With everyone and their mother trying to capitalize on the social networking fad, news came out recently that M.C. Hammer has a start-up to rival YouTube. This may seem like the bankrupt star is jumping on the bandwagon, but I actually think he may do well with his latest project.

"DanceJam.com. is scheduled to debut in mid-January, and will try to upstage Google, Inc. (NASDAQ: GOOG) 's YouTube and become the Internet's hub for sharing and watching dance videos. DanceJam then hopes to make money by grabbing a piece of the rapidly growing Internet advertising market, which is expected to rake in $27.5 billion in 2008, according to eMarketer."

I think this has potential because while YouTube is THE dominant player in this space, the fact that Hammer is specializing on one vertical makes it interesting. If he can get traction and become the site specifically for dance video sharing, this may just work. While we may think the shared content space is saturated, I think it's just in it's infancy. Wait until technological advances enable this type of sharing and social networking over the cellphone. That's just going to be a massive market. There are some Israeli start-ups already close to a product on this. The leader is Vringo.

With Hammer's name and celebrity, he may just be able to pull this off and take some significant traffic from YouTube.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position long or short in any stock mentioned as of 1/2/7.