Lloyd (and Milo),
I believe the company you were thinking of was "Clal" - another of Israel's huge conglomerates. As part of the Israeli government's privatization program, Clal was purchased by the owners of IDB and Leon Recanati will be taking the helm. Koor should be going through the same process somewhere down the road. Privatized companies are definitely worth watching -- can't say ALL will be successful, but they will be interesting to follow, no doubt.
I fully understand your tendency towards the high-tech companies -- they account for more than 50% of Israel's exports, and the govt. spends more on technology R&D than any other country in the world. Moreover, with 3 times the number of engineers per capita, compared with other countries, the brain power in this sector is superior.
Nevertheless, keep an open mind about other (non-tech) stocks as well -- e.g. Blue Square (a supermarket chain with no exports at all) had an amazing IPO in '96. Also, a hardware/housewares manufacturer and exporter called ZAG is off to a nice start; they were issued in November at $12/share and the stock rose to $17 within 6 weeks. ZAG should do nicely; they're very hungry and eager.
Finally, an important note to all Israeli stock watchers. It's no secret that these stocks tend to take a dive when the political situation gets "hairy." Still, any well-informed analyst will confirm that this is the optimal time to BUY. Bottom line is that many Israeli stocks are a great investment, but this area is NOT for short-term players. |
