Investing guru Warren Buffett shocked the investing world exactly two years ago when he plunked down a cool $4 billion on an Israeli company, Iscar, that specializes in metal cutting tools. It was his largest international purchase by far, and investors were left wondering what he was thinking.

Well, flash forward to May '08 and once again Buffett appears to be a genius. As reported by Marketwatch: "Buffett said that he had very high expectations when Berkshire struck the deal, and that the metal-cutting-tool maker has "exceeded that in every way."

"It's been a dream acquisition," he said.

Since that acquisition, Israel has become a hot destination for foreigners to invest. The local stock market has been one of the best performers in the world and the Israeli currency, the Shekel, has surged to record highs and has been the second strongest currency in the world in '08.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 5/1/08

As Joseph Lazzaro wrote earlier today, oil prices were surging once again in today's market, and traders set a new record, pushing prices up as high as $114.08 today.

Fueling today's rally were concerns over global supply, as news spread that Russian oil production has fallen this year. This is the first time in a decade that Russia is seeing a decline in its production.

Russia is not the only country making headlines. We were also given the news that China had a massive jump in its diesel oil imports last month of a remarkable 49%. So, we are being given both the news that Russia is producing less, while China is demanding more; the perfect recipe for a strong day for oil prices. Other oil producers, Mexico and Nigeria, announced that they had temporarily shut down some of their production as well.

Readers of IsraelNewsletter.com know that one of the Israeli firms we follow is Gilat Satellite (NASDAQ: GILT). In fact, my colleague Aaron Katzman and I have featured Gilat here on BloggingStocks and gave a synopsis of what we felt was the long case for Gilat.

We've speculated for months that Gilat was about to be acquired for a premium over its current stock price. The Israeli communications provider has been very active from a sales point of view, landing deals with the U.S. Postal Service, building a network for Verizon (NYSE: VZ) and expanding its global distribution. It had turned down offers earlier last year. Prominent hedge fund, York Capital, owned a big chunk of Gilat's debt, which it converted into stock last year, making it a 30% holder. Pretty bullish signal for Gilat.

Well, the firm announced that it is to be acquired by a group of investors for $11.40/share recently. I'm blogging this less as giving us a pat on the back (though, it does feel good to get one right) but to point out an interesting part of the deal.

The deal isn't supposed to close for another six months or so. Interestingly, in a squirmy market, this stock is trading almost 7% down from its acquisition price. A 6% return for six months, or an annualized 12%, isn't a bad return if you think the deal is going to go through. I won't handicap this deal, but the consortium appears serious about its offer and its ability to get the deal done. In a bad market, it's very possible that a deal like this falls through. We saw a similar thing occur with ECI Telecom, an Israeli buyout last year, that traded almost 10% below its purchase price leading right up to the deal.

Worth taking a look and doing the research.

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

I've focused some of my writing and research on these pages on the hype surrounding WiMAX, an emerging telecommunications technology that could make broadband wireless access a reality. Some of the best WiMAX technology in being developed in Israel by firms like Alvarion (NASDAQ: ALVR) and Ceragon (NASDAQ: CRNT). In spite of on-again, off-again news coming out of big players like Sprint Nextel (NYSE: S), my thesis has always been that we can debate all we want as to whether WiMAX will hit in the U.S. The truth is that WiMAX is already happening in the rest of the world.

MarketWatch is out with a story this morning about some of the action happening in the telecommunications space surrounding WiMAX. In Big investments rumored for wireless technology, MarketWatch reporter, Therese Poletti takes the usual tack by pointing out both sides of the argument that WiMAX "is full of potential to drive cheaper, high-speed wireless data, voice and video communications, or a dismal failure, depending on who you talk to."

The same article cites a spokesperson for chip-giant, Intel (Nasdaq: INTC), as saying that Intel "remains bullish on WiMAX, saying the technology is definitely 'ready for prime time.'"
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With the pervasive use of computers in our lives, the line between what's mine and yours sometimes gets blurred. I read an interesting post on TechDirt today that describes a patent that Big Blue, International Business Machines Corp. (NYSE: IBM) was awarded. The article, entitled "IBM Patents Real-Time Auto Insurance Surcharges," describes the patent as "Location-Based Vehicle Risk Assessment System, which describes how surcharges will be added to your auto insurance premium when a GPS device reports that you drove into an area in IBM's bad neighborhood database."

While this certainly sounds invasive, it's part of a larger trend in the insurance industry that actually benefits us consumers. In fact, I've written before about Pointer Telocation Limited (Nasdaq: PNTR), a small Israeli firm that markets technology similar to that of Lo-Jack's. In my interview with the Pointer Chairman, Yossi Ben Shalom told investors about a project underway in the U.S. called "Pay as You Go," in which insurance companies are testing programs with technology providers like Pointer that would revolutionize the auto insurance industry.

