Among the Israeli companies that I hold in my portfolio tracked by "Globes", there are two whose shares have rocketed recently - Fundtech Ltd. (Nasdaq: FNDT; TASE: FNDT) and ClickSoftware Technologies Ltd. (Nasdaq: CKSW).
In late March, I had already noted the increased interest in ClickSoftware, but it turns out that since then it has continued a rise, amid higher than usual turnover. In 2009, it has risen over 121% without any major announcement. The high turnover implies that institutional investors are getting into it, but we'll only find out the reason for that over the coming weeks.
It seems that the sale of ClickSoftware is again an option being considered, as it was in the fall of 2007, when the share price rose to its all time high of $7. That year, management changed the company's regulations so that a change in ownership requires a majority of over 50% of shareholders, instead of 75% as is set up under the Israeli Companies Law. At the time, the move set off a wave of speculation about the possible sale of the company, with companies like IBM and SAP being mentioned as possible buyers.
On the other hand, it could be that the share price rises are related to stronger business activity, which we will hear about in the results, and accompanying guidance, that the company will release in early May.
In the middle of February, Fundtech shares collapsed to a multi-year low of about $5 due to poor results and guidance, but since then they have risen 88% without any special announcement or recommendation. However, in contrast to ClickSoftware, share turnover has been very low. One year ago, Nochi Dankner's Clal Industries took advantage of the share's drop from a record of around $17, and initiated a purchase offer at $12.50 a share, and increased its holding in the company to 56%.
It may very well be that whomever is adding to their holding in recent weeks, believes that at the current price level of $5-10, Danker may very well launch a new partial purchase offer to increase its controlling share, or will launch a purchase offer for all outstanding shares and delist the company.
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2009
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