Written by: Aaron Katsman | June 30, 2008
Aaron Katsman
IsraelNewsletter.com
With the 4th of July approaching, IOI would like to present a couple of Israeli stocks for your Independence day celebration. As you make the final preparations for your bar-b-que, after buying the hamburgers and the beer, you may consider doing some research and adding these 2 Israeli stocks to your shopping list.
Check Point Software Technologies (CHKP), which is the global leader in internet security, has started focusing on selling higher priced products. The company also just received an upgrade from Lehman Brothers.
According to the AP report: “Israel Hernandez said the Internet security software company is now selling higher-priced branded items and unveiling new products, and he added that demand will remain strong because security is a priority to Check Point’s customers. He said the Redwood City, Calif. company should report strong revenue growth in the next few quarters as it begins selling more appliances.”
He raised his price target to $30, which is more than 25% higher than the current price. We recently speculated as to the potential of Check Point takeover. Even Barron’s followed our lead, and wrote a similar piece. Some of our readers thought that we were spot on and some thought we were nuts. Vote here to let us know what you think.
Shares in ClickSoftware Technologies (CKSW) provider of workforce and service management software products and solutions, have been pounded over the last year. While the company has had a couple of recent earnings misses, they still have the potential to achieve 20-25% revenue growth for ‘08, and recently reiterated their guidance. Keep in mind that this is a micro-cap stock so investors should be able to withstand the volatility associated with ClickSoftware. For investors looking for a Micro-cap turnaround story with a leading technology, you may want to do some research on ClickSoftware.
Happy 4th!
Disclosure: Author’s fund has a position in CHKP and CKSW. He has no position in any other stock mentioned as of 6/30/08.
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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: Aaron Katsman | November 29, 2007
Aaron Katsman
www.IsraelNewsletter.com
G. Willi-Food International Ltd(WILC), one of our favorites here at Israelnewsletter.com, reported a 21% increase in revenues for Q3 ‘07 versus the same quarter ‘06. As expected profit decreased as the company suffered from a drop in margins. The worldwide increase in dairy prices impacted G. Willi’s Q3 gross margins, as they declined to 20% compared to 27% in the same period a year ago.
Mr. Zwi Williger, President and COO of Willi-Food commented, “Third quarter results are in line with our expectations for the period. In this period, nearly all of our shortfalls can be attributed to gross margin decline in our dairy business. As previously stated, Willi Food and the global dairy industry continues to experience cost pressures due to weather related problems, reduced milk production, cessation of EU dairy export subsidies at the same time that consumption and demand for dairy has increased in growing emerging markets. These factors have negatively impacted Willi Food’s near term sales and gross margins on cheeses and other products.”
Mr. Williger continued, “While we believe that this trend shall continue through the remainder of the year, we anticipate that the cost of raw food materials will stabilize by mid-2008. In the interim, we are successfully leveraging our infrastructure, hedging our strategic direction through smart acquisitions and setting the stage for growth in 2008.”
The company continues to grow and we continue to like this for the long-term. With limited volume the stock price is subject to large swings. Long-term investors should keep their eye focused on the long-term regarding this stock. As they continue to execute their business plan, I would expect the stock to continue to move up.
Please see our Disclaimer HERE.
Disclosure: Author has a position in WILC. He holds no position in any other stock mentioned, as of 11/29/07.
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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.
Written by: Aaron Katsman | October 9, 2007
By Aaron Katsman
IsraelNewsletter.com
Jacada(JCDA), a leading provider of unified desktop and process optimization solutions for customer service operations, annouced details on a deal signed in early August. Jacada said that the agreement is with Central Hudson Gas & Electric, a regulated gas and electricity provider serving approximately 367,000 customers in eight counties of New York State’s Mid-Hudson River Valley. Revenue from the contract will be recognized in future quarters.
Since my post on the 19th of September, Jacada stock has moved straight up, much like Don King’s hairdo, and is up over 15% in this 3-week period. Truth be told, back in my wild and wacky college days, I too had an impressive ‘fro like Mr. King, but that’s another story. As I have mentioned in the past, small Israeli companies that are flying under analyst radar, who keep signing deals and executing their business plans, sooner or later catch fire and with small floats, off they go. Keep in mind that with a market cap under $85 million and $36 million in cash this continues to be an attractive play, especially for those looking at up and coming micro-cap stocks.
Please see our Disclaimer HERE.
Disclosure: Author’s fund is long JCDA as of 10/09/07. Author has no positions in any other companies mentioned.
Like what you see? Sign up to receive daily updates from IsraelNewsletter here
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.