According to Ben Shalom, "Some people in the industry are talking about a discount or incentive program to build insurance policies on a multitude of parameters. Instead of just selling a policy based on the collective risk profile of the insured, "Pay as You Go" would calibrate premiums on a month-to-month basis based on specific data on how and who drove the car. Imagine a policy that didn't charge a family with a 16-year old driver when he didn't drive the car that month. Which roads the insured drove on, who drove the car, when the car was driven – all this data can be supplied via Pointer equipment to an insurance firm. There are some small pilot tests going on currently which we are involved in. Right now, we're talking about a very small percentage of the overall market but this could be a big driver for Pointer in the future because you need our technology for this."

Looks like IBM wants to get in on a project that could ultimately lower our auto insurance premiums. Clearly, no one wants their insurance company or anyone spying on them but with the right incentives and consumer protections, this new technology and new program could be great, no?

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

"T. Rowe Price Africa & Middle East Fund (TRAMX), is an interesting and intriguing addition to our "Master Aggressive Portfolio buy list," says Mark Salzinger.

Here, the long-standing mutual fund expert and editor of No-Load Fund Investor reviews this fund, which focuses on markets in which it is often difficult for investors to research and buy individual stocks.

"Stocks in Egypt and the Oil-producing Gulf Cooperation Council Countries including the United Arab Emirates, Qatar, Oman, and Bahrain currently account for the vast majroity of the assets in this fund. Sub-Saharan Africa accounts for much less, though South African stocks currently account for about 7% of the fund.

"Launched last September, Price Africa & Middle East is attractive for several reasons. First, it is one of the very few avenues for investors by U.S. investors into some of the richest oil-producing countries of the Middle East, a region that provides considerable opportunities for substantial stock price appreciation.

Israeli start-up Eyeblaster announced that it has filed a prospectus for an IPO, and though not in the filing, it is believed that it is looking to raise an amount north of $100 million. Eyeblaster operates in the field of online advertising, developing technologies to manage online campaigns.

This is a space that saw seen some big acquisitions recently. Microsoft (NASDAQ: MSFT) bought aQuantive for around $6 billion, and Google (NASDAQ: GOOG), bought DoubleClick for over $3 billion. Eyeblaster has some big customers, two of them are particularly interesting. Both Yahoo (NASDAQ: YHOO) and Time Warner (NYSE: TWX)'s AOL are customers as well as players in this space.

With online advertising growth rates slowing, there is a big need to optimize marketing campaigns, and that is why we have seen consolidation in the industry. Everyone is gunning to take market share from Google and Microsoft. The planned Eyeblaster IPO will raise the stakes even higher, as it will use the money raised to continue to grow both its business and its product suite. If Eyeblaster succeeds, don't be surprised to see an AOL or Yahoo acquisition of Eyeblaster in the near future.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 3/12/08.

Gilat Satellite Networks (NASDAQ: GILT), a small Israeli company that develops and produces very small aperture terminals for satellite-based communications networks, posted very strong earnings today.

Gilat's Chief Executive Officer and Chairman of the Board Amiram Levinberg said, "The quarterly and annual results show a thriving core business, with record quarterly and annual revenues. We met our management financial objectives for 2007 with double digit revenue growth of 14% and, excluding the non-cash impairment, an expansion of our operating margin to 6.2% and net income margin to 7.9%."

"Our GNS business unit has grown by winning large projects in Africa, Eurasia and Latin America. In the U.S., Spacenet, has successfully penetrated the government market with new deals in this sector as well as in its core customer base of enterprises. In the fourth quarter, we introduced our SkyEdge II, an advanced VSAT platform based on next generation technology. The product has already begun to receive high market acceptance and enhances our technology leadership in the market. Based on this technology platform, our strong position in the international market and our successful penetration into new markets in the U.S., we are well positioned to continue our growth and meet our management financial objectives for the coming year."

At their investor day, Teva Pharmaceutical Industries Ltd. (ADR) (NASDAQ: TEVA), the world's largest generic drug maker, said that they expect to double revenues over the next 4 years. Teva predicts that they will grow faster than the generic market. While that is interesting in its own right, their view on the generic market in general is astounding.

"By 2012, Teva expects to have 30% of the U.S. market for generic prescriptions, up from about 20% now. Over 75% of U.S. prescriptions will be filled by a generic by 2012," the company said.

Wow! Three out of every four prescriptions will be filled by a generic in just four years from now. That's huge. If that is indeed the case Big-pharma needs to look out. Where are their profits going to come from? Even the big Bio-tech players are squirming over the possibility of bio-generics.

