We've written about Incredimail (NASDAQ: MAIL) before. You know Incredimail: that cool, profitable internet company with those great smiley faces embedded in email, cool screen savers, and cool chat client?

The company just takes software programs and activities we take for granted -- and makes them fun.

We've written about the small cap's travails with partner Google Inc. (NASDAQ: GOOG), and the on-again, off-again partnership that threw the stock for a ride a couple weeks back. The company uses Google to help monetize traffic on the site and the loss of Google as a partner was enough to whack the stock.

Though we still don't know exactly what happened, IncrediMail (NASDAQ: MAIL) announced today that it has been re-instated by Google (NASDAQ: GOOG) as an AdSense Online customer. As a reminder, about two weeks ago, in a shocking announcement, IncrediMail was let go by Google as an AdSense customer. In response, IncrediMail stock has gotten crushed. Though Q1 '08 is sure to be bad, as AdSense is a major revenue driver for the Israeli company, I would expect them to get back on track moving forward.

"We are pleased to be able to resolve this setback so quickly and in such a positive way," said Yaron Adler, IncrediMail's CEO. "Google's co-operation in re-instating our account, together with the feedback we've received from other search engine companies, makes us more optimistic than ever regarding the potential of the search business to drive our results, validating our long-term growth strategies."

While I think that there are still problems at the internet firm, after what it did to get shut down in the first place, at current levels the stock actually looks attractive.

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 positions in any stock mentioned as of 1/21/08

News that Google (NSASDAQ: GOOG) has cut off Incredimail (NASDAQ: MAIL) from its AdSense program and that Adsense revenues "made a significant contribution to the company's results" caused a 37% drop in MAIL stock price. This is just the latest example of why you MUST learn to trust stock charts instead of corporate management. Remember this interview the CEO gave less than one month ago?

When I first saw how rosy a picture the CEO was painting as compared to Incredimail's incredibly downtrending stock chart, I was inspired to write this article. But with this latest news, I must disagree with my fellow BloggingStocks bloggers from IsraelNewsletter.com, specifically Aaron Katzman's latest post. Buying this stock here is just as risky as buying 50% off sushi; yes, it might be a bargain, but it could also be very dangerous to your investment health.

After all, there is a definitive reason for this plunge. When a company is dropped by Google, it's basically an indictment by the Supreme Court of the Internet. To make matters worse, remember that the CEO said, "We can find a way to promote suggested searches and ultimately, as our search traffic increases, negotiate a better deal with Google. We've just started optimizing our search revenues." Wow, now they are so totally busted! And thanks to the that now infamous interview we now know that advertising and search, "... accounts for almost 46% of our revenue," a figure noticeably absent from today's press release.

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.

Ever see those smiley faces your friends and family may append to their email messages? Well, the leader in the space is a publicly-traded Israel firm named Incredimail (NASDAQ: MAIL). We, at Israel Opportunity Investor recently had a chance to sit with founder and CEO of Incredimail, Yaron Adler.

Tell us about your company.

Yaron Adler: Incredimail is an Israeli company, founded in late 1999. Incredimail is our flagship product for email. The product allows users to customize and personalize traditional email communication in a way that brings life and excitement to applications they regularly use. We enable you to send emails with 3D effects, funny animations, and customized backgrounds. We aren't re-inventing the wheel. We take existing applications, like email, and make them fun to use.

Do you have any other products?

YA: We are continuously looking for existing, successful consumer markets, and then we try to bring fun to these markets. Email, Magentic, (our desktop and screensaver application), our soon-to-launch messenger product and social network, we're launching Q1 2008, called Incrediworld. This product will not only be completely tailored for Incredimail users and products but also act as a fully-fledged social network.