “The ratings on Amdocs reflect its top-tier customer base and highly visible and recurring revenue base, modest debt leverage with substantial liquidity, and good growth prospects as the telecom sector matures and shifts its focus to cutting costs.”

Coupled with their drive into the mobile world, Amdocs continues to execute their business model well, and long-term investors may want to take a strong look at the company.

Disclosure: Author’s fund holds a position in DOX. He holds no position in any other stock mentioned as of 4/08/08.

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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