Friday, July 29, 2011

Bethel Finances: Shekel down against dollar despite US debt woes

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The shekel is weakening against the dollar, but strengthening against the euro in inter-bank trading today, continuing yesterday's trends. The shekel-dollar exchange rate rose 0.89% to NIS 3.43/$, and the shekel-euro exchange rate fell 0.35% to NIS 4.897/€.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.40/$, up 0.06% on the day before, and set the shekel-euro representative exchange rate at NIS 4.915/€, down 0.13%.

In international markets, the dollar is trading at $1.435/€ against the euro and at ¥77.8/$ against the Japanese yen. The euro continues to weaken on worries that Greece's debt problems are liable to spread to other countries in the eurozone. However, the dollar is also suffering from the deadlock in negotiations between Republicans and Democrats to raise the US debt ceiling ahead of the August 2 deadline.

Bethel Finances: Parents launch protests over child-raising costs

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A new group of protesters is emerging to join the tent protesters and others - parents protesting against the high cost of parenting. Israelis spend thousands of shekels a month on daycare, diapers, infant formula and foods, strollers and other equipment.

Education is not free; school fees cost thousands of shekels and schoolbooks cost hundreds, and since school and daycare end early, afternoon activities cost a fortune.

The Consuming Mothers Cry Facebook page quickly reached 5,300 friends.

"Globes": Will the parents protesters join hands with the tent protesters?

Consuming Mothers Cry organizer Liat Vardi-Bar: "On one hand, the government promotes fertility, but no one gives a thought to the financial cost of being a parent. The price we pay has no comparison anywhere in the world."

The parents' demands include free education from the age of 3 months, price controls on basic goods, such as diapers and infant formula, expanded maternity leave, stop paying for strollers on buses, recognition of daycare and infant products for tax purposes, and equal pay and equal opportunities for working mothers.

Bethel Finances: Steinitz unafraid of Eini's backing for protests

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"All in all, there has been cooperation between the government and the Histadrut. The package deal two years ago greatly helped the economic recovery," said Minister of Finance Yuval Steinitz in response to yesterday's announcement by Histadrut chairman Ofer Eini that the Histadrut (General Federation of Labor in Israel) will support the tent protesters and gave Prime Minister Benjamin Netanyahu a deadline to open talks on the high cost of living.

Asked by “IDF Radio" (Galei Zahal) if Eini is the address for talks, Steinitz said, "Until now, the dialogue between Netanyahu and Eini has helped."

Asked about Eini's ultimatum, Steinitz replied, "As far as I'm concerned, I'll talk with Eini."

Steinitz added that Eini cannot topple the government. "I haven’t read this morning's papers, but I doubt that there's a reality or intention of toppling the government. I think that this government has done much in the socioeconomic field, and successfully. It halted the economic crisis that greatly affected the US and Europe, and greatly helped the elderly and working mothers. This government will undertake many more reforms. Economic growth interests the whole public, because without growth, the unemployment rate would be 15%."

"Galei Zahal": Other countries don’t have Israel's cost of living.

Steinitz: "We must fight and there are ways of doing so. The main way is to prevent over-concentration and to increase competition. Just as I took the Sheshinski committee and succeeded in passing legislation that will benefit the Israeli people by hundreds of billions of shekels, I will fight on this field too. Just yesterday, the minister of industry and I decided to open the dairy market to imports and to lower the target price of milk."

Steinitz denied that this was spin, saying, "I think that you've got a nerve, because you're ignoring the facts. By the end of 2011, there will be a change in home prices, and I'm not the only one saying so; so does the Bank of Israel and other experts."

The price of products at supermarkets will fall by just ten agorot, and the country is fuming over this.

"You're wrong, and I don’t know where you got that calculation. The price will fall by much more. We launched a process yesterday, and the results will be gradual and ongoing. Within a few years, we'll see price for dairy products fall by tens of percent."

Bethel Finances: Police remove protesters from stock exchange

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Police this morning removed National Left activists from the Tel Aviv Stock Exchange (TASE) building at 54 Ahad Ha'am Street in Tel Aviv. The activists blocked the entrance to the building, and were removed without resistance by the police within an hour.

The activists were protesting the concentration of power in the economy and the latest debt settlements proposed by tycoons.

Students at Beit Berl College in Kfar Saba blocked the car of Ministry of Finance director general Haim Shani, who was there for a meeting. Last night, students set up a tent protest at the campus.

Last week, National Left activists seized a building at the corner of Dizengoff Street and Frishman Street in Tel Aviv to protest high home prices.

Bethel Finances: Aman Group buys IT services consulting co Xagram

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IT services company Aman Group has acquired IT services consulting firm Xagram Technologies Ltd. for NIS 700,000.

Xagram, founded in 2005, has dozens of employees. CEO Dr. Marc Abergel will keep continue to manage the company's business at Aman.

Aman Group CEO Ben Pasternak said that the merger would benefit both companies.

Bethel Finances: Farmers furious over dairy import decision

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Israel's dairymen and dairy industry in general are furious at Prime Minister Benjamin Netanyahu for adopting the Kedmi committee recommendations to allow expanded cheese and powdered milk imports and to cut the price of raw milk sent to dairies by NIS 0.06 per liter . The Israeli Cattle Breeders Association met today to discuss protest actions.

Dairymen are calling Netanyahu's decision cruel and idiotic, and said that it will destroy dairy farming in Israel. "We have no doubt that dairy farmers in Europe and tycoons in Israel are proud of the prime minister, because his decision will enrich them," said one dairy leader.

Knesset farmers lobby chairman MK Shai Hermesh (Kadima) slammed Netanyahu, saying that his decision was "a cheap attempt to placate the tent protesters by slaughtering cows - something that will cost us dearly. The prime minister, as is his wont, beats the poor instead of hitting the supermarket chains that are profiteering across a full range of food products. He chose to attack the weakest link - the dairy farmers. This is a ringing slap in the face to the periphery, the confrontation lines, and working people. This is a populist decision that fruits of shame will be eaten by the Israeli consumer, which will soon face shortages of Israeli produce and will become dependent of food imports."

The Israel Dairy Board says that the government's actions are based on fundamentally wrong assumptions. Exposing the Israeli dairy market to imports will not lower prices. Instead, this decision, combined with the reduction in the target price of milk, will force hundreds of dairy farms to close down across the country.

"The over-concentration of dairy production will only increase," states the Dairy Board. "The entire data gathering process that preceded the decision was hasty, rushed, and did not rely on checked financial figures. This action has lowered the axe on Israel's dairy farms."

Israel Farmers Federation chairman Avshalom Vilan slammed Netanyahu's decision, saying that he was liquidating Israel's dairy industry. "The government is a false hero, attacking the weakest link in the chain. Importing yellow cheese will result in the slaughter of 30% of Israel's dairy herds. Small dairymen will pay the full price, and it is doubtful whether consumer prices will fall, because the dairies and especially the big supermarket chains will continue to rake it in at the consumers' expense."

