The Israeli "Four Horsemen"

With Jim Cramer, the “Booyah” man himself launching a Chinese version of his "Four Horsemen," I felt it appropriate that we should also have an Israel version. So back up the truck into the stable, and let’s unveil the Israeli "Four Horsemen:"

Teva Pharmaceuticals (TEVA), the world’s largest generic drug maker is money in the bank. With a great pipeline for ‘08, Teva looks like Seattle Slew galloping towards the triple crown.

Checkpoint Software (CHKP), who produce information technology security hardware and software, has put together a run of good earnings, and raised guidance looking ahead to the future. The security space is hot, and IBM’s (IBM) comment last week, that it is looking to make a big acquisition in the space makes Checkpoint a stock to own.

Elbit Medical Imaging (EMITF), the real estate and bio-tech company has provided huge returns for investors in ‘07, and I look for the trend to continue for years to come. Even though CrossProfit makes an excellent point that it needs to change the name, the company is intriguing. In addition to its eastern European and Indian real-estate holdings, the company also owns very large stakes in two of the most exciting private (though an IPO is definitely in the cards) companies Israel has to offer.

These two companies are:

Insightec Ltd., which develops a product that combines MRI technology with focused ultrasound in order to treat serious diseases such as bone, liver and brain tumors, without the invasive procedures that are currently in use. Elbit Medical owns over 50% of Insightec, and some analysts think that an IPO valuation of close to $1 billion is a very real possibility.

The other private company is Gamida Cell. Gamida Cell is developing, along with the aforementioned Teva, a line of cell therapy products for the treatment of such diseases as leukemia and lymphoma.

Ormat Technologies (ORA) engages in the geothermal and recovered energy power business, and produced a 13% rise in net income. While alternative energy is all the rage, Ormat is actually producing results. Factor in rumors swirling about an M&A, and Ormat makes for a good bet looking forward.

Disclosure: The author has a position in TEVA, CHKP, EMITF, and ORA as of November 7, 2007.

Comments

[Private Trader:]

Aaron / Anyone who might know... Would you please provide your perspective on whether or not EMITF is likely to issue a dividend this year? Do you know if they issue quarterly or annually? I didn't see anything on the company website regarding any dates or even whether dividends are a regular practice. Thoughts?

Jan 24 12:38 AM