With the market experiencing a continued downturn and with Thanksgiving upon us, I thought we could highlight two stocks that have been turkeys so far this year (dogs maybe be more appropriate, but 'tis the season). However, unlike our favorite bird, these are poised to fly.
Radvision (NASDAQ:RVSN), which specializes in video conferencing over IP and 3G networks, has lost more than 40% YTD. It has produced successive earnings disappointments. While it has great technology, it has been struggling to execute its business plan. It's important to note however, that it has a very close relationship with Cisco Systems Inc. (NASDAQ:CSCO), and every few months rumors surface as to a potential M&A. I think that management has taken the Cisco relationship for granted and hasn't done enough to hustle new business.
That being said, as I mentioned the stock is down over 40% on the year. The company today received permission to purchase up to $30 million in stock. While some may see that as a PR stunt to boost the stock, more interesting was that Yehuda Zisapel, a former Chairman of the Board of RVSN and the brother of the company's current Chairman of the Board, bought $2 million of stock. With the stock getting creamed so far this year, I would look at it as a nice turnaround play going forward.
If we are talking about flying, it's appropriate to include an airline into the mix. JetBlue (NASDAQ:JBLU) is off more than 50% YTD. This has been a year to forget for the airline. From the debacle of last winter at JFK airport where passengers were stranded on a runway for 10 hours, to crude oil hovering around $100 a barrel, things can't get much worse. With a strong travel season underway, the airline announced today two special additions to its complimentary snack line-up for customers flying the low-fare, high-frills airline this holiday season. Through January, JetBlue is bringing back one of last year's customer-favorites, Mamma Says(r) Gingerbread Biscotti with icing, and adding another guaranteed hit: Immaculate Baking Company's Sweet Georgia Brownie(tm) Super Chocolate Chunk cookies, loaded with two kinds of chocolate chips, rich cocoa, pure vanilla and more chocolate.
Okay, while popular snacks are no reason to buy a stock, I do think that if we see the price of crude fall a bit, JetBlue may be a top performer in '08.
Happy Thanksgiving.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer holds stock in RVSN. He holds no position in any other stock mentioned as of 11/21/07.