Last week, the Israel Cattle Breeders Association petitioned the High Court of Justice for an injunction banning the government from moving forward on measures that will harm the dairy industry. The association claims that some of the Kedmi committee recommendations violate the Dairy Economy Planning Law. The Israel Dairy Board also petitioned for an injunction.

The High Court of Justice will hear the petitions in mid-August, by which time the government will have to submit its response.

Bethel Finances: Broker solutions co Leverate raises $12.5m from Denmark's Saxo Bank

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Denmark's Saxo Bank has acquired 25% of broker solutions company Leverate Ltd. The parties did not disclose the size of the deal, but blog Forexmagnates says that the investment totaled $12.5 million at a company value of $50 million for Leverate, which currently has a few million dollars in sales.

Saxo Bank, an online trading and investment specialist, bought shares in Leverate from its five founders, including co-CEOs Ran Strauss and Doron Cohen. Part of the investment will go directly to Leverate to finance rapid growth. One name stands out among Leverate's outside investors: Tempo Beer Industries (TASE: TMPO) controlling shareholder Jack Beer.

According to IVC, Leverate raised $100,000 when it was founded in 2008. Since it was profitable from the outsiet, and never received substantial outside investment, Jack Beer can presumably sell his stake at a handsome profit of several million dollars.

Leverate has 50 employees and wants to hire 20 more, mostly software engineers. Leverate provides software as a service (SaaS) solutions for online trading.

In a joint statement, Strauss and Cohen said, "Leverate will continue to provide innovative and comprehensive proprietary solutions for the FX market, and we are proud to be working together with Saxo Bank. Time and time again, Saxo Bank has been recognized as a leading force in the forex industry, and together we plan to continue Leverate's R&D efforts in the area of technology solutions and related services for brokers and financial institutions."

Bethel Finances:Israel gas sales boost Noble Energy results

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Noble Energy Inc. (NYSE: NBL) sold 174 million cubic feet per day of natural gas in Israel in the second quarter of 2011, 44% more than in the corresponding quarter of 2010. The company attributed the increase to strong power generation demand and lower competing imports.

Consequently, Noble Energy raised its full-year sales volume guidance to 215-218 million barrels of oil equivalent per day "with the primary driver being higher natural gas volumes in Israel."

Noble Energy's revenue rose to $954 million for the second quarter from $751 million revenue for the corresponding quarter. GAAP-based net profit rose to $294 million ($1.61 per share) for the second quarter from $204 million for the corresponding quarter, and non-GAAP net profit rose to 263 million ($1.44 per share) from $198 million.

The company's liquid assets increased to $3.6 billion at the end of June, including $1.5 billion in cash.

Noble Energy increased its 2011 total capital program by $300 million to $3 billion. Over a third of the increase is for new high-impact international exploration opportunities, with the remainder supporting the expansion of the Wattenberg horizontal Niobrara program in Colorado, the acceleration of major projects in Equatorial Guinea, and the addition of a new near-term gas development project in Israel.

The company added that it was proceeding with development of the Noa offshore field in the third quarter of 2011, and that it expects production to begin in the second half of 2012. Noble Energy jointly owns the field with Delek Group Ltd. (TASE: DLEKG).

Noble Energy and Delek are also partners in Yam Tethys, and in the Tamar, Dalit, and Leviathan fields.

Noble Energy chairman and CEO Charles Davidson said, "The second quarter was another strong quarter for Noble Energy. In addition, we anticipate testing multiple exploration opportunities in West Africa, the Eastern Mediterranean, and the deepwater Gulf of Mexico before the end of the year."

Noble Energy's share price closed at $95.33 yesterday, giving a market cap of $16.8 billion.

Bethel Finances: Leumi breaks off talks to buy Tnuva stake

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Bank Leumi (TASE: LUMI) today notified the TASE that, despite repeated attempts, it had not reached an agreement to extend the deadline for completion of the Tnuva Food Industries Ltd. deal, and there is no contact between the parties on this matter. The bank's statement effectively cancels the acquisition of Mivtach Shamir Holdings Ltd's (TASE:MISH) stake in Tnuva. Bank Leumi first announced the cancellation of the deal in June.

In a statement, Bank Leumi said, "Even though there are no talks on a deal, Leumi believes that this is a good company to invest in by the banks, and if and when the circumstances are suitable, the bank is prepared to reconsider investing in the company at suitable terms."

Earlier this month, "Globes" reported that, due to the cottage cheese crisis and concerns about tighter regulations to lower prices for dairy products, which could erode Tnuva's profits, Bank Leumi asked Tnuva controlling shareholder Apax Partners for data to reassess the company's value.

A source close to Bank Leumi said, "Something happened in the past couple of weeks. It's impossible to ignore what happened. Tnuva is no longer the same company, and the price will have to change, and the direction can only be down."

Tnuva's value, including debt, for the Bank Leumi-Mivtach Shamir deal was NIS 6 billion. Mivtach Shamir was due to sell its indirect 20.7% stake in Tnuva to Bank Leumi's investment arm Leumi Partners Ltd. for NIS 775 million. The bank would pay NIS 387.5 million for half of Mivtach Shamir's stake in the special purpose vehicle (13.5%) through which it and Apax own Tnuva, which would give the bank a 10.35% holding in the company. Private investors were to buy the other half of of Mivtach Shamir's stake in the special purpose vehicle.

Bethel Finances: Price protests erode Netanyahu's popularity

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The popularity of Prime Minister Benjamin Netanyahu fell sharply in the July poll by the Smith Institute for "Globes". Netanyahu's bounce from the Obama effect earlier this year, following his speech to the US Congress, has dissipated and has been replaced with the tent protest effect.

Since the domestic battle began with the cottage cheese protest and now with the tent protest and others, the Likud has lost three Knesset seats to 26 seats, were elections to be held now.

The Smith Institute also asked respondents to rank Likud ministers on a scale of 1 to 10, and compared the results with the previous scores in December 2010. Only one minister - Minister of Communications Moshe Kahlon - saw an improvement in his score, from 6.97 to 7.21, putting him far ahead of all of his colleagues. The second most popular Likud politician is Minister of Environmental Protection Gilad Erdan, with a score of 6.33 points. Netanyahu's score fell to 5.27 points from 5.9, and Minister of Finance Yuval Steinitz's score fell to 4.66 points from 5.98 points.

Bethel Finances: Walk restoration device co Argo Medical raises $7m

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Argo Medical Technologies Ltd. has raised $7 million. The company develops walk restoration devices.

All of Argo's shareholders participated in the round, alongside new ones, according to ProSeed Venture Capital Fund (TASE:PRSD), which owns 6% of the company. Argo lists ProSeed, Vitalife Life Sciences Venture, Technion R&D Foundation, and US fund SCP Vitalife as its investors.

