Aaron Katsman
IsraelNewsletter.com

Once again Israel has demonstrated that what it lacks in natural resources it more than makes up for in brainpower. Lucky for the world that it’s a renewable resource. News that Azilect, a drug that is co-developed by Teva Pharmaceuticals (TEVA), has been successful in the treatment of Parkinson’s Disease, is another in the long-line of cutting edge innovations produced in Israel, and exported to the the rest of the world.

According to a report in Haaretz: “Azilect, which is the brand name for rasagiline, was tested in 1 milligram tablets as a treatment for Parkinson’s Disease. Teva said yesterday that the drug can actually slow the disease’s progression, which can’t be said for any other therapy for the so-far incurable nervous system condition.”

For Teva, this drug has the potential to generate $1billion is sales, and be a mega-drug. Teva, biggest generic drug company in the world, has also turned into a R&D powerhouse focusing on neurological diseases. Copaxone, another Teva product which treats Multiple Sclerosis, has turned into the number 1 global treatment in the fight against MS.

For the more than 4 million Parkinson’s sufferers, this breakthrough could be life changing. Teva hopes to get regulatory permits to sell the drug not only as a treatment of the disease but also as a way to slow down the progression of the disease. They are shooting for the end of ‘09 to get the permits. For both investors and Parkinson’s sufferers, let’s hope they get the permits sooner rather than later.

Disclosure: Author’s fund has a position in TEVA as of 6/17/08.

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

If “Initiative 97″ makes it on the ballot in the fall, citizens of Seattle will be asked to approve a measure that would prohibit the city from investing its pension funds in corporations that benefit from the Iraq war, or companies that provide material support to the Israeli government within the so-called “occupied territories.” The opposition to the initiative is being led by StandWithUs.org. It strikes me as a bit odd that a measure that seems to be intended to protest the U.S. Iraq policy also includes divestment from Israel.

Why the connection?

(Continue »)

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Aaron Katsman
www.IsraelNewsletter.com

April’s Israeli CPI rose a much more than expected, 1.5% leading most analysts to predict that the Bank of Israel will raise interest rates by at least 0.5% at the end of the month. The inflation jump for April was the highest since 2002, and inflation over the last 12 is at 4.7%. IOIactually wrote about surging Israeli inflation some time back. The question for investors is how to play the rising inflation game?

I think that we will see a rotation out of local Tel-Aviv Stock Exchange stocks into Israeli stocks that trade abroad. Why? Because most of the large, locally listed companies are a play on the local consumption game. Keep in mind that Israel had been experiencing 5+% growth for the last three years. With surging inflation, and interest rates set to rise sharply, the local Israeli consumer is undoubtedly going to take it on the chin. All you have to do is walk into a local supermarket and you see how prices have risen. Tomato prices have almost doubled in the last few months, chicken, bread, other fruits and vegatable have all seen sharp price rises as well. The local consumer is sure to cut back spending, making local consumption stocks, not a particularly attractive place to park your money.

So what to do? As I said, I think we are at the early stages of a rotation into the Israeli companies that do most of their business outside of Israel. Hi-tech companies for the most part. We have seen a recent out-performance in these companies, and many have also produced stellar earnings reports. Companies like Given Imaging (GIVN), Syneron (ELOS) and Pointer Telocation(PNTR) have all blown past earnings estimates over the last few days.

If you are looking to invest in Israel, it may pay to take a long look at the Israeli stocks that trade in the US, as they appear set to outperform.

Disclosure: Author’s fund has a position in GIVN,ELOS, and PNTR. He has no position in any stock mentioned as of 5/16/08.

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

Perrigo (PRGO) a company that develops, manufactures and distributes over-the-counter and prescription pharmaceuticals, announcedthat they received approval from the FDA to market for a Nicotine based smoking cessation gum.

This is another in a long line of wins the company has experienced of late. Shares of Perrigo have bucked the market trend over the last 6 months and have continued to move sharply higher. Commenting on the news, CEO Joseph C. Papa said, “This approval of orange-flavored, coated nicotine gum extends our leading store brand position. Our expanded range of smoking cessation products also includes coated mint-flavored gum, coated fruit-flavored gum, uncoated gum and lozenges.”

The estimated market for over-the-counter nicotine gum and lozenge products is around three quarters of a billion dollars. So this is clearly a big potential earnings  driver for the company.

I have never smoked so I have no idea what it’s like to try and stop. But from what I understand, the hardest part is trying to break the cravings from nicotine addiction as well as certain activities that you do when smoking. That those activities ‘call’ for you to smoke.  The nicotine gum helps negate the cravings associated with smoking, freeing you up to work on your ability to do certain activities without smoking.

As someone who chews gum like it’s going out of style, but also can’t refuse a cheese danish, I hope they come out with a gum, that helps cut the craving for eating and helps you to lose weight.

Disclosure: Author’s fund has a position in PRGO, fund has no position in any other stock mentioned as of 4/25/08.

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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