Aaron Katsman
IsraelNewsletter.com

Today’s news that Isal Amlat Investment Ltd. has agreed to buy 10% of TAT Technologies(TATTF) for 54 million shekels, is sweet for investors. Currently TAT is trading pre-market at a market cap of just under $100 million. This deal values the company at about $136 million(at USD/NIS of 3.95), a huge premium to where it’s trading. TAT Technologies together with its subsidiaries, engages in the manufacture and sale of a range of heat transfer equipment used in mechanical and electronic systems on-board commercial and military aircraft, and other electronic equipment.

The company has continuously shown strong growth. In Q2 ‘07 the company announced results: Net income of $1,923,020 an increase of 30% compared to the net income of $1,481,048 for Q2 ‘06. The company also has a dividend yield over 2.5%.

Factor in today’s acquisition(vote of confidence) and TAT looks like a nice play for long-term investors looking for some exposure to the aviation industry.

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Disclosure: Author has a position in TATTF as of 11/14/07.

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Aaron Katsman is the 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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