Argo's ReWalk device is a powered exoskeleton frame comprising a light brace support suit with an array of motion sensors, a computer system based on control and safety algorithms, and tailored rechargeable batteries. The device enables people with lower limb disabilities to stand, walk, ascend, and descend stairs.

The ReWalk has won extensive media coverage in the US and made an appearance on the popular TV show "Glee".

Bethel Finances: Mobile application cos Vringo and Zlango merge

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Mobile social and video applications developer Vringo Inc. (AMEX: VRNG ) has signed a letter of intent to acquire mobile messaging company Zlango Ltd. for $5 million in shares, and also announced a $2.5 million investment by Benchmark Capital and DAG Ventures.

Vringo and Zlango will combine Zlango’s media messaging services Vringo’s mobile social and video applications to create a new leader in the mobile social arena.

Vringo will issue 3 million shares to Zlango and issue 250,000 options for 250,000 shares to Zlango's executives. Vringo closed at $1.53 on the American Stock Exchange yesterday, giving a market cap of $8.7 million. Vringo's share price has fallen two-thirds since its IPO a year ago.

Vringo posted a net loss of $1.1 million on $147,000 revenue in the first quarter of 2011, after losing $9.9 million on $211,000 revenue in 2010.

Zlango has raised $22 million to date from Benchmark, DAG Ventures, Accel Partners, and other investors. It raised $6 million in its latest financing round three weeks ago. The company's turnover is a few million dollars a year.

Vringo CEO Jon Medved said, "This is a great opportunity for us, because Zlango operates in a larger market than we do - a market with a turnover of billions of dollars a year."

Zlango CEO Ronny Haim said, "Both companies distribute applications platforms and can immediately sell the other company's product to deepen market penetration."

Bethel Finances: Treasury tells Tshuva: Cut gas prices or face price controls

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"The more that gas suppliers set reasonable prices, the chance that Ministry of Finance will control them is reduced," a Ministry of Finance official said in response to a request by the public prices committee for bids for a price control mechanism on natural gas. The ministry's threat to impose price controls is part of its effort to support Israel Electric Corporation (IEC) (TASE: ELEC.B22) in its negotiations with Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) and its partners in the Tamar gas license.

In these talks, Delek and Noble Energy Inc. (NYSE: NBL) agreed to cut the price of gas to below $6 per million British Thermal Units (BTU), but the Ministry of Finance's budget department wants the price cut further, to the level IEC agreed on with the Tamar partners in January 2010, before the Sheshinski committee and before the disruption in gas deliveries from Egypt.

The Ministry of Finance and Ministry of National Infrastructures' joint prices committee has asked for responses from consumer advocates, private power producers, natural gas customers, and the gas companies by August 7.

A Ministry of Finance source told "Globes", "This is a complicated professional procedure that requires us to deal with questions such as whether price controls will be imposed on types of transactions, or only on large, long-term contracts." The ministry believes that the prices committee will reach a decision a month after the hearing, by mid-September.

Experts, including Natural Gas Authority director Shuki Stern, a member of the prices committee, have said that they strongly disagree with any price controls, but that they would impose them if there was no choice.

The letter of intent signed in January 2010 between IEC and the Tamar partners mentions the purchase of 2.8 billion cubic meters of gas over 15 years at $4.50 per million BTU, a price that the Ministry of Finance says is equivalent to $5.14 today. IEC has since decided to increase its gas purchases from Tamar.

Bethel Finances: Interior minister freezes municipal tax hike

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While the plans for solving the housing crisis that Prime Minister Benjamin Netanyahu presented last night will only have an effect in the long-term, sources inform ''Globes'' that Minister of Interior Eli Yishai has used his authority to freeze arnona (local property tax) in an effort to assist the public in the short-term.

Yishai and Ministry of Interior director general Amram Kalaji agreed that the ministry will deny requests from municipalities to raise arnona over the next months. They will then review the issue on the basis of economic developments.

Yishai will ask the Ministry of Finance to fund the measure, instead of local authorities. Yishai will exempt from the arnona freeze municipalities undergoing recovery, and will coordinate arnona rates with them. The Ministry of Interior will also consider differential arnona hikes for different neighborhoods, based on their socioeconomic standing.

Yishai will meet Netanyahu, Minister of Finance Yuval Steinitz and Union of Local Authorities chairman Shlomo Bohbot in a few days to find additional sources of financing to support municipalities, such as raising arnona for commercial and industrial businesses.

"I won't approve requests to raise arnona for residences. The public's cry of pain is real and immediate remedies are needed," Yishai told "Globes". "The public is collapsing under the economic war of attrition and the government should lead the defensive battle. This war is on all fronts, food and consumer prices, real estate, and healthcare services."

Bethel Finances: Zoran's Q2 loss widens

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Zoran Corp. (Nasdaq: ZRAN) did better than expected in the second quarter of 2011 - although the company's net loss widened, it was in the analysts' consensus of $0.43 per share. The company also predicts a lower net loss on higher revenue for the third quarter.

Zoran's revenue fell to $82.9 million for the second quarter from $93.4 million for the corresponding quarter of 2010. The company edged the analysts' revenue consensus of $82.6 million.

GAAP-based net loss more than quadrupled to $25.5 million ($0.51 per share) for the second quarter from $6.7 million for the corresponding quarter. Non-GAAP net loss quintupled to $21.3 million ($0.43 per share) from $4 million for the corresponding quarter.

In its guidance, Zoran expects non-GAAP loss per share of $0.07-0.12 on $100-105 million for the third quarter. The guidance is less than the analysts' consensus of a loss per share of $0.13, and in line with the revenue consensus of $102 million.

Zoran president and CEO Dr. Levy Gerzberg is confident that the company's pending merger with CSR plc (LSE: CSR) is on track. He said, "We are pleased with the improving performance we are seeing in our core markets and remain confident that the pending combination with CSR will enhance and accelerate design-win activity of our proprietary technologies and market leading products."

Zoran's share price fell 0.3% yesterday to $8.44, giving a market cap of $422 million.

Bethel Finances: Doctors march on Jerusalem

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Israel Medical Association leaders are continuing their protest march to Jerusalem today, after yesterday's negotiations ended without results, “IDF Radio" (Galei Zahal) reported. The senior doctors began the day's march at Nesharim interchange led by Medical Association chairman Dr. Leonid Eidelman, who is walking in the heat even though he has been on a hunger strike for two days and is only drinking water.

This morning 150 specialists and interns left Sheba Medical Center Tel Hashomer near Tel Aviv and marched towards Bar Ilan interchange carrying stretchers and calling on Prime Minister Benjamin Netanyahu to intervene in the crisis. Last night an intern collapsed at Assaf Harofeh Hospital in Tsrifin near Rishon LeZion after working 20 straight hours. She received an infusion and returned to work.

