Written by: Aaron Katsman | September 26, 2008
” A friend of the family” - that used to be the slogan for WaMu back in the day when it was a small community bank. My first passbook account was with the company, and I remember taking my hard earned ( not really but that’s another post) paper route money, that I managed to collect from subscribers, and deposit it in the bank. The smile I would receive from the teller is still ingrained in my memory, as she would make some kind of comment about how much money I made this month, and she hoped I would make even more the next month.
That was about 25 years ago. Apparently not much had changed with the bank as customers were still greeted with a smile and left with the blessing that hopefully next month they will be depositing even more money. 25 years ago the smile was genuine, today the smile was a bit more sinister. When a bank lends money to customers who clearly have no means with which to pay back their loan, about the only way the client will be able to afford to keep his house is through a prayer. For WaMu the prayers weren’t answered.
If you want to focus on the ‘greater’ economy, then the failure of WaMu, is a good thing. After all, any company that acts totally irresponsibly and without accountability should be left to go bankrupt. But for me personally the end of WaMu is sad, and it closes another chapter of my youth.
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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.
Aaron Katsman
IsraelNewsletter.com
The Israeli business daily Globes is reporting that Boeing (BA) has selected a training system made by the Israeli defense contractor Elbit Sysytems (ESLT), to be used in US Navy training.
According to Globes: ” Boeing Co. has selected Elbit Systems Ltd. as the supplier for the US Navy’s T-45 Goshawk Virtual Mission Training System (VMTS)…..The T-45 will replace aging T-39s as a key element in the US Navy’s Undergraduate Military Flight Officer (UMFO) training modernization plan. The T-45 will provide realistic training at a lower cost in a fighter-like environment.”
Elbit Systems has been an IOI favorite for quite some time. The company has continued to sign deal after deal and has a pipeline of almost $5 billion. While the size of the deal wasn’t disclosed, this type of high profile deal is great not only for the company but for shareholders as well. While Elbit has done a phenomenal job of growing the business and creating profits for shareholders, the company still remains under the ‘radar screen’ of many investors. This type of high profile deal involving Boeing and the US Navy, is the kind of deal that can put the spotlight on the company, and create general knowledge to the greater investment community.
This deal could be problematic for those in Seattle (read our post on the issue) that are pushing the city to divest from Israel. A hi-profile Seattle employer that enters into a defense deal with an Israeli company, to help train US Navy fighters. It can’t get worse than that.
Disclosure: Author’s fund has a position in ESLT. He has no position in any other stock mentioned as of 7/02/08.
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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.
