Wednesday, May 7, 2014

I-Pray for Samach until Tav ploos Bio Techs

In this final installment of my research notes, you may laugh or you may cry. I really don’t care as long as you invest. I have a retirement to save for.

ס

סנו. Sano is one of Israel’s premier manufacturers of household necessities that are a source of constant annoyance for you every day. Like the plastic sandwich bags. How do they get them so thin? I don’t know, but as my Friend has astutely observed, this is clearly irrefutable evidence that Israelis are experts in plastics.

ספאנטק. Spuntech is a “leader in hydroentangled fabrics.” Want to know more? I know you do. Here is what it says on their website about how their products are used in the medical field: “Spuntech offers low grammage fabrics to replace the traditional gauze-woven materials, thus taking advantage of the superior absorbency capabilities of the hydroentangled, low-lint spunlace.”

פ

פולירם. This company manufactures “thermoplastic compounds.” Maybe that’s how they get it so thin.

פוקס. Fox is a clothing retailer with really colorful stores, and everyone in my family (except for me) has one of their fleeces. They have also expanded into some other brands, including Laline, which apparently appeals to the ladies although my wife has never heard of it. Think of them like the Gap, just that the clothing is more likely to fall apart in the washing machine.

פרשקובסקי. This small residential builder made the I-PRAY index because I asked friends of ours who bought a house from them, and they told me that they “do not hate their builder.” Wow.

ק

קסטרו. This retailer sells very hip clothes that I would never wear, but many other people apparently do.

ר

רמי לוי. Rami Levi is a hot-shot supermarket chain. The key features of their business model is to not have enough customer parking and to have mozzarella as the only cheese that they will grate for you. Contrary to what you may think, they do not do this because they hate customers. Actually, it is part of a complex strategy to cut costs. It must be working because my family keeps going back every week even though we can never find any place to park. Also, it is awesome how they entered the cell-network business which is no place for a supermarket, and I’m holding out hope that they will one day open a bank which would make equally little sense. I want to be a shareholder when that happens, even if it means that I have to grate my own parmesan.

ש

שיכון ובינוי. Shichun U’binui is a mammoth developer. I don’t think they are a PFIC because most of their revenue comes from commercial construction projects (domestic and abroad) rather than real estate investments.

שנפ. Shnapp is a small company with an electrifying marketing presence. Just visit their website and you will get excited about stuff. They manufacture batteries and things related to electricity. I don’t know what kind of growth to expect, but I enjoy being a shareholder because every time I drive by one of their signs at a garage, I roll down my window and thank everyone there for buying my batteries.

The Bio Techs

Rounding out the I-PRAY index are these three Bio Tech companies: אבוגן, מזור טכנולוגיות and קמהדע. These companies are either saving the world or stealing your money. It’s hard to say exactly which way it will go.

Will You I-PRAY Too?

That is all I have to say for now about I-PRAY. Now, it’s your turn. Post your comments or send in your feedback. We’re already open for nominations for I-PRAY II.

18 comments:

  1. In the biotech area, I always wonder about Teva. What do you think about Teva?

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    1. I considered Teva for the index, but they look too expensive to me. They are trading at 34x trailing price-to-earnings, which means that there is a bet of significantly increased revenue in the year ahead. That may happen, but they are priced at about 11x projected earnings, which doesn't leave a lot of room for error. They are also carrying a lot of debt (11 billion) which is less than appealing. What do you think?

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  2. Good point, I did not realize their P/E was that "ra" (bad). Thanks for correcting me,

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    1. Not "bad" or "good" just more like a "growth" stock or more like a "value" stock.

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    2. growth and value stocks are completely different! I am not sure I am following...

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    3. I just meant that numbers for a company are not so much "good" or "bad" as they represent a different type of valuation, I think that Teva is currently valuated as if its a growth stock.

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    4. Are you saying Teva is like Amazon when it has a bloated P/E? It is a growth stock when it has that high of a price earnings ratio?

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  3. Any comment yet on the conflict in the Ukraine?

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  4. Any Russian stocks you would recommend then?

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    1. Only if you are going to sell them short!

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    2. In general, I think your stocks should be diversified globally. Other than the U.S. market (which is the mega-financial market in the world) and Israel (which is where I live), I don't go out of my way to overweight my allocation to any particular market.

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    3. Are you saying you support the invasion of the Ukraine by Russia?

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  5. I don't think Jpost will let you take that point of view.

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  6. I pray that we don't encourage supporting the Soviet Union to form again. They were not kind to the Jewish people.

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  7. I don't think the Russian stocks are a good example of diversification. http://www.padisetty.com/2014/01/sivas-portfolio-and-his-style-of.html

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    1. You can add them to part of your "international stock" allocation.

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  8. http://blogs.fas.org/security/2014/05/preventing-ukraine-spiraling-control/

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