In the afternoon, doctors plan to march along Road 44 from Ramle towards Jerusalem. Dr. Eidelman will meet with Ministry of Finance officials this afternoon, after which he will return to the march. Dr. Eidelman spent the night at Kibbutz Nachshon in the tent that he sets up each night.

In the meantime, outpatient clinics, institutes, and day wards in all hospitals throughout the country will be closed today. Tomorrow only urgent surgical procedures will be performed and the Medical Association leaders' march will reach Jerusalem, where a protest tent will be set up in front of the Prime Minister's residence.

Bethel Finances: NICE ups guidance on strong Q2 results

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NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) today raised its full-year revenue and profit guidance after reporting record revenue for the second quarter of 2011. The company met the analysts' earnings per share consensus and beat their revenue consensus of $194.3 million.

NICE's revenue rose 16% to $196.7 million for the second quarter from $169.5 million for the corresponding quarter of 2010.

GAAP-based net profit rose 8% to $15.5 million ($0.24 per share) for the second quarter from $12.7 million for the corresponding quarter. Non-GAAP net profit rose 16.4% to $32.3 million ($0.50 per share) for the second quarter from $26.5 million for the corresponding quarter.

NICE raised its full-year revenue guidance to $785-805 million and its earnings-per share guidance to $2.00-2.08. It expects $0.50-0.54 earnings per share on $197-203 million revenue for the third quarter.

Cash flow from operations was $27.7 million, bringing NICE's total cash and equivalents to $658.5 million at the end of June, after buying back $28.8 million worth of shares during the second quarter. The company has no debt.

NICE president and CEO Zeevi Bregman said, "We continue to benefit from the trends that fuel NICE's growth, including: the increased number of interactions between organizations and their customers through various communication channels, persistent security threats to people and assets, continuous financial crime attempts, as well as a growing focus on compliance with regulations. We believe that NICE is at the pole position to take advantage of these trends.

NICE's share price fell 0.5% on Nasdaq yesterday to $37.07, giving a market cap of $2.36 billion, but rose 0.2% on the TASE today before trading was suspended ahead of the announcement to NIS 127.50.

Bethel Finances: Electricity Authority delays large PV facilities

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The Public Utilities Authority (Electricity), with the support of the Ministry of National Infrastructures representative Doron Aharon, yesterday delayed approval of regulations for large photovoltaic (PV) facilities, against the position of Minister of National Infrastructures Uzi Landau. However, the Public Utilities Authority approved regulations for electricity production by biogas.

It is extraordinary for the Ministry of National Infrastructures representative on the Public Utilities Authority's board to vote against the position of the minister. Such a vote is legitimate, however, because the representative's primary duty is to the Public Utilities Authority.

Aharon is a radical on the Public Utilities Authority plenum on the matter of large PV facilities, belying Landau's position. Aharon supports slashing the electricity rates paid to PV facilities, despite the quotas approved in January, and which were subsequently frozen by the Ministry of Finance. The current rate is NIS 0.98 per kilowatt/hour for PV facilities smaller than 60 megawatts, and NIS 1.07 per kilowatt/hour for PV facilities larger than 60 megawatts.

Sources believe that the Public Utilities Authority will approve the regulations by the end of August. The plenum will apparently adopt a proposal to approve the proposed rates, but will set up a mechanism to gradually lower them over several years.

Large PV facility developers say the regulator's constantly changing position is severely damaging the industry.

Bethel Finances: Shekel stable despite US debt ceiling uncertainty

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The shekel was flat against the dollar and the euro in inter-bank trading today despite the uncertainty surrounding the US debt ceiling. The shekel-dollar exchange rate fell 0.05% to NIS 3.396/$ and the shekel-euro exchange rate rose 0.04% to NIS 4.923/€.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.398/$, down 0.29% on the day before, but set the shekel-euro representative exchange rate at NIS 4.921/€, up 0.51%.

In international markets, the dollar is trading at $1.45/€ against the euro and at ¥77.76 against the Japanese yen.

The deadlocked talks on raising the US debt ceiling is unnerving markets and could prompt investors to flee the dollar, weakening against other currencies. In commodities markets, gold has risen to a record $1,622 an ounce.

Bethel Finances: Teva boosted by 82% rise in European revenue

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Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) today reported revenue of $4.2 billion in the second quarter of 2011, 11% up from the $3.8 billion in the corresponding quarter of 2010.

Sales in North America continued to fall. Teva's revenue in North America in the second quarter of 2011 was $2.1 billion, down 15% on the corresponding quarter of 2010. But overall revenue was boosted by an 82% rise in Europe to $1.48 billion, and a 22% rise in Latin America and Asia to $635 million.

Teva reported non-GAAP net profit of $984 million in the second quarter ($1.10 per share) up from $981 million ($1.08 per share) in the corresponding quarter.

The analysts' consensus for the second quarter was revenue of $4.23 billion and non-GAAP profit of $980 million ($1.09 per share).

Cash flow from operations rose to $1.32 billion for the second quarter from $954 million for the corresponding quarter.

Despite competition from Novartis's new oral multiple sclerosis treatment, global sales of Copaxone reached a new quarterly record of $957 million, up from $907 million in the first quarter of 2011, and up 24% on the corresponding quarter.

Global sales of Parkinson's treatment Azilect reached a record $97 million in the second quarter, up 38% from the corresponding quarter.

Teva also reported that global respiratory product revenue reached $240 million in the quarter, up 9% from the corresponding quarter, global women's health product revenue was $119 million up 45% from the corresponding quarter, and API sales to third parties totaled $183 million in the second quarter, up 12% from the corresponding quarter.

Cash flow from operations during the second quarter of 2011 was $1,324 million, compared to $954 million. Free cash flow excluding net capital expenditures (of $224 million) and dividends (of $203 million) reached $897 million. Cash and marketable securities on June 30, 2011 amounted to $1.4 billion.

Teva CEO and president Shlomo Yanai said, "Teva’s results during the second quarter reflect the positive impact of our strategic initiatives to further diversify our business and develop new growth drivers. Contributions from across our company enabled us to offset the challenges we faced in our US generics business. We anticipate increased growth in US generics, as well as continued growth across all our geographies and businesses, in the second half of the year.”

Teva's share price closed on Nasdaq yesterday at $46.79, giving a market cap of $41.78 billion, and rose 0.9% in after-hours trading to $47.22. The share price fell 0.56% on the TASE this morning to NIS 158.90.

Bethel Finances: Direct Insurance sells 20% of IDI for NIS 160m

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Direct Insurance - Financial Investments Ltd. (TASE: DIFI) has signed a letter of intent to sell 20% of wholly-owned subsidiary IDI Israel Direct Insurance Ltd. to Battery Ventures for NIS 160 million, reflecting a company value of NIS 800 million.

Direct Insurance CEO Doron Schneidman said, "The value for the investment in IDI reflects the company's achievements, technological leadership, and growth potential of Direct Insurance in general and IDI in particular. We believe that our experience accumulated over the years will help IDI consolidate its position as a leader in its field in Israel."

