Written by: Zack Miller | July 1, 2008
This interview was published in its entirety for subscribers of our premium newsletter, Israel Opportunity Investor, the only investment newsletter focused on uncovering opportunities in Israeli stocks traded in the U.S.
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Can you tell us a bit about AudioCodes?
Nachum Falek, CFO: AudioCodes (Nasdaq: AUDC) is a telecommunications firm focused entirely on Voice-over Internet Protocol, or VoIP. We create hardware and systems to connect and secure networks. We are leaders in feature richness and voice quality and have been in VoIP for 15 years, an extremely long time for this nascent market. We are a pureplayer in VoIP unlike some of our competitors who still maintain legacy businesses.
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Written by: Aaron Katsman | April 30, 2008
Aaron Katsman
www.IsraelNewsletter.com
Shares of Audiocodes (AUDC), an Israeli provider of Voice over IP (VOIP) technology, are surging on the heels of a strong earnings report. The company reported record earnings, an indicated strong growth for the remainder of this year as well as for 2009.
This small VOIP company has long been overlooked by the financial community, but the fundamentals make this an interesting play for long-term investors.
The company has a PEG of less than 0.6, and has over $137 million in cash and cash equivalents. Audiocodes has a market-cap of $177, which means that it’s trading at a discount to revenues as well. Throw in a 4,000,000 share buyback and this could be a sleeper.
Investors should be aware that for the last 3.5 years, shares in Audiocodes have gone in just one direction, straight down. With that being said, today’s report, potentially, maybe the jump-start needed to break the downward spiral, and be the catalyst to help propel shares going forward.
Disclosure: Author’s fund has no position in AUDC, fund has no position in any other stock mentioned as of 4/30/08.
Please see our Disclaimer HERE.
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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.
Written by: Zack Miller | October 28, 2007
Zack Miller
IsraelNewsletter.com
It’s great when you read about your own service provider going public. It’s a tremendous feeling of accomplishment as a consumer when you think your well-spent dollars have helped propel your ISP into the big leagues. So I read with excitement today that my ISP, 012 Smile.Communications (SMLC) is gearing up for an IPO this week.
SeekingAlpha has a short write up on the IPO. I love Smile’s service — I love their logo (cure little smiley a la Incredimail (MAIL)). At first blush, I don’t love the IPO. 40% yoy revenue growth off the back of a 60% rise in cost of revenues. Not a particularly jiggy biz in my mind.
In fact, it hearkens to the same discussion we’ve raised before at IsraelNewsletter.com about the interest in investing in native Israeli service providers: where’s the growth? Read Aaron “Buy Everything” Katsman’s write up on Israeli cellular leader: Cellcom (CEL). Aaron’s pretty tough on CEL and explains that growth is going to eventually have to come from international expansion. The same will probably hold true for SMLC.
I’m reserving my smile for now on 012 Smile.Communication’s IPO. Let’s watch how the market receives the new offering.
Disclosure: Author’s fund has no position in any stock mentioned as of 10/28/2007.
Please see our Disclaimer HERE.
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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
