Now is a good time to "Buy"

Now is a good time to "Buy". Check it out:
(Israel Business Arena Via Thomson Dialog NewsEdge) We have ample experience in the local stock market and listen carefully to the opinions of local analysts. We don't doubt that foreign investment banking firms may have superior analyst abilities. However, their direct contacts with the managements of local companies are minimal. The local analyst may find that he knows several heads of companies as they are his buddies in his reserve unit. The local grapevine is an invaluable supply of information. Some even went to school together.



The local daily press, available in English, is a good source of information. The daily newspapers have Internet web sites that publish the most important news that appears in the printed newspaper.

We believe that now is a good time to invest in Israel and would like to review various avenues open to the investor.

The Tel-Aviv Stock Exchange has several hundred securities listed for trading. The Exchange has a web site (http://www.tase.co.il); prices are posted daily and in near-real time. We favor companies whose activities are international and whose products are internationally recognized.

Most Israel interested investors have heard off Check Point, Converse and Teva but how many know about Aladdin? Aladdin Knowledge Systems Ltd. (Nasdaq: ALDN) is recognized as the worldwide leader in Software Digital Rights Management (DRM) and USB-based authentication solutions. The company, is an innovator in enterprise secure content management (Enterprise Security). Its shares are traded on Nasdaq and the company has just reported record quarterly earnings of $3.59 million for the second quarter. This represents a 73.4 percent growth year-over-year and revenues of $20.06 million, representing 21.4 percent growth year-over-year.

AudioCodes Ltd. (Nasdaq: AUDC:) whose shares are traded on Nasdaq, designs, develops, and markets enabling technologies and system products for the transmission of voice, data, and fax over packet networks. The company's products are unique and its sales are growing as the Voice over the Internet. However, it should be kept in mind that AudioCodes sales are only at the $100m. level and profits are under 3%. The shares are favorably priced at $10 and appear to have good support at that level and upside potential. In the second quarter revenues Increase to $28.5 Million, Up 6% Sequentially and 49% year-over-year. Net Income was$3.1m, or $0.07 per share.

Ormat Technologies, Inc. (NYSE:ORA) is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. It designs, develops, builds, owns and operates geothermal power plants. Additionally, the company designs, manufactures and sells geothermal and recovered energy power units and provides related services. More than 70 patents cover Ormat products and systems. Ormat currently has operations in the United States, Israel, the Philippines, Guatemala, Kenya, and Nicaragua. The company was founded by the Bronickis, husband and wife, and has been managed by them since its inception in 1965.

NICE-Systems Ltd. (Nasdaq: NICE; TASE:NICE) is a vehicle that enables the investor to participate in the burgeoning security industry. NICE Systems (NASDAQ: NICE) headquartered in Ra'anana, Israel, is a leader of multimedia digital recording solutions, applications and related professional services for business interaction management. NICE products and solutions are used in contact centers, trading floors, air traffic control (ATC) sites, CCTV (closed circuit television) security installations and government markets.

NICE's subsidiaries and local offices are based in the United States, Germany, United Kingdom, France and Hong Kong. The company operates in more than 100 countries through a network of partners and distributors.

Other interesting companies, worthy of investment consideration, include CheckPoint (CHKP: Nasdaq) leader in computer protection software, Comverse (CMVT: Nasdaq) messaging, Teva Pharmaceuticals (TEVA:Nasdaq), world's largest generic drug manufacturer and Retalix (RTLX: Nasdaq) computerization at the check out counter.

None of the companies described above are "cheap". Most have p/e ratios of more than 30. However, they are in active in highly exciting technology fields. We were not able to pinpoint neither any biotechnology companies nor those in the medical instrumentation field. Most of the participants in these industries are young companies that have as yet to prove their investment worthiness.

For investors who are prepared to undertake the risks in private equity there are venture capital funds that are prepared to accept investments of $100,000 or more. However, for the greater part, and partially due to the dot.com debacle these have not, for the greater part, outstanding track records.

We believe that a portfolio of the above-described companies would yield above average results.

Published by Globes [online], Israel business news - www.globes.co.il - on October 6, 2005

Copyright 2006 Globes. Source : Financial Times Information Limited.
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