Direct Insurance's share price rose 4.6% by early afternoon to NIS 8.63, giving a market cap NIS 820 million.

Bethel Finances:Shekel strengthens after interest rate decision

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The shekel strengthened against the dollar, but weakened against the euro, in morning inter-bank trading the day after the Bank of Israel keep the interest rate for August unchanged at 3.25%. The shekel-dollar exchange rate fell 0.59% to NIS 3.389/$, but the shekel-euro exchange rate rose 0.32% to NIS 4.912/€.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.408/$ up 0.50% on the day before, and set the shekel-euro representative exchange rate at NIS 4.896/€, up 0.16%.

In international markets, the dollar is strengthening against the euro to $1.44/€. The dollar is trading at ¥78/$ against the Japanese yen. The debt crisis in Europe continues to burden the euro, as Moody's cut Greece's debt rating by three levels to Caa1, one level above insolvency. Meanwhile, the deadlock talks to raise the US debt ceiling continues to affect the dollar.

Bethel Finances: Retail software co Retalix buys MTXEPS for $19m

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Retail software solutions developer Retalix Ltd. (Nasdaq: RTLX; TASE: RTLX) MTXEPS LLC of the US for $18.95 million in cash, and will pay up to $6 million in milestone payments over the next two years.

MTXEPS provides secure, end-to-end electronic payment software solutions for retailers, delivered via SaaS and in-store models. The company has deployed its solutions directly or via partners, including Retalix, to over 20,000 stores in North America.

Retalix CEO Shuky Sheffer said, "With MTXEPS's premier electronic payment software solutions and large satisfied customer base, we enhance our market leadership in offering retailers comprehensive, advanced solutions across all customer touch points and sales channels. SaaS is one of our growth engines, and MTXEPS's SaaS platform and offerings enhance our position in this rapidly evolving space."

MTXEPS president Jon Elwood added, "We've had a very successful partnership with Retalix in the US since 2004, and this acquisition is definitely a win-win for both Retalix and MTXEPS employees, customers and partners."

Retalix's share price fell 0.3% on Nasdaq yesterday to $15.09, giving a market cap of $364 million and was down 0.1% in early trading on the TASE today to NIS 51.50.

Friday, July 22, 2011

Bethel Finances: US House C'ttee saves Israeli aid in foreign aid cut

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The US House Foreign Affairs Committee yesterday cut the Obama administration's $51 billion 2012 budget request for the State Department and foreign aid by $6.4 billion, but kept unchanged the $3 billion in military aid for Israel.

Commentators say that the committee vote is a direct challenge to President Barack Obama. The Republican majority in the House of Representatives is trying to limit Obama's freedom of action in handling foreign policy and to minimize US contributions to international organizations - especially the UN. An Israeli source told "Globes" that the Foreign Affairs Committee slashed foreign aid for the Palestinians, Egypt, Lebanon, and Yemen, until the President certifies that these governments are "not directly or indirectly controlled by a foreign terrorist organization", and eliminated military and civilian aid altogether for Pakistan, until the Secretary of State certifies Pakistan's cooperation in the war on terror and the effectiveness of civilian programs.

The Republican majority in the House means that the bill will be easily passed. However, the Democratic majority in the Senate has its own version of the foreign aid and State Department budget bill. The Senate version gives Obama the freedom of action that the House is trying to take away. The joint Senate-House committee will have to reconcile the two versions, and the final version will undoubtedly remove the House clauses limiting the administration.

Bipartisan support for Israel keeps US military aid intact a year after Congress ratified the US-Israeli agreement that formalizes US aid for Israel through 2018. Under this agreement, US aid will increase by $150 million to $3 billion in fiscal year 2012, which begins on October 1, 2011. Aid will increase by another $150 million in fiscal year 2013, and stay at this level until 2018. The bill explicitly includes aid for specific programs, such as anti-missile programs.

The statement by House Committee chairwoman Rep. Ileana Ros-Lehtinen (Republican - Florida) says, “The U.S.-Israel alliance is vital to the safety and security of both nations, and this bill continues Congress’s bipartisan commitment of fully funding security assistance for Israel."

The House bill is strongly pro-Israel, in both operational measures, which stipulate funding levels for Israel, in measures against Arab states, and in declarations. The statement says, "The bill reaffirms support for Jerusalem as Israel’s undivided capital by requiring that Jerusalem be identified as Israel’s capital on relevant US Government documents, and requires the Executive Branch to move the US Embassy in Israel to Jerusalem by the start of 2014. It also expresses Congress’s opposition to the Arab League Boycott of Israel. The bill states that it shall be US policy to uphold the reassurances provided by the President of the United States in an April 2004 letter to the Prime Minister of Israel, which reassured US support for secure, defensible borders for Israel and for Israel’s qualitative military edge, and stated that it is unrealistic to expect negotiated final borders to parallel the pre-1967 lines."

Other clauses stipulate as follows:

  • Prohibits further security assistance to Egypt until the President certifies that the Government of Egypt is not directly or indirectly controlled by a Foreign Terrorist Organization; is fully implementing its peace treaty with Israel; and is actively destroying tunnels used to smuggle materials into Gaza.
  • Prohibits further security assistance to Lebanon until the President certifies that no members of Hezbollah hold policy positions in any ministry, agency, or instrumentality of the government.
  • Prohibits further security assistance to the Palestinian Authority (PA) until the President certifies that no members of Hamas hold policy positions in any ministry, agency, or instrumentality of the government; that the PA is dismantling the extremist infrastructure in Gaza and West Bank; that the PA is actively halting anti-Israel incitement; and that the PA recognizes Israel’s right to exist as a Jewish state.

Bethel Finances: Doctors become more militant in pay struggle

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There is a widening rift between the Israel Medical Association and doctors in the field. Hundreds of specialists at Sourasky Medical Center (Ichilov Hospital) in Tel Aviv today told Medical Association chairman Dr. Leonid Eidelman that he had no authority to sign on their behalf an agreement with the Ministry of Finance that would include time clocks and would, for the first time, require new specialists to work in shifts like interns.

The Ichilov doctors called on Eidelman to hold a "democratic vote" of all doctors before signing an agreement. At the meeting that he convened at the hospital, Eidelman replied that the Medical Association had the authority to sign, because it was democratically elected to represent doctors. He said that he had no intention of holding a vote now.

The Icholov doctors said that Eidelman's stubbornness was liable to split the doctors and the Medical Association. Eidelman replied, "Government officials at the Ministry of Finance and the Ministry of Health are constantly trying to divide the doctors, and they have had a great success."

Yesterday, the National Labor Court issued an injunction banning specialists and other doctors from abandoning the wards in breach of the Medical Association's orders and promise to the court to suspend sanctions until Sunday and resume negotiations. National Labor Court President Judge Nili Arad said that the doctors strike was illegal and unfair.

