Retalix(RTLX): 3rd Time is a Charm
Written by: Aaron Katsman | December 26, 2007
Aaron Katsman
www.IsraelNewsletter.com
With a new round of rumors swirling around Retalix(RTLX) and a possible buyout could the 3rd time finally be a charm? For a company that every few months gets mentioned as a possible takeover target, you would think that the stock would be doing much better than it is.
Regardless of an M&A the company, down in the $16.50 range actually looks attractive. The recent management shakeup appears to be an effort at re-energizing the company,bringing in younger, fresher blood. The company is on pace to have record revenues. Commenting on last quarter’s numbers, Chairman Barry Shaked concluded, “We are having a record year in sales, and for FY 2007 we expect our total revenues to be above the midpoint of the range of our guidance. We feel that we can still achieve net income at the low end of the range through a few deals that we are working on. The unchanged business fundamentals, the strong demand for our products and our long-term customer relationships support our estimates.”
Regardless of an M&A this is beginning to look like an interesting turnaround story.
Disclosure: Author’s fund holds a position in RTLX and is long the stock as of 12/26/07.
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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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