The Israeli sector on NASDAQ was interesting yesterday. Eshed Robotec
(ROBOF), the lack of announcements from which concerning its amazing share rise
we noted two days ago, yesterday announced it had received a $10 million order
from the Japanese company Yaskawa Electric for inspection equipment for
electric engine parts. It is estimated that the deal will yield Eshed a profit
of $1.5-1.7 million.
This is an extremely significant breakthrough in sales and profits for a
company like Eshed, but that is not all. The company has invested in a Dutch
start-up called Swapstation. The news was reported in detail on CBS
"Marketwatch" already in November 1999. This is a site that enables users to
"swap" all types of music.
This is an enormous market. While the potential is limitless, and while a
company profit of $1.5 million should make the company's share climb strongly,
now is the time to check it out; the information is sitting on the table.
Teva (TEVA) continues to climb, together with other companies in the field.
We now better understand why the company is recognized as belonging to the
biotechnological field. The explanation is rather convincing. "Teva", we were
told, "has not only entered the development of ethical drugs (Copaxone), but is
a senior partner in Dr. Karmon's private company Peptor. Peptor is currently
moving to the third stage of trials on the subject of diabetes, and the company
is arousing worldwide interest and values.
"We have now heard that an issue is planned in Germany, and Teva is the
leading shareholder. Teva is also a partner in the venture capital fund managed
by Prof. Benad Goldvasser, together with the Arison group, and Teva is known
for its university investments. That is what rightly puts Teva into the
biotechnology category", we were told by a foreign source.
Tefron (TFR) jumped yesterday by 6.3%. "Textiles?", I hear you shout, "Have
you gone crazy?" No, friends, we aren't crazy, but this share is economically
cheap. The textile sector is enormous, and the day will come when the
company will be recognized as a technology company, since that's what it really
is.
ESC Medical (ESCM) achieved a new record yesterday, since its low of under
$4 at the beginning of November, three months ago. Since we have been following
this company closely and have mentioned it a number of times, we will say just
one thing. Yasha Siton is proving his management ability in a big way for the
second time. Aryeh Genger is proving his ability in all sorts of things for the
nth time (we began following him when he took over Haifa Chemicals in the
1980's).
It's management, management, management, and also good products. What is
really pushing the share is the expectation of an improved balance sheet, and
the feeling that the restructuring is being successfully completed. The story
about the appointment of Prof. Frenkel as company chairman didn't sound right.
Perhaps chairman of the advisory council, but company chairman? Together with
his job at Merrill Lynch? We don't think so. In any case, Frenkel, in the eyes
of the world at large, the meaningful part of it, is an enormous asset to ESC
in any post whatsoever. In Israel, of course, he'll be abused, rather than
complimented, but you know who laughs last.
Galileo (GALT) took a 27% dive yesterday. The published fourth quarter 1999
results were excellent, but then came an announcement that the company's
results for the first quarter of 2000 would be similar to those for the fourth
quarter of 1999, and that is considered bad news. Three leading investment
firms lowered their recommendation for the share from "strong buy" to "buy".
Published by Israel's Business Arena on January 20, 2000