Venture capital overview

After TAMID hosted venture capitalist Rick Zitelman who spoke extensively about his fund’s investment in an Israeli incubator called TrendLines, it is interesting to have a look at the VC landscape of Israel. Check out this JPost article: http://www.jpost.com/servlet/Satellite?cid=1256799088429&pagename=JPost%2FJPArticle%2FShowFull

Deutsche Bank raises ICL target to NIS 42

Deutsche Bank this week raised its 12-month price target for Israel Chemicals (TASE: ICL)  and repeated a Buy rating for the fertilizer and potash provider’s stock.

The company, which is controlled by Sami Ofer and Idan Ofer via The Israel Corporation (TASE: ILD), received a 12-month price target of NIS 42, which is 23% above its Wednesday starting share price on the Tel Aviv Stock Exchange.

The bank wrote that ICL stock had been underperforming its sector and could boast the dubious distinction of being the cheapest share in the sphere of fertilizers, other than one other lagger, Agrium.

“It trades at a 29% discount to peers and a 40% discount to PotashCorp,” Deutsche Bank wrote, referring to the Potash Corporation of Saskatchewan.

The analysts say they expect the valuation gap between ICL and similar companies to close quickly as all companies in the potash space experience the same demand and pricing trends.

“We rate the stock a Buy since we expect fertilizer price rises to lead to high EBITDA growth in the next two years,” Deutsche Bank wrote.

Clalit deficit rose sixfold in 2008, partly thanks to salary increases

One week after government hospitals admitted to gargantuan operating deficits for 2008, the Clalit health maintenance organization reported a sharp increase in its deficit as well

Clalit ran a huge deficit last year, nearly six times higher than its deficit in 2007, which was NIS 74 million.

The deficit can be attributed in part to pay raises, including the higher salaries for doctors brokered as part of the retroactive arbitration agreement in 2008.

About Clalit: It has since developed into the major health organization in Israel, and one of the most progressive public health associations in the world.

Outgoing Israel Corp CEO getting NIS 4 million bonus

Yossi Rosen is leaving the CEO’s seat at The Israel Corporation (TASE: ILD)  a rich man. He is succeeded by Nir Gilad, formerly accountant-general at the treasury, who’s starting with the potential to grow nicely rich through stock options.

Rosen received an NIS 4 million bonus plus NIS 3.2 million consisting of six months’ pay, redemption of unutilized vacation time, and severance compensation.

His wage cost in 2006 came to NIS 7.7 million.

Note: It is always important to know who are leaders are in important Israeli companies

The Two-Shekel Coin

Meet the two-shekel coin, coming soon. Today the first, small, shipment of the coin arrived at the Bank of Israel for technical inspections.

The Bank of Israel also provides the coin for inspection companies that operate vending machines.

The coin will be minted to the general public in the last quarter of 2007.

Before deciding to mint the new coin, the Bank of Israel conducted surveys among the public and sectors that commonly use cash, such as taxi companies and banks. It found widespread support for the two-shekel coin.

Next time you guys go to Israel, look out for the NEW two-shekel coin!

Israel’s “Kindle”

Pelephone, in collaboration with Steimatzky book store, are set to launch Israel’s version of the “Kindle”: http://www.haaretz.com/hasen/spages/1124201.html

Africa Israel bondholder reps can’t even agree with themselves

African Israel bondholders met in Tel Aviv to try and reach an agreement on a proposal to present to Africa Israel regarding repayment of debt. Lev Leviev, who controls interest in Africa Israel, will have to put up a lot more of his own money if he’s to remain in controL. Africa Israel has already stated that it won’t pay the NIS 550 million

Background: What is Africa Israel?

Africa Israel is focused on developing core activities in the fields of real estate, construction & infrastructure, energy and related industries. It is headquartered in Israel, under the leadership of its chairman and controlling shareholder Mr. Lev Leviev,AFIGROUP comprises 13 companies traded publicly on the Tel Aviv Stock Exchange (TASE) and other global stock markets.

Israeli selected as 2009 Nobel Prize Laureate in Chemistry

Though its not especially business related, it is worth mentioning that Professor Ada Yonath of the Weizman Institute of Science in Israel, has been awarded the 2009 Nobel Prize in Chemistry along with two of her American counterparts. The award comes in recognition of Professor Yonath’s work with ribosomes, the foundations for protein generation, which will hopefully contribute to progress in the development of antibiotics.

Israeli innovation never ceases to amaze us here at TAMID, and is a core impetus for our work– to show that Israel is an innovation hub for finding creative solutions to the world’s most challenging problems.

For the official announcement: http://www.samaylive.com/news/2009s-nobel-prize-in-chemistry-venkatraman-ramakrishnan-thomas-a-steitz-ada-e-yonath-are-winners/660748.html

Israeli Businesswoman Ofra Strauss

Strauss, Chairwoman of the Strauss-Elite Group, was mentioned in the Financial times as one of the world’s top 50 businesswomen.

“By the time Ofra took over, in 1996, the company was Israel’s second biggest food and beverage group, thanks in part to the purchase of Elite, a coffee and chocolate giant. Looking to strengthen further the group’s portfolio, Strauss has acquired several brands and expanded abroad, while managing to integrate Elite. Sales in 2008 topped NIS6.2bn (£1bn). And its product lines are expanding, with moves into packaged salads and salty snacks.”

http://www.ft.com/cms/s/2/bcfcdb2c-a716-11de-bd14-00144feabdc0.html

economy overview for august

check it out for the month of august: http://www.haaretz.com/hasen/spages/1116369.html