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Technology Stocks : Aladdin Knowledge Systems (ALDN) -- Ignore unavailable to you. Want to Upgrade?

To: Julio P. Antelo who wrote (150)	11/30/1997 2:16:00 PM
From: Dr. J	Read Replies (1) \| Respond to of 351

is anyone aware of any problems with Israeli companies? (political, currency or financial) First, you guys are incredibly impatient. Many good companies can spend years in the wilderness before being recognized, and when they do there is a huge breakout. Aladdin is a tiny company with inexperienced management which has had one good year (96->97), so I think some patience is in order. Second, they are not in a "hot" industry; software protection is growing at 15-20% a year, so their growth of 50+% needs some explaining (and they need to show it's consistent). Third, the political and economic climate in Israel appears to be unstable. I say appears because I don't think it makes a difference in the long term. However, Aladdin has a big financial advantage with extremely favorable tax rates (<10%) that could evaporate in the future and leave the situation not looking quite so rosy. That all said, I think it's a smart company with several good products whose management seems to be focused well. I'm ready to sit on this one until they are a $100m company (that's their goal by the Year 2000 according to the CFO). Anybody else got enough patience :)