Oil prices rose above $142 on a lowered supply estimate and tension between Israel and Iran over Iran's nuclear program.

Oil rose $2.06 to $142.06 per barrel after the International Energy Agency predicted that spare capacity in OPEC will shrink by 2013, keeping the oil market "tight."

Oil bulls were also motivated to hit the buy button after ABC News reported that Israel may attack Iran's nuclear facilities if Iran acquires enough uranium to build a nuclear weapon, citing a Pentagon source who spoke on condition he not be identified.

The other major energy commodities also vaulted higher Tuesday at mid-day on the news. Heating oil rose 8 cents to $3.97 per gallon, unleaded gasoline increased about 5 cents to $3.54 per gallon, and natural gas added 20 cents to $13.55 per million BTUs.

Oil surged $4.27 to $136.20 per barrel Friday after the dollar fell and reports confirmed that Israel had conducted a military exercise that analysts say rehearsed a potential bombing attack on nuclear targets in Iran, Bloomberg News reported Friday.

The other major energy commodities also surged Friday on the news. Heating oil jumped 11 cents to $3.82 per gallon, unleaded gasoline gained 8 cents to $3.43 per gallon, and natural gas climbed 26 cents to $13.12 per million BTUs.

Short-circuited oil sell-off

Under most circumstances, oil rises when the dollar falls, as holders of oil, which is priced in dollars, raise their prices to compensate for the reduced purchasing power of the dollar. The dollar Friday was set to record 3-cent weekly declines against the euro and British pound.

Further, geopolitical events re-entered the oil stage. Israel undertook a major military exercise earlier this month that American officials say appeared to be a rehearsal for a potential bombing attack on Iran's nuclear facilities, The New York Times reported Friday.

Ivanka Trump -- the daughter of comedy icon Donald Trump and a director at his flailing casino company, Trump Entertainment Resorts (NASDAQ: TRMP) -- is back from a trip to Israel where she was scouting out possible investment opportunities.

In an interview with Haaretz.com, she said that it was her first trip to Israel and that she saw tremendous opportunities for investment in Israel. If you care about her opinions on the US market, she feels that "now is the time to buy" and that prices will "go right back up."

It was only a few years ago that the Israeli government established the laws to make real estate investments trusts available there. Excellence Investments' "REIT 1" became the first REIT to trade on the Tel Aviv stock exchange.

Once an Israeli REIT lists its stock on the US market as an ADR, American investors will have an easy opportunity to follow Ivanka into Israel.

A story yesterday in Business Week, A Mideast Valley of Peace discussed how the development of a $3 billion canal from the Red Sea to the Dead Sea is gaining some traction. There is both Arab and Israeli support for the idea which would bring industry, tourism, and most importantly water through desalination plants to a very thirsty location.

According to the report the ambitious project is being energized by 60-year-old billionaire Itzhak Tshuva, who was born into a poor family of 11 who crammed into a single room after immigrating to Israel from Libya in the 1940s. He went on to build a global real estate empire that includes New York's Plaza Hotel, as well as a recently announced $8 billion luxury hotel, retail, residential, and casino complex on the Las Vegas Strip.

Equally important, the project is getting a warm reception in parts of the Arab world. This so-called Valley of Peace is part of a 520-kilometer (323-mile) corridor being proposed by Israeli President Shimon Peres for regional economic development. Peres says he has received letters of support from both Palestinian President Mahmoud Abbas and Jordan's King Abdullah II. And according to Israeli press reports, Saudi Prince Alwaleed bin Talal -- known for his investments in Western icons such as Apple (NASDAQ: AAPL) -- recently told Tshuva that he will support the project through Jordan.

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.

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.

The news today the Israeli defense company Elbit Systems (NASDAQ: ESLT) signed a $40 million deal with the Royal Netherlands Army (RNLA) is not just the latest in a string of new deals for Elbit, but could help the company penetrate the NATO countries as well.

