Aaron Katsman
IsraelNewsletter.com

Clearly demonstrating his total misunderstanding of how a free-market works, Democratic presidential candidate Barack Obama said ‘it would be a shame’ if Anheuser-Busch (NYSE:BUD) was sold to a foreign company.

According to a Reuters report, Obama said, ” I think we should be able to find an American company that is interested in purchasing Anheuser Busch if in fact Anheuser-Busch feels that it’s necessary to sell.”

Huh?

Who is the ‘we’ Obama is referring to? Is it the government? Since when is the US government an investment banker? It’s not exactly a secret that the maker of Budweiser is in play. If there was a US company interested in purchasing Anheuser-Busch, they could put out an offer. The lack of a competitive offer means that no one is interested based on the asking price. Isn’t that rather obvious? Maybe the government should nationalize the company, in order to keep it in American hands!

Is Obama advocating the worst kind of government intervention? Does he really believe that he knows better than the market, regarding whether a publicly traded company should be sold and to whom? His protectionist tones mimic his beliefs on NAFTA. It sure appears that Obama has shown a consistent policy of being against free trade.

What’s wrong if an American company is sold to a foreign buyer? As fellow IOI colleague Zack Miller says, ” Isn’t his policy xenophobic?” Conversely, what are his feelings about an American company buying a foreign firm?

From the little we know about his stance on free trade, the impact to Israel as well as the global economy could be profound. If Obama wants to make the US into an economic island, it would cause not just catastrophe to nations no longer able to export their goods into the US, but would harm the US consumer, with less choice and more costly goods.

Someone needs to ask Obama to explain in depth his belief that we need to find an American company to buy Anheuser-Busch. As I mentioned, if he really is a protectionist, shouldn’t the voters be made aware of this and shouldn’t he need to explain his position?

In order for the economy to grow we need less government intervention not more. Let the market sort things out, and keep the government out of the way.

Disclosure: Author’s fund has no position in any stock mentioned as of 7/09/08.

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
IsraelNewsletter.com

With the 4th of July approaching, IOI would like to present a couple of Israeli stocks for your Independence day celebration. As you make the final preparations for your bar-b-que, after buying the hamburgers and the beer, you may consider doing some research and adding these 2 Israeli stocks to your shopping list.

Check Point Software Technologies (CHKP), which is the global leader in internet security, has started focusing on selling higher priced products. The company also just received an upgrade from Lehman Brothers.

According to the AP report: “Israel Hernandez said the Internet security software company is now selling higher-priced branded items and unveiling new products, and he added that demand will remain strong because security is a priority to Check Point’s customers. He said the Redwood City, Calif. company should report strong revenue growth in the next few quarters as it begins selling more appliances.”

He raised his price target to $30, which is more than 25% higher than the current price. We recently speculated as to the potential of Check Point takeover. Even Barron’s followed our lead, and wrote a similar piece. Some of our readers thought that we were spot on and some thought we were nuts. Vote here to let us know what you think.

Shares in ClickSoftware Technologies (CKSW) provider of workforce and service management software products and solutions, have been pounded over the last year.  While the company has had a couple of recent earnings misses, they still have the potential to achieve 20-25% revenue growth for ‘08, and recently reiterated their guidance. Keep in mind that this is a micro-cap stock so investors should be able to withstand the volatility associated with ClickSoftware. For investors looking for a Micro-cap turnaround story with a leading technology, you may want to do some research on ClickSoftware.

Happy 4th!

Disclosure: Author’s fund has a position in CHKP and CKSW. He has no position in any other stock mentioned as of 6/30/08.

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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