The doctors chose other measures to bypass the injunction. Doctors at Meir Hospital in Kfar Saba launched a hunger strike, and some specialists at the Rabin Medical Center (Beilinson Hospital) in Petah Tikva and Sheba Medical Center Tel Hashomer hospitalized themselves to create overcrowding in the wards. At the same time, nurses at six wards at Tel Hashomer quit their wards to protest the government's failure to comply with the agreement to add nursing positions.

"Some doctors have already announced that they will go to private medicine or reduce their work in the public health system," Ministry of Health director general Ronny Gamzo told "Globes". "This is a wonderful and most satisfying profession, but I greatly fear that we'll have to deal with these feelings."

Gamzo added that, after an agreement is signed, it will still be necessary to improve the standing of specialists with 5-10 years experience. "We have to find a way to promote them, so we won't lose them," he said.

"I am most worried about what will happen after the strike," Gamzo said, "What will the post-strike do to the doctors, their sense as doctors, love of the profession, the dedication needed, and sense of mission. My great fear is that all this will collapse, and doctors will come to work with a feeling of revenge."

Gamzo said that specialists do not consider the pending agreement as a real solution to the problem of their workload, and that a better solution to the issues of positions and shifts was required. The Ministry of Finance and the Medical Association have already agreed to limit shifts to eight per month and create 650 more positions for specialists.

Thursday, July 21, 2011

Bethel Finances: Gasoline prices set to rise at end of month

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The price of gasoline is set to rise at midnight, July 31, after price cuts in the past two months. The price of self-service 95 octane will rise by NIS 0.25 per liter to NIS 7.50, according to preliminary calculations by the fuel companies. The price hike is due to the rise in the price of oil during July.

The Ministry of National Infrastructures sets the maximum price of gasoline at the end of each month. The price of gasoline is based on the average quotes of CIF La Vera trade prices for fuels in the Mediterranean basin, which are then converted from dollars into shekels.

The price hike could give cottage cheese protesters and the tent camp protestors a new cause.

Bethel Finances: JIMS: Taxes on Israeli homes 75% above OECD average

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Israeli taxes on homes are 75% above the OECD average, claims a study by Jerusalem Institute for Market Studies. The position paper says that the government's housing and dairy products are failures - and that no market failures are involved. The paper also noted that politicians blame the market to cover their own shortcomings.

The Jerusalem Institute cites a World Bank study that ranks Israel in 121st place in the world for efficiency in obtaining building permits, and 147th place for efficiency in obtaining property rights after a real estate purchase. These procedures take four times longer in Israel compared with the OECD average.

The Jerusalem Institute note the heavy tax burden on real estate, which generate 9.4% of the government's tax revenues, compared with the OECD average of 5.4%

"When government measures fail to achieve their desired results, there is a tendency to blame the market," says Jerusalem Institute markets researcher Yarden Gazit, "but in the case of the housing market, the failure is a government failure from A to Z."

Gazit says that government policy is responsible for the price rises for basic food products. "Israel's dairy market is run on the Soviet model. The Israel Dairy Board sets how much milk will be produced, by whom, and the price it will be sold to dairies. Imports and free competition are banned by the Dairy Market Planning Law."

Bethel Finances: Israel bans all economic contacts with Iran

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The Ministry of Finance today issued a directive banning all economic contacts with Iran. The Ministry added that it would apply the international economic sanctions against Iran set out in UN Security Council resolutions.

Minister of Finance Yuval Steinitz sent the draft directive to the Knesset Foreign Affairs and Defense Committee for approval. The draft lists companies with substantial business ties with Iran. Israeli financial institutions will be banned from investment in these companies. The draft also sets out the criteria defining substantial commercial ties with Iran, and companies meeting these criteria will be added to the list.

Steinitz said, "This is an important step in tightening Israel's part in the economic sanctions against Iran, as part of Israel's commitment to international effort to frustrate Iran's ability to develop unconventional arms that threaten Israel and all Western countries."

Bethel Finances: Shekel stable against dollar

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The shekel was stable against the dollar and stronger against the euro in inter-bank trading. The shekel-dollar exchange rate is down 0.04% to NIS 3.418/$ and the shekel-euro exchange rate is down 0.29% to NIS 4.849/€.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at 3.419/$ down 0.58% on the day before, and set the shekel-euro representative exchange rate at NIS 4.863/€, down 0.27%.

Today's market mood is based on yesterday's agreement between France and Germany over Greece's debt, and the latest attempt at a debt deal in the US Senate to raise the debt ceiling. Any deal would still need approval of recalcitrant Republicans in the House of Representatives.

In global macroeconomic news, the HSBC Chinese Manufacturing Purchasing Managers' Index fell from 50.1 points in June to 48.9 points in July, a 28-month low, and below the 50-point dividing line between economic expansion and contraction.

Bethel Finances: Mellanox beats analysts on revenue and profit

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Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) has reported record revenue for the second quarter of 2011. The company, which supplies end-to-end connectivity solutions for servers and storage systems, reported revenue of $63.3 million in the first quarter of 2011, up 15.1% from $55.1 million in the first quarter of 2011, and up 58.5% from $40 million in the corresponding quarter of 2010.

The company reported that GAAP net profit in the second quarter of 2011 was $2.1 million ($0.06 per share), compared with a net loss of $1.6 million ($0.05 per share) in the first quarter of 2011, and $5.3 million ($0.15 per share) in the corresponding quarter of 2010.

Non-GAAP net profit in the second quarter was $10.3 million ($0.27 per share), compared with $9.2 million ($0.24 per share) in the preceding quarter of 2011, and $10.4 million ($0.29 per share) in the corresponding quarter of 2010.

Analysts had expected revenue of $61.8 million and profit of $0.21 per share.

Mellanox said that second quarter 2011 non-GAAP net profit excluded $5.4 million of share-based compensation expenses compared with $4.3 million in the preceding quarter of 2011. It also excludes amortization of acquired intangible assets of $2.8 million associated with the acquisition of Voltaire Ltd. on February 7, 2011, compared with $2.1 million in the first quarter of 2011. The company added that the first quarter 2011 non-GAAP net income results also excluded $4.4 million of other acquisition related charges.

Total cash and investments amounted to $107.1 million at June 30, 2011. The company generated $12.5 million in cash from operating activities during the quarter.

Mellanox chairman, president and CEO Eyal Waldman said, “Reaching the quarter billion dollar annualized revenue run rate is a significant milestone for Mellanox. We completed the successful integration of Voltaire into Mellanox, and during the quarter we introduced our end-to-end FDR 56Gb/s InfiniBand and 40 Gigabit Ethernet interconnect solutions. We are encouraged by the momentum of design-wins and traction we see in various vertical markets and applications for these solutions.”

The company's share price closed at $29.01 on AMEX yesterday, giving a market cap of $1.01 billion. The share price rose 6.86% in after-hours trading to $31 after publishing its financial results.

