Aaron Katsman
IsraelNewsletter.com
The Israeli business daily Globes is reporting that Boeing (BA) has selected a training system made by the Israeli defense contractor Elbit Sysytems (ESLT), to be used in US Navy training.
According to Globes: ” Boeing Co. has selected Elbit Systems Ltd. as the supplier for the US Navy’s T-45 Goshawk Virtual Mission Training System (VMTS)…..The T-45 will replace aging T-39s as a key element in the US Navy’s Undergraduate Military Flight Officer (UMFO) training modernization plan. The T-45 will provide realistic training at a lower cost in a fighter-like environment.”
Elbit Systems has been an IOI favorite for quite some time. The company has continued to sign deal after deal and has a pipeline of almost $5 billion. While the size of the deal wasn’t disclosed, this type of high profile deal is great not only for the company but for shareholders as well. While Elbit has done a phenomenal job of growing the business and creating profits for shareholders, the company still remains under the ‘radar screen’ of many investors. This type of high profile deal involving Boeing and the US Navy, is the kind of deal that can put the spotlight on the company, and create general knowledge to the greater investment community.
This deal could be problematic for those in Seattle (read our post on the issue) that are pushing the city to divest from Israel. A hi-profile Seattle employer that enters into a defense deal with an Israeli company, to help train US Navy fighters. It can’t get worse than that.
Disclosure: Author’s fund has a position in ESLT. He has no position in any other stock mentioned as of 7/02/08.
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 | May 30, 2008
Aaron Katsman
www.IsraelNewsletter.com
Shares in networking chip vendor Marvell Technology (MRVL) are surging on the back of a very strong earnings report. As reported by Tiernan Ray: “sales rose 27% year-over-year to $804 million in its fiscal first quarter ending May 3, beating an average estimate of $784 million. The company’s net income per diluted share of 24 cents, excluding some costs, was almost five times as high as the year-earlier period, and well ahead of estimates of 13 cents per share. Including costs for stock-based-compensation, among other things, profit was 11 cents a share. The company cited stronger than expected sales of “802.11N” wireless router chips, chips for networked disk drives, and printer chips among the sources of higher-than-expected revenue in the quarter. Cost-cutting initiatives helped Marvell boost its gross profit as a percentage of sales to 52%, above the company’s 50% target.”
As colleague Zack Miller posted in December, ” It’s definitely a stock with hair on it. But after taking a recent haircut, it may be an interesting, albeit drawn-out, play.”
How right he was. Giddy Up. It seems that the company’s ambitous turnaround plan has taken hold and we are starting to see the results. Improving margins, the aforementioned launch of the 3G Blackberry, new products and cost cutting all could possibly help the stock get back on track.
As IOI wrote a few months ago, the fact that the former hi-flyer came crahsing down to earth, potentially made for an attractive entry point for the stock. I don’t want to toot our own horn, but with Miller’s Decemeber call and our February post, it’s nice to be right once in a while!
If you are a long-term investor, looking to find a battered tech name that has the potential to make a turnaround, do some research on Marvell.
Disclosure: Author’s fund holds a position in MRVL. He has no position in any other stock mentioned as of 5/30/08.
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.
