Written by: Aaron Katsman | June 1, 2008
Aaron Katsman
IsraelNewsletter.com
A few weeks ago, Zack Miller and myself were interviewed by CNBC’s Squawk Box. The purpose of the interview was to discuss Israel’s accomplishments over the past 60 years. During the interview, we focused on Israeli companies that are publicly traded in the United States, as well as up-and-coming technologies that could potentially make a global impact over the next two to four years.
Investment Destination
Over the last four years, Israel has become a very popular destination for foreign investors. Global giants like General Electric, Microsoft, IBM and Johnson and Johnson are only a few of the companies that have made large investments in Israel by buying local companies. In fact, Warren Buffet, perhaps the world’s most famous and successful investor, made his largest non-U.S. investment when he purchased Iscar, an Israeli company, for $4.4 billion. Buffett has since referred to the purchase as a “dream investment.” (Continue »)
Aaron Katsman
www.IsraelNewsletter.com
Elbit Medical Imaging’s(EMITF), subsidiary InSightec has raised$30 million in an internal financing round. Investors were Elbit Medical Imaging subsidiary Elbit Ultrasound (Netherlands) BV, General Electric Company (GE) subsidiary GE Capital Equity Holdings Inc., MediTech Advisors LLC, and some InSightec directors and officers. Elbit Ultrasound invested $19.8 million, boosting its stake in InSightec to 53%.
InSightec develops a product that combines MRI technology with focused ultrasound in order to treat serious diseases such as bone, liver and brain tumors, without the invasive procedures that are currently used.
The question needs to be asked when they plan on an IPO? There have been rumours for the better part of 2 years as to a billion dollar IPO but to date nothing has been done.
In an interview with Globes, Elbit Medical Imaging president Shimon Yitzhaki answered the question:
Globes”: You originally planned to float InSightec in 2005 and sales haven’t risen substantially since then. Are you disappointed?
Yitzhaki:“Not at all. InSightec is an amazing breakthrough company. The board tells us that it will be worth billions, maybe more than all our real estate deals. Just a little patience is needed.”
Yitzhaki noted, “We believe that with the products in the pipeline and insurance reimbursement, within two or three years, we’ll reach hundreds of millions in sales.”
Will you reopen your IPO plans?
“We’re waiting on the IPO until we have insurance reimbursement from a number of insurers as well as FDA approval for at least one of our cancer treatments. There are also other options besides an IPO.”
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Disclosure: Author has a position in EMITF. He has no positions in any other stock mentioned as of 11/30/07.
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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.
