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.

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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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