Bottom Fishing in Tel Aviv - Mind CTI (MNDO)

Jan. 9.06 | About: MIND C.T.I., (MNDO)

The Microcap Speculator submits: Most Israeli stocks have taken a hit over the past week as the world watches Prime Minister Ariel Sharon's declining health. I don't mean to be callous with a life in the balance, but I think the fear has created a buying opportunity.

Many of these stocks are dual listed on the Tel Aviv Stock Exchange and the Nasdaq. One Israeli microcap I have been accumulating is Mind CTI Inc. (ticker: MNDO). Mind sells telecom billing software to VoIP, Mobile, 3G and triple-play carriers worldwide. It recently acquired a company called Sentori that focuses on the growing MVNO (mobile virtual network operator) sub-market. Mind has about $.50/share in cash on the balance sheet, is consistently profitable, and is growing revenues. The chart shows a long basing period and strong support around $2.50. This may not be the most explosive stock in the market, but I think the risk/reward is fantastic.

UPDATE: A reader reminds me that Stockcoach is also bullish on MNDO. I think I knew that from my weekend blog review, but in my morning caffeine deficiency failed to give him the tip of the hat he deserves.

I am long MNDO. Not a recommendation to buy or sell any security. For informational and educational purposes only.

MNDO 1-Yr Chart