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.
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.
Written by: Zack Miller | October 30, 2007
Zack Miller
IsraelNewsletter.com
As we’ve said repeatedly, Israel has a stable of really interesting microcap/smallcap companies trading under most investors’ radars. Cimatron (CIMT) is one of these plays worth a look.
Sporting a micro-cap of less than $25M, Cimatron provides investors with a profitable microcap with cash on the books, poised to see some nice growth in the future. CIMT competes in the competitive CAD/CAM space for the tooling and manufacturing vertical. As much of manufacturing is pushed offshore, Cimatron continues to see nice growth from foreign markets — so much so, that they’ve purchase two tranches of their Italian distributor, Microsystem, with a call option to purchase the remaining shares.
Cimatron was up almost 15% yesterday (and over 125% on the year) off of the strength of their conference call, held in China.
I thought it’d be useful to highlight some points from the conference call that got the market excited.
- Microsystem had $10.5M in revenue in 2006 and poised to continue to grow profitably. Looks like earnings will become accretive in Q32007.
- Launch of Cimatron 8.0 appears to be really interesting for the company, as it positions them in a new market, the die design market. The company expects organic growth from this new target market in the quarters ahead.
- In terms of geographical sales, CIMT sells 57% in Europe, 23% in the Asia Pacific, 12% in North America and 8% in the rest of the world.
- The company said that they are focused on increasing shareholder value. Look for some more M&A in the future.
Interesting little play deserving doing the work.
Disclosure: Author’s fund has no position in any stock mentioned as of 10/28/2007.
Please see our Disclaimer HERE.
Like what you see? Sign up to receive daily updates from IsraelNewsletter here.
*******************************
Zack Miller is the lead equity analyst for America Israel Investment Associates, LLC. and a former equity analyst for a leading multinational hedge fund. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email zack@profile-financial.com