Isra-Mart srl: Thu: Tel Aviv 25 up 1% on week

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The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 Index rose 0.34% to 1,263.47 points, the Tel Aviv 100 Index rose 0.29% to 1,146.08 points, but the TechBlue 50 Index fell 0.08% to 285.53 points. Turnover was NIS 1.47 billion.

After losing ground in morning trading, the leading TASE indices recovered to end the day with gains. The Tel Aviv 25 Index rose 1% for the week.

In the bond market, long-term Shahar unlinked government bonds rose by up to 0.1%, but long-term Galil CPI-linked bonds fell by up to 0.1%. The corporate bond benchmark Tel-Bond 20 Index fell 0.08%.

In the foreign currency market, the shekel-dollar representative exchange rose 0.26% to NIS 3.428/$, but the shekel-euro representative exchange rate fell 0.22% to NIS 4.852/€.

In the stock market, Tamar partner Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) rose 4.8% for the biggest gains among Tel Aviv 25 shares, on the day's second largest turnover, amid market assessments that the Tamar partner will soon sign a gas supply contract with Israel Electric Corporation (IEC) (TASE: ELEC.B22).

Isramco's Tamar partners Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) rose 2.5% and 2.7%, respectively, while their parent company, Delek Group Ltd. (TASE: DLEKG), rose 1.3%.

Israel Corporation (TASE: ILCO) rose 2.3% on the day's largest turnover of NIS 131 million, after its controlling shareholder loaned shares in the company.

Paz Oil Company Ltd. (TASE:PZOL) rose 0.6% to NIS 573.50, despite a downgrade to "Market perform" with a target price of NIS 626 by Bank Hapoalim, which cited intensifying competition and slower growth in fuel consumption.

Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) fell 1.2% for the biggest drop among Tel Aviv 25 shares, closing its negative arbitrage gap with Nasdaq.

IDB Holding Corp. Ltd. (TASE:IDBH) unit Property and Building Ltd. (TASE: PTBL) rose 3.3% following the success of a bond offering. The company doubled the offering to NIS 400 million, after it was oversubscribed four-fold.

Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) rose 3.4% after publishing strong second quarter financials

Bethel Finances: Egyptian minister wants to end Israel gas agreement

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Egyptian Minister of Petroleum Abdallah Ghorab is threatening that Egypt will seek the cancellation of the current gas supply agreement with Israel, and at the same time will demand a new price from Israel, Egyptian daily "Youm 7" reports.

A senior source close to Ghorab is quoted as saying that Egypt is preparing a request to an international arbitration tribunal to end the agreement. The reference is apparently to the International Centre for the Settlement of Investment Disputes in Washington DC, to which East Mediterranean Gas (EMG), the company that exports Egypian gas to Israel, intends to submit a claim for $8 billion damages against Egypt.

The source quoted in the article comments on EMG's claim, and says that Egypt will demand that the company should raise the value of the deal with Egypt to $10 billion. The current value of the deal is not known. The source is further quoted as saying that the attacks on the gas pipeline to Israel in the Sinai will continue unless implementation of the agreement in its present format is halted.

This contrasts with Israeli intelligence assessments that the central government in Egypt has no control over the attacks on the pipeline, which have led to the cutting off of supplies to Israel and Jordan three times this year. Supply has yet to be restored after the most recent attack. Israel's assessment is that past declarations by senior Egyptian figures were aimed at domestic political needs in Egypt.

A Merhav spokesperson told "Globes", "We suggest taking the reports in the Egyptian press and media with a pinch of salt. What the international investors in EMG have to say, they will say to the International Centre for the Settlement of Investment Disputes in Washington." The same source added that the investors were sure that Egypt would not allow damage to the international investors in a way that would deter other international investors from investing in the country."

EMG is owned by Egyptian businessman Hussain Salem, Egypt Natural Gas Co, Thailand's PTT Public Co. Ltd., EGI chairman Sam Zell, and Yosef Maiman through Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) and his private company Merhav Ltd.

Wednesday, July 20, 2011

Bethel Finances: Shekel strengthens against dollar and euro

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The shekel is strengthening against the dollar and euro in inter-bank trading today. In the early afternoon, the shekel-dollar exchange rate was up 0.61% to NIS 3.418/$ and the shekel-euro exchange rate was up 0.25% to NIS 4.864/€.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.439/$, down 0.38% on the previous day, and set the shekel-euro representative exchange at NIS 4.876/€, up 0.52%.

"The dollar will probably continue to weaken in international markets over the coming months, and we do not expect to see a turnaround in US monetary policy until next year, and the shekel will continue to receive a tail wind in the world, in part because of Israel's robust economy," says USG Capital.

USG analysts Eli Ben-David and Shay Zakhaim say that markets are responding to current developments in the US and worries that the debt ceiling will not be raised by August 2, resulting in a default, market turmoil, and another financial crisis.

In Israel, the analysts predict that inflation will reach 4.5%, and they also predict more intermittent interest rate hikes to 4% by the end of the year. On the macro side, they note the continued increase in industrial output, reported by the Central Bureau of Statistics yesterday. Industrial output was 5.9% higher in March-May 2011 than in the corresponding months of 2010, and industrial output growth, excluding high tech, was 8.4%.

Bethel Finances: Fattal Hotels floats Leonardo on TASE

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Fattal Hotel Management Ltd. will float its European Leonardo brand hotel business on the TASE through a reverse merger with Tamir Fishman Real Estate Ltd. (TASE: TFRE).

Tamir Fishman Real Estate's board of directors approved the deal. Fattal Hotel will transfer 90% of its Leonardo operations to the company in exchange for a 90% stake in it. Fattal Hotel provisionally estimates the value of the business at €142.4 million. The non-binding estimate is seven times more than earlier estimates of NIS 100 million.

The Leonardo brand has 34 hotels in Switzerland, Germany, and Belgium.

Tamir Fishman Real Estate is a venture of Tamir Fishman Investment House Ltd. that has operations. Tamir Fishman Real Estate's share price rose 6% by midday to NIS 1.98, giving a market cap of NIS 41 million.

Bethel Finances: Schoolbook math lesson: "Globes" finds huge mark-up on print costs

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Price of Israeli schools books are inflated. An investigation by "Globes" and an inquiry commissioned by Minister of Interior Eli Yishai found a huge mark-up between the books' product costs and their retail price.

For example, the Yishai inquiry found that a Grade 10 math book that costs NIS 10 to print costs NIS 98, and that an atlas, which costs NIS 14 to print, is sold for NIS 189. The printing cost of books included in the inquiry was NIS 6-17, but the retail mark-up reached as high as 800%.

"School books are the only product that the government compels parents to buy, and we should therefore be the regulator. But we're not doing enough," said Yishai. "The government should intervene on the prices."

