Written by: Aaron Katsman | August 5, 2008
After sporting a strong earnings report, NDS Group (NNDS) announced that they have raised their offer to take the company private. According to Business Wire: ” … that the independent committee of its board of directors has reached an agreement in principle with News Corporation and two subsidiaries of funds advised by Permira Advisers LLP on a price at which News Corporation and the Permira entities would acquire all issued and outstanding NDS Series A ordinary shares, including those represented by American Depositary Shares traded on NASDAQ, for per share consideration of $63 in cash. The consummation of the transaction would result in NDS ceasing to be a public company, and the Permira entities and News Corporation owning approximately 51% and 49% of NDS, respectively.”
The deal is subject to approval from a host of regulators, shareholders, etc. Initially the deal was to be at $60/share, but with the company producing strong results, they received and opinion from Citigroup Capital Markets (C) who recommended $63 as a fair price.
We wrote back in July how we thought this may be a new trend, taking public companies private. Check out that post, here. The difference in the NDS case is that they are a company who continue to produce stellar results and whose share price has held up, not dropped by 80% like other companies.
Disclosure: Author’s fund has a position in NNDS. He has no position in any other stock mentioned as of 8/05/08.
Please see our Disclaimer HERE.
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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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Written by: Zack Miller | July 1, 2008
This interview was published in its entirety for subscribers of our premium newsletter, Israel Opportunity Investor, the only investment newsletter focused on uncovering opportunities in Israeli stocks traded in the U.S.
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Can you tell us a bit about AudioCodes?
Nachum Falek, CFO: AudioCodes (Nasdaq: AUDC) is a telecommunications firm focused entirely on Voice-over Internet Protocol, or VoIP. We create hardware and systems to connect and secure networks. We are leaders in feature richness and voice quality and have been in VoIP for 15 years, an extremely long time for this nascent market. We are a pureplayer in VoIP unlike some of our competitors who still maintain legacy businesses.
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Written by: Aaron Katsman | June 16, 2008
Aaron Katsman
IsraelNewsletter.com
Israel’s CPI reading for May came in with a rise of 0.7%. This is the highest CPI for May in 7 years. While the number came in at the high end of estimates, it wasn’t much of a surprise. We have been speaking about surging inflation for about a year. I would expect the June CPI number top be strong as well, due to a strengthening US dollar. The USD has a very strong weighting in the index, and in fact over the last year, it has skewed the CPI number down, because the USD has been so weak. Now that it has started to move higher against the Shekel, something that started in June, I would look for continued higher CPI numbers looking ahead.
I look for the Bank of Israel to potentially raise interest rates in order to try and curb the spike in inflation. With local interest rates now at 3.5% , I wouldn’t be surprised to see rates a full 1% higher by the beginning of the fall.
While this continued inflation is going to hurt local fixed rate Israeli bonds, look for Israeli hi-tech to actually benefit from this move (read our analysis).
Disclosure: Author’s fund has no position in any stock mentioned as of 6/16/08.
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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Written by: Aaron Katsman | June 15, 2008
Aaron Katsman
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Shares of technology company Marvell Technology(MRVL), spiked on Friday as rumors swirled about a potential acquisition of the firm at a really sweet premium.
Eric Savitz wrote on the Tech Trader Daily: “Marvell shares are sharply higher this morning on rumors the company might be a takeover target, according to trading sources. The talk is that Texas Instruments (TXN) or private equity firm Silver Point Partners might make an offer; the rumored bid price is $24 a share. That would value the company at $14.4 billion. I repeat: this a rumor, of uncertain validity, so treat it accordingly.”
Not only did the stock price jump but trading in Marvell options also surged. Andrew Wilkinson wrote on SeekingAlpha.com: ” With 80,000 options already in play Marvell ranks early among the most active tickers on our platform, as calls are heavily bought in excess of open interest at the 17.50 strike in the June and July contracts. Premiums are more than 150% higher today at both these strikes.”
We have written about the turnaround taking place at Marvell, and in general we would rather see the turnaround play out, than for the company to accept a buyout offer. But in this case we are taking about a potential premium over 40%. Giddy up! Take the money and run.
Keep in mind that this is only a rumor. Investors should keep an eye on how Marvell options trade over the next few days to try and get an idea if the rumor has any legs. It wouldn’t be the first time that option traders knew something was going on and loaded up the boat for a trade.
Disclosure: Author’s fund has a position in MRVL. He has no position in any other stock mentioned as of 6/15/08.
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.
