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Technology Stocks : ECI TELECOM. ECILF

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To: Marty who wrote (364)9/24/1998 11:22:00 PM
From: Bennett Zimmerman   of 426
 
Trading Israeli stocks since 1991. . .

I think that Israeli stocks trading in the US move with small US hi-tech stocks. Look at the Russell 2000 against the ISX index (a poor, but still one index of Israeli stocks). They have moved in tandem for the past two years.

Israeli stocks are usually early for small stocks. First NASDAQ, then Israelis, then Russell 2000.

Finally, I have not yet seen an Israeli market response to political events in Israel. To economic evetns yes. Lower interest rates and a conservative fiscal policy have helped Israeli stocks over the past two years. Still, world stability is needed first.

One of the best signs lately has been the number of share repurchase announcements and outright acquisitions. Four in just the past few weeks. The paper is cheap; and people are ready to buy.

Patience. Savlanut.

Bennett Zimmerman
Israel Emerging Growth Fund, L.P.
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