Elbit Systems will supply systems to the RNLA's ground forces that will include enhanced tactical computers (ETCs), incorporating tactical communication devices, and data communication software. The systems will be installed in more then 1,800 of the RNLA's vehicles, including tanks, armoured vehicles, and others. The project involves extensive cooperation with the Netherlands MoD's C2 Support Centre.

Commenting on the deal, Bezhalel Machlis, Corporate VP & General Manager Land Systems & C4I Division, Elbit Systems said: "Winning the tender to supply Battlefield Management Systems to the Netherlands MoD constitutes another step in establishing our position as leader in the C4I fast growing and developing market. Elbit Systems' BMS systems are in use today by over 20 militaries worldwide and we view this contract awarded by the Netherlands MoD, a leading country in NATO, as a springboard to potential future business in this market."

Elbit has been signing deals all over the place, but if they can crack NATO member countries defense budgets, this stock will soar higher.

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 ESLT. He has no positions in any other stock mentioned as of 1/27/08

News that Google (NASDAQ: GOOG) has decided to stop the AdSense partnership with the Israeli Incredimail (NASDAQ: MAIL) has sent Incredimail stock tumbling. The company said that Google is disabling ads to search result pages displayed through the Incredimail account, and in addition that the Company's AdSense account has been disabled. In 2006 and 2007, search revenues powered by Google's AdSense program made a significant contribution to the Company's results.

There is no reason for this move yet and I shudder to think what happened to cause Google to cancel the program. Incredimail stock has been under pressure since the company announced it was going to focus resources on the top line to grow revenues, at the potential expense of short-term profitability. While this is a short-term setback for the internet company, I am sure that it will quickly announce a new partnership. With the stock under $5, this may be the bottom. This is a very interesting company with a cool product. The company still has cash of more than $20 million and the stock has a market-cap of less than $40 million. Keep in mind too that both revenue streams continue to grow. It may yet turn out to be an Incredible story.

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 positions in any stock mentioned as of 1/11/08.

In my day job as an analyst, I hear time and time again the conspiracy theorists, claiming that "the big guys" are out to get us, making it impossible to make money in the market. While insider buying is a good divining stick when analyzing companies, the idea that the institutions and insiders are just sitting, crouching in waiting, to sucker us into making investments decisions just to swipe our money is ludicrous.

While there are certainly cases of misdeed or asymmetrical information, this is not the case. Playing fields are generally level for all parties. That's what the SEC, FINRA and many governing bodies are there for -- to protect investors.

So, I find it interesting to read, on a couple of accounts, about Oscar Pistorius, the double amputee sprinter making a go at qualifying for the 2008 Olympics in China. The NY Times ran a story today that cites that the amazing sprinter may hold an unfair advantage with his prosthetics and may subsequently be disallowed to compete.

Globes is reporting that Israel's Ministry of Communications has approved roll-out of a WiMAX network for Sderot and the Western Negev region.

"The ultimate goal of the project is to enable local citizens to enjoy wireless broadband surfing and to supply internet links to public institutions, among them kindergartens and schools, with state-of-the-art technology," reports Globes.

Intel (NASDAQ: INTC), Alvarion (NASDAQ: ALVR), and 012 Smile.Communications (NASDAQ: SMLC) are all involved in the roll-out. Intel, it seems, has donated numerous laptops for the initiative.

This news all follows on the heels of Sprint Nextel (NYSE: S)'s announcement yesterday about its ongoing WiMAX plans.

I've written before about how Alvarion, a small-cap stock winning lots of WiMAX deals, continues to prove that WiMAX is happening internationally, in spite of U.S. delays in rolling out. I also recently interviewed Zach Scheidt, a hedge fund manager, who has been doing the work on 012 Smile.Communications.

WiMAX seems to be happening, providing investors with opportunities to pick their horses.

Zack Miller the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author's fund owns ALVR as of 1/9/2008.

The U.K.'s Times Online had a story in Sunday's edition asking experts in London for their top ways to make money in '08. Coming in at number 9 was "Israel on the Move."

