12 Top Israeli Stocks

Last year I wrote an article about the highest yielding Israeli stocks. Earlier this month, Israel celebrated its 60th anniversary, and this might just be a good time to take a second look. Here are some interesting facts about the country:

It is ranked 22nd in per capita Gross Domestic Product.

It is ranked 23rd in terms of the Human Development Index.

It is the foreign country with more stocks listed on NASDAQ than any other country.

Warren Buffett purchased Iscar, an Israeli toolmaker for $4 billion.

The Tel Aviv 100 Index was up about 150% over the last five years.

Intel (INTC), Cisco (CSCO), IBM (IBM), Microsoft (MSFT), Motorola (MOT), Lucent (LU), and Oracle (ORCL) have made major investments in Israel.

All of the following stocks have market caps above $300 million:

Alvarion (ALVR) is a provider of WiMAX and non-WiMAX wireless broadband systems throughout the world. The stock has a P/E of 47 and a PEG of 1.87.

Amdocs Ltd. (DOX) is a provider of communications software and services. Although the company has its headquarters in Missouri, it has major operations in Israel. The stock has a P/E of 18 and a PEG of 1.04.

Blue Square Israel Ltd. (BSI) is an operator of Israeli supermarkets. The stock has a P/E of 12.5 and a yield of 10.50%.

Ceragon Networks (CRNT) makes and markets point-to-point wireless backhaul solutions. The stock has a P/E of 26.

Check Point Software Technologies Ltd. (CHKP) develops and sells security software. The stock has a P/E of 18 and a PEG of 1.45.

Elbit Systems (ESLT) manufactures and markets defense systems and products. The stock has a P/E of 31 and a PEG of 1.95 , with a yield of 1.30%.

First Israel (ISL) is a closed-end fund that invests in Israeli equities. The stock has a P/E of 4.5 and a yield of 1.90%.

Given Imaging (GIVN) manufactures and sells diagnostic products used to detect disorders of the gastrointestinal tract. The stock has a P/E of 33 and a PEG of 3.91.

NICE Systems (NICE) develops and sells integrated, scalable multimedia digital recording platforms and operational risk management software solutions. The stock has a P/E of 52 and a PEG of 0.93.

Ormat Technologies (ORA) is involved in the geothermal and recovered energy power business. The stock has a P/E of 46, a PEG of 2.03, and a yield of 0.40%.

Partner Communications Co. (PTNR) operates a mobile telecommunications network. The stock has a P/E of 13, a PEG of 1.84 , and a yield of 6.10%.

Teva Pharmaceuticals (TEVA) makes and sells pharmaceuticals including Copaxone for multiple sclerosis and Azilect for Parkinson's disease. The stock has a P/E of 22, PEG of 1.05, andyield of 1%.

Zoran (ZRAN) is a provider of integrated circuits, software, and platforms for digital television applications. The stock has a P/E of 11 and a PEG of 1.21.

Disclosure: Author does not own any of the above.

Comments

[Nextel Accessories]

ALVR is very interesting

[DR JOHN AINSWORTH PE]

I HAVE BEEN LONG CHKP FOR YEARS. WHILE THE STOCK ITSELF HAS AN INTERESTING HISTORY, IT HAS BEEN ONE OF MY MOST PROFITABLE POSITIONS, ALONG WITH INTC, MENTIONED IN THIS ARTICLE, BUT NOT PART OF ITS COMMENTS.

THE GREAT PROFIT FROM CHKP COMES FROM ITS ABILITY TO OFFER ABOVE AVERAGE OPTIONS PREMIUM FROM THE SELLING OF COVERED CALLS. IF ONE IS ON TOP OF HIS PORTFOLIO POSITIONS, HE CAN ACHIEVE A 14 PERCENT GAIN FROM COVERED CALL OPTIONS PREMIUM. THIS METHOD, USING THE RULE OF 72, DOUBLES HIS POSITION VALUE IN 5 YEARS. THIS HAS BEEN MY EXPERIENCE OVER THE LAST 15 YEARS.

I AM CURRENTLY LOOKING AT OTHER POTENTIAL POSITIONS IN THE ISREAL STOCK MARKET WHICH ARE LISTED IN THE U.S. MARKETS.

FINALLY, THE FACT THAT BUFFETT BOUGHT ISCAR IS IRRELIVENT TO ME. BUFFETT'S (BRK.A OR BRK.B) HAS NO INTEREST TO THIS INVERTOR. HEY DR JOHN "WHY YOU SAY?" THE ANSWER IS VERY SIMPLE.......NO OPTIONS ON BIRKIE'S STOCK.

WHEN COMPARING MY PORTFOLIO TO BRK.A OR BRK.B OVER THE LONG TERM, MY POSITIONS OVERALL, HAVE OUT PERFORMED BUFFETT'S PORTFOLIO. PORTFOLIO PERFORMANCE IS MY ONLY CONCERN FROM INVESTMENT POSITIONS.

THANK YOU!
DR JOHN AINSWORTH PE