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.
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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.
Tefron (TFR) is a neat, little textile company that manufactures boutique-quality everyday seamless intimate apparel, active wear and swimwear sold throughout the world by such name-brand marketers like Victoria’s Secret, Nike (NKE), Target (TGT), The Gap (GPS) and others.
The company makes some high-end seamless sports apparel that’s being adopted at the level of the MLB, NFL, NBA, NCAA, ATP, World Cup Soccer, as well as by local and international Rugby, Running, Rowing, Softball, and Tennis clubs.
Yet, not all is bliss at Tefron.
They reported today after issuing a profit warning about a month ago and things don’t look great.
As we’ve written previously, Tefron has been having a rough time of it. In Tefron: Sexy Lingerie, Ugly Financials, we’ve explained that a part of Tefron’s woes stem from a Victoria’s Secret product line that we learn is ultimately being outsourced to India. Although the company says that this move won’t have a material impact on 2008, what’s going on here is a general product transition in the company.
The company is maturing its technology and sales towards servicing the high-end sports market. Companies like Under Armour (UA), Columbia Sportswear (COLM). Adidas (ADDYY.PK) and Nike (NKE) are all positioning to service professional league-level equipment and the much larger market behind it: sports fans. My son wears a Michael Vick (God help us) Nike Jersey to bed every night and is infrequently seen without his David Beckham jersey, now of the Los Angeles Galaxy.
Yosef Shiran, the CEO of Tefron, has to say this about what’s going on:
“However, 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.”
Tefron is migrating its business from lower margins, declining sales to an upper-end product aimed at athletes. Nike has made a mint out of this market over the past 20 years and Under Armour has seemingly come out of nowhere to become a $3 billion player.
I still own (and wear!) my Patagonia pullover I wore to beer parties at Dartmouth in my college days. Tefron needs to execute now on its product transition towards high-end sports apparel to lock in the athletic market to be able to sell to my kids when they enter school.
With the growing international worship of professional athletes, that’s the market I’d want to blow out.
Disclosure: Author’s fund is long TFR as of 8/9/07 and doesn’t hold any of the other stocks mentioned in this article.
Please see our Disclaimer HERE.
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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
