Aaron Katsman
www.IsraelNewsletter.com

As we dig out from the snowstorm that crippled Jerusalem, attention this weekend turns to sunny Arizona, and the playing of the Super Bowl. While IOI has a strict policy against choosing one team over the other, as an individual poster I will take the liberty and say that the Patriots better win, because I can’t imagine what it is going to be like to have to listen to a bunch of obnoxious New Yorkers go on and on about the Giants.

Here at IOI we would like to present our top 2 Super Bowl picks. These Israeli stocks are sure to rise enough in value that you will be able to fly to Disney World with your earnings.

Verint Systems(VRNT.pk) the security company has been on fire over the last month and a half. Previous to that it was a one way ticket downhill. The stock has gotten crushed over the last few years, mostly due to the mess that is the parent company Comverse Technology(CMVT.pk). The fact the Verint had to delay filings and get delisted from the NASDAQ has taken its toll on the stock. If you can get beyond the scandal with Comverse, you will find that Verint is growing nicely, and well undervalued to its competition, namely fellow Israeli security play Nice Systems(NICE).

Elbit Systems(ESLT) the defense company just keeps signing new deals. This past Sunday’s deal with the Netherlands, while only a $40 million deal, was much more important than the money. The company thinks that this may help them crack into NATO, and if that happens, they will start selling like crazy. With the world continuing to be a very dangerous place, Elbit Systems should benefit.

Go Pats!

Disclosure: Author’s has a position in VRNT.pk and ESLT and is long the stock as of 2/1/08.

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

In what is a pure act of Chutzpa, former Comverse Technology CEO(CMVT.pk) Kobi Alexander is suing his former company for $72 million for unpaid severance and other un-fulfilled contractual obligations. The suit claims that the company “has also refused to honor its other contractual obligations to Alexander, including, but not limited to his right to severance pay, indemnification and advancement of his legal fees, bonuses and fringe benefits .”

So Mr. Alexander, shareholders are supposed to support your lifestyle in Namibia, as you do whatever possible to pay off local authorities to help delay your extradition back to the US. Alexander was charged by US authorities in the option back-dating scandal, and proceeded to skip the country and hide out in Namibia.

He has maintained his innocence, blaming poor advice from his financial and legal advisers. Of course for the cynics among us, why run away to Namibia if you are in the clear? If you have a good defense, why not use it. Why become a fugitive?

If for some reason he actually were to win this case, he will have succeeded in milking Comverse shareholders once again. This better not happen. 

Disclosure: Author’s has a position in CMVT.pk and is long the stock as of 1/28/08.

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  

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.

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