"British investors have tended to ignore Israel, but its stock market will be thrust into the limelight this year when it is promoted from emerging to developed market status." This is referring to the fact that Israel is up for OECD membership, and if accepted -- and it looks like it will happen -- Israel will join the prestigious organization and be considered a "developed country."

Some pundits have argued that admission into the OECD will actually hurt Israeli stocks as Israel is about 2% of the MSCI Emerging Markets Index, and its share in the global investment pie would fall to 0.2% if Israel is admitted to the developed markets index. What they neglect to mention is that there is a heck of a lot more money under management in developed markets than in emerging markets. So Israel's weighting may drop, but the amount of money available to invest will be substantially more. In addition, don't forget "overweighting." If fund managers believe Israel is an attractive investment destination, then they can overweight their position to a much higher level than 0.2%.

Look out for Israeli stocks 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 has no position long or short in any stock mentioned as of 1/7/08.

Teva Pharmaceuticals (NASDAQ: TEVA) raised its guidance for '07 after Teva launched a generic version of Wyeth (NYSE: WYE) Protonix over the weekend, to the apparent surprise of Wyeth management. It's clear that Teva must have started shipping the drug, and that's why it is raising guidance. Goldman Sachs analyst Randall Stanicky reaffirmed a "Buy" rating on Teva, saying the launch was unsurprising and the company has likely already shipped a decent amount of the generic drug to pharmacies.

This is just the latest in a long line of setbacks for big pharma, as generics continue to scoop up market share of drugs that come off patent. Teva, as the world's leading generic company, continues to grow and has a great pipeline for '08, and as a result the stock should continue climbing as well.

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 in TEVA and is long the stock. Writer has no position in any other stock mentioned as of 12/24/07.

The British Pound sank to new all-time lows against the Euro, as the market is counting on more interest rate cuts in the UK. What is interesting to note that with all the cynics out there saying how lousy the US economy is and that the Dollar is a "has-been" currency, it's not the only major currency to get hit.

This news follows the Bank of Israel raising rates by 0.25%, this move was made in part to slow down potential inflation. The currency markets are at a crossroads. In some countries the dreaded inflation has already arrived, and central banks have no choice but to raise rates. Other countries are doing their utmost to stay out of recession and have relaxed a tight money policy, trying to create more money supply.

2008 promises to be an exciting year in the Forex markets as the inflation/slow growth war is played out among the world's currencies.

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 in any stock mentioned as of 12/24/07.

Continental Airlines, Inc. (NYSE:CAL), like many of its competitors, has suffered through another year of stock declines. Hit by surging fuel costs and a slowing economy, the carrier's stock has declined by almost 50% since the beginning of the year. The airline has done a good job of diversifying revenue sources. More than 40% of revenue is coming from International routes. These routes have become the bread and butter for most carriers as they are typically full of business travelers. Many of my friends fly Continental to Tel-Aviv, Israel, and they also say that it's just packed with businessmen. With a growing global economy this should be a catalyst for Continental. If, and it's a big if, fuel costs decline, this will help drastically improve margins and the stock price will react in kind.

If you are looking at a way to play the global economic growth game, take a look at Continental.

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 in any stock mentioned as of 12/19/07.

Israeli oil refiner, Delek US (NYSE: DK) has been on a tear these past couple days. Oil refiner in Israel? Well, as the joke goes, Moses didn't actually make the wrong turn at the Red Sea. Well, kind of...

Delek US is actually the U.S. arm of an Israeli conglomerate operating in three segments: refining, marketing and retail. The refining business runs at a distillation rate of 60,000 barrels per day. Delek's marketing segment sells refined products on a wholesale basis in west Texas. Its retail segment sells gas as well as operates convenience stores through a network of over 400 company-operated retail fuel and convenience stores.

Citigroup upgraded Delek US earlier this week, pushing the shares up about 10%. Looking under the hood of the upgrade, the Citigroup analyst cited in a note early this week a recently disclosed acquisition of a 34.6% equity stake in Lion Oil toward the end of the third quarter. As the public learns more about Delek's plans, we may see this position serve as a catalyst for the shares in the next couple of quarters.