Israeli small cap food manufacturer and distributor, G. Willi-Food (NASDAQ: WILC), announced this week that it had signed a binding letter of intent to form a new joint company with the owners of Shamir Salads, an Israeli manufacturer/distributor of prepackaged, chilled kosher Mediterranean dips and spreads in Israel and abroad.
Mr. Zwi Williger, President and COO of Willi Food commented, "The growth and popularity of Mediterranean style foods has grown beyond ethnic food borders and into the diet of mainstream consumers. Shamir Salad's line of kosher Mediterranean hummus, dips and spreads, appetizers, and gourmet specialties are in line with Willi-Food's core kosher and healthy living businesses."
I love my hummus with a large helping of chips while I enjoy watching the NFL on Sundays. I also love small cap companies with juicy growth stories and G. Willi is just one of those companies. Israeli Billionaire Arkadi Gaydamak, who controls a huge egg business in Russia, recently signed a deal with G. Willi to begin importing high-end dairy products (read fancy, stinky cheeses) to the nouveau riche in Russia.
As Kraft Foods (NYSE: KFT) and its competitors look for new overseas markets where business is good and getting better, G. Willi may ultimately be a good M&A candidate for a large multinational food company.
Zack Miller is the lead equity analyst for America Israel Investment Associates, LLC., the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
The author's fund owns WILC as of 11/04/07.
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Reader Comments (Page 1 of 1)
11-04-2007 @ 9:32PM
CrossProfit said...
I dare to say that you and your firm have been pumping this stock since the last Israel Lebanon war.
See 08/25/06: http://seekingalpha.com/article/15965-israeli-smallcap-willi-food-shows-impressive-growth and see http://seekingalpha.com/symbol/wilc for 9 more articles.
With all the pumping, the stock is back to the March 2006 levels. Give it up already or lose credibility!
CrossProfit
11-04-2007 @ 11:08PM
Sheldon L said...
I have had it on my watch list for about eight months but I cannot find anything compelling about it.
It is always important to remember that you should only own as many stocks as you can follow closely and that is a small number perhaps 20 to 30.
More than that and you have your own personal index fund. In a universe of so many stocks and so few worth buying - I do not believe this one will ever be better than all the other opporunities.