It’s been a busy week for Israel investors. For those subscribers to our new subscription newsletter, Israel
Opportunity Investor, they’ve seen one portfolio company, Gilat Networks (GILT), announce an acquisition for a premium. While we hate to brag and say “we told you so”, well, we told you so. Read more about how merger arbitrage investors might look at this deal.
We saw CFO musical chairs this week with the Gilat CFO moving over and joining another portfolio holding, Check Point Software (CHKP). While we’re on the topic of Check Point, we wrote recently about a Barron’s article that mentioned that Check Point could be an acquisition candidate. We’ve hear your remarks and invite you to give your opinion. Will donkeys fly before this happens or for the right price, will Check Point give it up. You make the call.
Forbes sees value in Israel real estate and has ranked it the top “up and coming” location globally. The financial publication sees 2008 as a very tough market for real estate but sees Israel as a bright spot for global investors
We also saw the first introduction of a true Israel ETF (ESI). You can read our run-down of what we think of the iShares product here.
IOI Portfolio company and Israel geothermal, clean energy play, Ormat (ORA), lands another Nevada deal.
The US Army is looking to invest in Israel water technology. Seemingly, the US Army invests sizable amounts in private equity and one of its funds is on the prowl looking to invest in Israel water technology companies. Read more.
Rumours are again circulating that Gilat Satellite Networks(GILT) is about to be acquired. We reported on this a few months ago and it appears that we actually got one right. Giddy up!Globes is reporting, “that after months of rumors and speculation, Gilatcould be sold in the near future. It is believed that a group headed by Mivtach Shamir Holdings Ltd., one of its current shareholders, is close to signing an agreement for the acquisition of Gilat, after raising its bid to $11.60 per share. The new offer reflects a valuation of $455 million for Gilat, or $483 million fully diluted, and a 14.2% premium over its current market price.
Gilat develops and produces very small aperture terminals for satellite-based communications networks. As my buddy Zack Miller wrote,”Competition in the satellite industry is heating up. Media companies, along with cable and wireless companies, have declared their desire to enter the satellite communications market. Instead of building an entire division dedicated to this, some of these companies are looking to either partner with, or acquire,an existing firm with good sales distribution. Gilat, with its focus on emerging markets and strong balance sheet, could be a good acquisition candidate.”
Disclosure: Author’s fund holds a position in GILT. He has no position in any other stock mentioned as of 1/23/08.
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.
Written by: Aaron Katsman | December 31, 2007
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.
Zack Miller
IsraelNewsletter.com
Jacada (Nasdaq: JCDA), the Israeli software provider for unified customer service, has been murmuring about a material deal back in early August. Israel Opportunity Investor’s Aaron Katsman recently covered the announcement of the deal with Central Hudson Gas & Electric. Well, there’s another material announcement. This time it’s with O2 UK, the leading provider of mobile services to consumers and businesses in the United Kingdom.
Elbit Systems (Nasdaq: ESLT) out with strong earnings Wednesday with a posted 41 percent rise in third-quarter net profit on higher revenues and forecast a better performance in 2008. We chose Elbit as one of Israel Opportunity Investor’s “7 Touchdown Stocks” recently.
Gilat Satellite (Nasdaq: GILT) reported earnings for the 3rd quarter that more than doubled as the company increased revenue and held back costs. We wrote recently about why Gilat might be an interesting play right here.
NICE Systems (Nasdaq: NICE) announced that it has expanded its relationship with DirectTV (NYSE: DTV).
