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Last week I was speaking with colleague Zack “Facebook” Miller about what to do with someone who I didn’t know who asked me to join his network on Facebook. I came across a great post by Nadira A. Hira about this dilemma that we all face: What to do when someone you don’t really want to be associated with, requests you join them on Facebook or Linkedin. As I was reading her post, my friend Steve called me with an equally troubling issue. “We are all familiar with the NBA officiating scandal, but do you think that there is an objectivity problem with the ref’s in professional wrestling?”

Disturbing question don’t you think?

With all these philosophical questions, I was happy to see that MIND CTI (NASDAQ:MNDO), yesterday announced the signing of two large deals in the US. I figured that it’s gotta be a good sign to answer the aforementioned questions, when an e-learning company makes the news!

Well after a little digging it turns out that MIND CTI is a small Israeli company that provides convergent end-to-end billing and customer care product based solutions for tier 2 and tier 3 carriers worldwide. They have nothing to do with e-learning, too bad I guess. As I have mentioned before, when these small Israeli companies start announcing a series of deals, they start to appear on analyst radar screens, and it often portends a nice move to the upside. Many times they are companies either already, or close to being profitable; with small floats and some good PR, off they go.

In the case of MIND CTI they are profitable and made $0.09 for the first half of ‘07. While revenue growth slowed over ‘06, they managed to cut expenses, and actually think that the second half of this year will bring more deals like the ones signed to yesterday.

What makes this most intriguing as an investment is that with a market cap of about $49 million, the company has over $35 million in cash, and that is growing. Cash flow from operating activities in first six months of 2007 was $2.2 million.

Monica Eisinger, Chairperson and CEO, said, “We expect to see new wins in the following quarters and we expect to increase our profitability as well.” For investors looking for a small-cap, undiscovered play, this may be an interesting idea.

Disclosure: author has no position in any of the stocks mentioned as of the writing of this article.

Source: The Long Case For Israeli Smallcap MIND CTI