The company has had a tough last couple of years, but much of the drop was unjustified. Because of filing problems at Verint's parent company, Comverse Technology (OTC: CMVT), Verint was delisted from the Nasdaq and has been trading on the pink sheets. Its business is growing strongly. It continues to sign deals, highlighted by the recent announcement that the Port Authority of New York and New Jersey will expand its deployment of Verint's Nextiva Critical Infrastructure (CI) solution and integrated analytics at all security checkpoints within LaGuardia and Newark Liberty International Airports.

Verint's problem is with low volume -- institutions are unable to take a position in the stock due to the low trading volumes. We expect these low volumes to continue until parent company Comverse Technology resolves its filing situation. Once this takes place, and Israeli Verint re-lists on the Nasdaq, the stock should move up strongly, as it is trading at just 9.7 times next year's estimates and is also near a 50% discount to competitor NICE Systems (NASDAQ: NICE). I am looking for large returns from Verint in '08.

DISCLOSURE: Writer is long VRNT, NICE, and CMVT as of 12/28/07.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com.

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Some Israeli companies listed on the NASDAQ are having quite the day:

Orckit Communications Ltd. (NASDAQ:ORCT) is a manufacturer of telecommunications networking equipment. ORCT shares are up more than 9% today. Rumors in Israeli newspapers mention the company gaining a new important client in Asia. Market cap: $147.7 million. 52-week range: $6.75-$31.22. Afternoon price: $11.36.

NICE Systems Ltd. (NASDAQ:NICE) shares are up more than 5.5%. NICE makes data recording products for financial institutions and other companies to monitor interactions with their customers. Market cap: $1.1 billion. 52-week range: $21.55-$32.80. Afternoon price: $32.45.