Weekly Review
Seeking Alpha Analyst Since 2021
Israelstockinvestor is written by Lawrence Weinman(lweinmanadvisor) a registered investment advisor who divides his time between the US and Israel. He manages broadly diversified portfolios consisting of ETFs and individual stocks. He also manages portfolios consisting solely of Israeli stocks and ETFs traded on US exchanges. These portfolios are designed to be a "satellite" portfolio alongside a globally diversified portfolio of stocks and bonds. Mr. Weinman and clients may hold positions in stocks written about here. Nothing here should be treated as investment advice to buy or sell any securities
Summary
- Intel announced it is spinning off Mobileye.
- Solaredge (SEDG) will enter the S+P 500.
- Sentinelone (S) reports stong results but stock sellsoff.
- Checkpoint (CHKP) removed from Nasdaq 100 Palo Alto Networks (PANW) added.
- Fiverr (FVRR) and Wix (WIXX) continue to show weakness.
Several major developments with Israeli stocks occurred this week:
- Intel (INTC) announced is spinning off Its' Israeli mobility company Mobileye. The stock is expected to have a valuation of $50 bilion a hefty profit for Intel that bought Mobilieye four years ago for $15 billion. Intel has also acquired Israeli based Moovit which will generate additional data for self driving. Mobileye and will be integrated into Mobileye. Intel will retain a majority interest in Mobileye.
Mobileye tripled revenue since the Intel acquisition to $1 billion in 2020. Although at present Mobileye doesnt report earnings separately Intel CEO has said the unit is "very profitable. Mobileye has worked with BMW,Volvo,and General Motors and has a major supply relationship with Ford. in total threre are 30 companies using its technology and a major contract.
Well ahead of others (like Tesla) Mobileye will have robotaxis on the road in Munifch in 2022 Mobileye they will be using NIO cars through SIXT and Moovit
- Solaredge (SEDG)to enter the S+P 500 on December 20. Solaredge is one of the leaders in solar energy (see my analysis here). In the 7 years since the IPO it has grown from a vsluation of $685 million to $14.5 billion a return of 1600% It is one of the three largest market cap companies among Israeli firms.
Solaredge has a slightly negative return year to date and is below its all time high of $389 likely reflecting a reaction to SEDG's high valuation. Entry into the S+P 500 often gives a short term increase in the market as S+P 500 index funds and ETFs need to buy the stock and many active funds benchmarket agains the S+P may do the same.
Sentilone (S) In the third fiscal quarter, SentinelOne reported revenue of $56 million, up 128% from the corresponding quarter of 2020.exceeding analyst estimates of $49.58 million Revenue in the first three quarters of 2021 was $139 million, up 120% from the corresponding period of last year. Results exceeded market expectations. But the company remains unprofitable reporting a loss of ($0.15)
S was extrmely volatile around the earnings release date of December 7 earnings with extremely high volume (see below) Some cited low profit margins as well as the end of the lockup period for insiders to sell stock as weighing on its stock.
| Date | Open | High | Low | Close* | Adj Close** | Volume |
|---|---|---|---|---|---|---|
| Dec 13, 2021 | 49.50 | 50.34 | 49.19 | 49.90 | 49.90 | 1,374,992 |
| Dec 10, 2021 | 47.90 | 50.45 | 47.51 | 50.30 | 50.30 | 8,183,980 |
| Dec 09, 2021 | 46.73 | 48.88 | 46.26 | 48.11 | 48.11 | 13,924,361 |
| Dec 08, 2021 | 45.10 | 49.37 | 43.04 | 48.60 | 48.60 | 12,237,316 |
| Dec 07, 2021 | 47.43 | 52.40 | 47.38 | 51.04 | 51.04 | 7,505,040 |
S like many other small cap high growth stocks has been "repriced" in the market. S at $50.30 is still above its IPO price of $35 but well below its' high of $78.20
Checkpoint (CHKP) is being removed from the Nasdaq 100 among stocks that will be added to the index will be Israeli firm Palo Alto Networks (PANW). More on PANW in an upcoming article.
Fiver (FVRR) and Wixx (WIX) have seen their stocks continue to fall. Uncertainty as to the future of companies who had strong growth in the move to work at home as seen with Zoom (ZM)and Docusign (DOCU) hit the stock.
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Analyst's Disclosure: I/we have a beneficial long position in the shares of SEDG, S either through stock ownership, options, or other derivatives.
Lawrence Weinman is a registered investment advisor (US) he and clients may hold positions in the stocks mentioned. Nothing herein is to be considered a reccomendation to buy or sell any security.
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