The entire interview with Gemini’s Carmel Sofer is part of our new subscription newsletter, Israel Opportunity Investor. You can find out more about the product and the opportunities we cover at www.israelnewsletter.com.
Can you tell us a bit about Gemini?
Carmel Sofer, Partner: Gemini was one of Israel’s first VCs and is 15 years old. We now manage more than $600 million via 4 funds. We’ve just closed our 4th fund and are in the process of raising our 5th fund, which we’re targeting to be $200 million. We’ve had over 30 exits including Saifun and recently, Traiana. (Continue »)
Rumours are again circulating that Gilat Satellite Networks(GILT) is about to be acquired. We reported on this a few months ago and it appears that we actually got one right. Giddy up!Globes is reporting, “that after months of rumors and speculation, Gilatcould be sold in the near future. It is believed that a group headed by Mivtach Shamir Holdings Ltd., one of its current shareholders, is close to signing an agreement for the acquisition of Gilat, after raising its bid to $11.60 per share. The new offer reflects a valuation of $455 million for Gilat, or $483 million fully diluted, and a 14.2% premium over its current market price.
Gilat develops and produces very small aperture terminals for satellite-based communications networks. As my buddy Zack Miller wrote,”Competition in the satellite industry is heating up. Media companies, along with cable and wireless companies, have declared their desire to enter the satellite communications market. Instead of building an entire division dedicated to this, some of these companies are looking to either partner with, or acquire,an existing firm with good sales distribution. Gilat, with its focus on emerging markets and strong balance sheet, could be a good acquisition candidate.”
Disclosure: Author’s fund holds a position in GILT. He has no position in any other stock mentioned as of 1/23/08.
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.
Written by: Aaron Katsman | December 31, 2007
Aaron Katsman
www.IsraelNewsletter.com
With 2007 about to finish, it’s time to look forward to 2008. Here are a few of my predictions for the new year. Before I start I just want to make clear I don’t expect anyone to hold me to what I say, but of course if I actually get something right, rest assured I will let you know about it.
1- At some point during the year the price of crude oil will trade below $75 a barrel. This will be great for the consumer as they save a lot of money at the pump, and will cause a crashing of many alternative energy stocks, especially the Solar plays like First Solar(FSLR).
2- There will be no recession in the US economy, despite the best efforts of the media to “will” one. While the economy should slow somewhat during the first half of ‘08, the economy will grow enough to stay out of a recession, and the second half of ‘08 should bring back 4+% GDP growth.
3- The Rudy Giuliani/John McCain ticket will surprisingly win the US presidential election. With Republicans given virtually no chance to hang on to the White House, with a strong economy and the continued new-found success of the war in Iraq, they not only win but win back control of Congress as well.
4- Late in the summer the current Israeli government headed by PM Ehud Olmert will fall, and new elections will be called.
5- Picking up from a lackluster ‘07, with regard to M&A of Israeli publicly traded companies in the US, ‘08 will have no less than 6 major deals. Look for Gilat(GILT), Retalix(RTLX), Commtouch(CTCH), Comverse Technology(CMVT.pk), CEVA(CEVA), and Fundtech(FNDT) to be acquired.
6- The earth will cool, there will be no global warming.
7- After completing an undefeated season and winning the Super Bowl, the New England Patriots’ winning streak is snapped in week 3 of the ‘08 NFL season.
8- As much as I would like, most of these predictions will not come true.
We should all have a year of health, and happiness.
Disclosure: Author’s fund holds a position in GILT,CMVT.pk,CTCH,RTLX and FNDT. He has no position in any other stock mentioned as of 12/31/07.
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.
Globes reporting that fixed mobile and WiMAX player, Alvarion (Nasdaq: ALVR) may be close to a large deal with France Telecom. Globes said that CEO Zvi Friedman had alluded in a recent conference call that the company expected to win large contracts in the coming year worth more than $20 million altogether.
Aaron Katsman wrote recently about Alvarion’s ability to compete in a market soon to be dominated by large telecom equipment providers and carriers. When researching Alvarion, Katsman feels that have what it takes to compete with Motorola(MOT), Alcatel-Lucent(ALU) and Nortel(NT) — all companies that “have the global mass needed to squeeze out Alvarion”.
Where Alvarion has an edge — in fact, where many smaller Israeli companies have an edge — is in selling into emerging markets. Big players go after larger markets first before they begin to think about competing in smaller locales. Alvarion finished the 3rd quarter with 200 commercial deployments, up from about 170 at the end of Q2.
As Katsman put it aptly, “it sure sounds to me that they are competing just fine.”
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.
Disclosure: Author’s fund has a position in ALVR. He holds no position in any other stock mentioned, as of 12/05/07.
