Aaron Katsman
www.IsraelNewsletter.com

With the NCAA’s March Madness basketball tournament underway, it’s time to correct an oversight by the selection committee. Why is there no Middle East region? Since they neglected to create a bracket for this region, IOIwill provide one. It’s clear that the number one seed in such a region would be Teva Pharmaceuticals(TEVA). The Israeli company is the largest generic drug company in the world, and the largest and most recognized of Israeli publicly traded companies.

But in the spirit of March Madness, it’s no fun going with a number 1 seed. As such, the IOI top pick is an upset special. For investors looking to potentially profit from an undiscovered opportunity in Israel, have a look at Alon USA Energy (ALJ). They are an independent refiner and marketer of petroleum products, in the Southwestern and Western regions of the U.S.  Alon also operates more than 300 convenience stores in West Texas and New Mexico primarily under the 7-Eleven and FINA brand names. Refiners have gotten crushed as the price of crude oil surged past $100/barrel. With the summer driving season approaching margins for the refiners should finally improve. Alon stock is down almost 75% in the last 12 months. Ouch! 

The company operates in perhaps the best geographic region for a refiner. The West and Southwestern U.S. are experiencing population growth and that should increase the needs for refined petroleum products.

It goes without saying that if you are looking for something in the Mid-East you need to think of something oil related. Alon may potentially provide you with the beaten down, upset special stock that will power your portfolio in the future.

Disclosure: Author’s has no position in any stock mentioned as of 3/21/08.

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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Aaron Katsman
www.IsraelNewsletter.com  

With the NCAA tournament’s selection Sunday fast approaching, I need to speak about a different type of March Madness. WiMax leader Alvarion (ALVR) has gotten absolutely crushed, and that’s is pure and utter madness. Alvarion is trading at $5.65 a share and the stock has shed 25% since the beginning of the month. Why? What has so dramatically changed in 13 days? The stock is almost 40% down YTD. Yikes.

Colleague Zack Miller had a great post about Alvarion last month, and today he screamed, in a voice heard throuout IOI corporate headquarters, ” They just did a deal in Kenya, what’s going on?”

While I don’t think it’s accountable for all the recent losses in the stock, the impact that the Israel shekel has on Alvarion shouldn’t be dismissed. The greenback getting slammed this week against the shekel coincided with Alvarion stock falling sharply as well. In fact we highlighted that in our last issue of the newsletter. The company admitted that it is hurt by the weak U.S. dollar compared with the Israeli shekel in a recent earnings call.

Whether WiMax takes hold in the U.S. or not is not so relevant if you ask me. Alvarion is executing their business model quite well in developing nations and this is a nice little growth business, which I think the market has completely forgotten about.

If you are long-term investor, it may pay to have a look at Alvarion at these levels.

Disclosure: Author’s fund holds a position in ALVR. He has no position in any other stock mentioned as of 3/13/08.

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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