Aaron Katsman
www.IsraelNewsletter.com

As my buddy Zack“Facebook” Miller posted exactly 2 weeks ago, Alvarion(ALVR) today announceda huge win, inking a deal with a “Tier-1″ player. That player is expected to be France Telecom and the deal is estimated to be in the $20 million range. Here at IOI we continue to be positive about the technology and the 2 major Israeli players, Alvarion and Ceragon Networks(CRNT).

You just have to love these little Israeli companies and their innovation. Just when you think the end is near, Bang, they sign a major deal. 

With the recent weakness in both stocks, these 2 could be big winners in ‘08.

Disclosure: Author’s fund holds a position in ALVR and is long the stock as of 12/19/07.

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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.

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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.

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