Stocks to Love
Forget flowers and chocolate this Valentines. Make money instead with these five stocks. They include Garmin, Lab Corp. of America, Nike, Precision Castparts and Tata Motors.
Stocks we love - CNNMoney.com


Who Will & Won't Be Getting a Tax Rebate
Excited about the economic stimulus package? Here are FAQs on who will get Treasury checks in their mailboxes.
Tax rebate FAQs-Bankrate.com


Most Outrageously Prices Items
Would you pay $40 for a bottle of water, $11,300 for a pair of jeans, $750 for a facial or nearly $6,000 for a toilet? These are just few of the highest priced items for a number of products.
The Most Outrageously Priced Items - Forbes.com

News that Google Inc. (NASDAQ: GOOG) is adding more e-mail security and storage products for businesses helped send the stock of Commtouch Software Ltd. (NASDAQ: CTCH), an Israeli email security firm, higher by 7%. The tools to be introduced Tuesday build upon technology that Google acquired last year when it bought e-mail specialist Postini Inc. for $625 million. The package of products are designed to weed out junk mail and potential viruses as well as protect against leaks of confidential information sent through e-mail. Google also is offering to retain e-mail data for longer periods.

This move into email security is seen by some as a salvo against rival Microsoft Corporation (NASDAQ: MSFT). Why does this impact Commtouch? Because the firm has some of the most cutting edge email security out there, and could be an acquisition target by Microsoft, or even by Google to help enhance their offerings. For Microsoft this purchase would come with a price tag of less than $45 billion, as Commtouch trades with a market cap of just $120 million.

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 a position and is long CTCH stock. He has no positions in any other stock mentioned as of 2/5/08.

In what's becoming more and more common, a small Israeli company Silicom Ltd. (NASDAQ: SILC) announced that it has received a $1.8 million order from one of China's largest domestic server companies, representing its first significant penetration into the vast Chinese market. The order is for production quantities of Silicom's advanced fiber multi-port Gigabit Ethernet adapters scheduled for delivery during the first quarter.

"We are excited to achieve this significant initial penetration of the strategic Chinese market," commented Shaike Orbach, Silicom's President and CEO. "China's rapid growth represents a huge new opportunity for Silicom, especially the fact that its server usage is growing in step with the phenomenal development of its telecom, transportation, banking and other sectors. In fact, according to CCID Consulting, more than half a million x86 servers were sold in China in 2007, with additional strong growth projected for 2008."

Silicom stock is up strongly on the news. Silicom is the latest Israeli company to break into the Chinese market, and I would expect the trend to continue. With Israeli Venture Capital firms doing joint ventures with Chinese investment firms, we should see more and more hi-tech deals being signed between the two countries.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has a position and owns stock in SILC and is long the stock.He has no positions in any other stock mentioned as of 2/4/08.

Most people think the Super Bowl will be about just the Patriots and the Giants squaring off against each other. For the Israeli company Radvision Ltd. (NASDAQ: RVSN), the actual game will be an afterthought. The small company that has a cutting edge video-conferencing technology will be playing an important role in the Pre-game show.

It was announced that along with LifeSize Communications, Radvision, will connect NFL stars in Phoenix and U.S. Army soldiers stationed at Fort Lewis, Washington during Super Bowl XLII using high definition video communication systems.

"Even football stars have heroes, and the players have tremendous respect for our nation's men and women in uniform," said Coach Charles Hatcher.

Shares in Israeli security company Magal Security Systems Ltd. (USA) (NASDAQ: MAGS) closed up over 17% today on the news that the company has signed a series of deals worth over $45 million. This is huge for a company with a market-cap of $74 million.

Magal develops, manufactures and markets computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. The products are used to protect national borders, airports, correctional facilities, nuclear power stations, and other sensitive facilities from terrorism, theft and other threats.

Magal stock was down almost 60% until last week, when a bottom seems to have been hit. Over the last week the stock has surged almost 40%. This little Israeli company is at the forefront of the physical security space, and with what appears to be a very strong pipeline, Magal looks very interesting going forward.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC, and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has a position and owns stock in MAGS and is long the stock. He has no positions in any other stock mentioned as of 1/30/08.

While investors on the west side of the Atlantic lament the corruption in the U.S. banking system, it could be that the French system takes home the gold medal. Reports out of the Paris prosecutor's office indicate that rogue trader Jerome Kerviel told investigators, "I can't believe that my superiors were not aware of the amounts that I was committing, it is impossible to generate such profits with small positions."

If this is true, and SocGen knew what was happening all along, then former CEOs like Citigroup's (NYSE: C) Chuck Prince and E*Trade's (NASDAQ: ETFC) Mitch Kaplan will look like choir boys in comparison.

One company that has actually gained from all of this, especially on the heels of the SocGen announcement, is the Israeli security company NICE Systems (NASDAQ: NICE). They recently purchased a company called Actimize which has a anti-fraud product for banks, to help prevent situations like this recent debacle.

What to make of all of this? There will always be banks, and they will always get a little too piggy and screw things up. It's NICE to know that there are some company's out that can try and reign in these guys and save the investor some money.

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 a position and is long NICE and ETFC. He has no positions in any other stock mentioned as of 1/29/08.