Israel's school market turnover is NIS 600 million a year. According to the Statistical Abstract for 2010, Israel has 1,483,000 pupils in Grade 1-12, which means that tens of thousands of copies of each textbook are sold every year.

Bethel Finances: Students step up housing price protests

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Following yesterday's promise to intensify the struggle, students today announced that the Jerusalem tent protesters will hold a protest march this evening to the Kfar David luxury neighborhood. Protesters in the Jerusalem encampment have received support from the leader of another recent protest - Yitzhak Alrov, who led the cottage cheese protest just a few weeks ago and received tremendous public support.

Student protests in northern Israel are also expected to intensify, as representatives of the Tel-Hai College Student Union plan to block traffic at the Sinai intersection in Kiryat Shmona.

The National Student Union reported that this is only a first step in the intensification of the struggle, and that they intend to follow up soon with additional measures.

Bethel Finances: Elbit Systems unit wins Boeing components deal

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Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) US unit M7 Aerospace LP has won a three-year contract from The Boeing Company (NYSE: BA) to supply inboard flap assemblies for the KC-135 Stratotanker. Elbit System said that the size of the contract is immaterial to the company.

The four-engine KC-135 is the predominant US Air Force tanker aircraft in operation. Inboard flaps, located on trailing edge of an aircraft's wing, increase lift, allowing the aircraft to fly at a lower airspeed for takeoff and landing.

M7 Aerospace has been a supplier of sheet metal details, machine parts, spoilers and other assemblies to Boeing for many years. The assemblies are for the KC-135, CH-47 Chinook helicopter, C-130 Hercules cargo plane, V-22 Osprey, and other aircraft.

San Antonio-based M7 Aerospace is a wholly-owned subsidiary of Elbit Systems of America LLC. Elbit Systems' share price rose 2% on Nasdaq yesterday to $47.34, giving a market cap of $2.02 billion, and rose 0.6% by midday on the TASE today to NIS 162.50.

Bethel Finances: Cel-Sci expands Teva's Multikine cancer license

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Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and Cel-Sci Corporation (AMEX: CVM) have expanded their licensing agreement for Cel Sci's head and neck cancer treatment Miltikine,. Cel-Sci expanded Teva's exclusive marketing license for the drug from Israel and Turkey to Croatia and Serbia.

Multikine is undergoing a global Phase III clinical trial, including at three hospitals in Israel, which Teva is funding. Teva will bear the registering and selling costs of the drug in Serbia and Croatia and will pay Cel-Sci milestone payments after the drug is approved. The two companies will share the revenue generated in all four countries.

The Israeli trial will begin at Soroka Medical Center in Beersheva, where registration is due to begin shortly. The full global trial is due to include 880 patents at 40 hospitals in nine countries. Taiwan's Orient Europharma Co. Ltd. (Taipei: 4120) is also a party in the Multikine clinical trial, which aims to set a new standard of treatment for head and neck cancer. The Phase II clinical trial found that Multikine killed 12% of the cancer cells within a month, and the treatment regime can kill half the tumor cells before chemotherapy begins, boosting patients' survival rates by 33%.

Cel-Sci CEO Geert Kersten said, “We are pleased to expand our relationship with Teva. Strengthening this relationship will help in maximizing Multikine’s potential in developing markets while retaining rights to market Multikine in North America and most of Europe."

Teva's share price rose 1.1% on Nasdaq yesterday to $47.80, giving a market cap of $44.9 billion, and rose 0.1% by mid-afternoon on the TASE today to NIS 164.20.

Bethel Finances: Gov't thwarts affordable housing bill

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At the height of the tent protests against soaring home prices, Prime Minister Benjamin Netanyahu has kept his promises of "surprises" made to the protestors. The coalition today blocked the inclusion of an affordable housing clause in the planning and building bill that is part of his real estate reform.

Netanyahu, Minister of Finance Yuval Steinitz, and Minister of Housing and Construction Ariel Atias all voted against the private member's bills submitted by MK Shlomo (Neguse) Molla (Kadima). The vote was 48:40.

Molla's amendment proposed authorizing local planning and building commissions to expropriate land for affordable housing and to authorize municipalities to allot the land or buildings for this purpose.

During the vote, Minister of Interior Eli Yishai told Molla, "Withdraw this bill because I will submit it next week to the ministerial legislative committee." Molla refused, and Yishai said, "Shas will promote anything to solve the housing crisis. It's a pity that Kadima is running after headlines and ignoring the public."

Even though Netanyahu beat back Molla's initiative, this evening, he is convening a special meeting with Atias and Steinitz to try to come up with additional solutions for the housing shortage and expediting housing starts. Atias will apparently demand a 50% cut in land prices in rental tenders, and higher reductions in the periphery. He has been urging this proposal for months in the face of fierce objections by the Ministry of Finance.

Netanyahu is also apparently trying to find solutions for high rents, one of the main causes of the tent protests. Activists have set up hundreds of tents in city centers across the country, including on Rothschild Boulevard in Tel Aviv, to pressure the government to find housing solutions.

The protestors in the Tel Aviv tent town have scheduled a press conference this evening, after Netanyahu's meeting to respond to whatever emerges from it.

Bethel Finances: Globe Exploration to drill Ofek 2 well

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Globe Exploration LP (TASE: GLEX.L) will drill an exploratory well at its wholly-owned onshore Ofek license near Moshav Nir Zvi in central Israel. The well will cost $5.1 million.

Drilling the Ofek 2 well is scheduled to begin in 4-8 weeks, after the Ofek 1 well is completed. Drilling is due to take 8-12 weeks, and be finished by the end of the year. The well will go to strata depths of 5,240-5,950 meters.

The best estimate of unrisked prospective resources at the Ofek license is 17.9 billion cubic meters of natural gas with a geological chance of success of 29.4%. The company says that the exploratory well is justified given the current price for natural gas.

The Ofek 2 well is in the same location of the David 1 well, dug in 1993-95, which was halted for technical reasons without examining Permian strata. Turkey's .Güney Yildizi Petrol AS is the drill operator.

Globe Exploration was founded in October 2009, and its controlling shareholders transferred to it the Ofek license, the Bar-Or license in the Western Galilee, and the Yahel license in Haifa Bay. The company raised NIS 47.7 million in its IPO in June 2010.

Globe Exploration's share price fell 5.1% in morning trading to NIS 0.056, giving a market cap of NIS 122 million.

Tuesday, July 19, 2011

Bethel Finances: State of Economy Index growth slows

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The Composite State of the Economy Index rose by 0.2% in June 2011, and by 2.7% in the first half of the year, the Bank of Israel reported today. Although the index figure reflects continued economic expansion, the growth slowed in the second quarter compared with preceding quarters.

Gains in the industrial manufacturing and the trade and services proceeds indices drove the growth, but were partly offset by drops in the imports of goods and the exports of goods indices.

Monday, July 18, 2011

Bethel Finances: Shekel weakens

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The shekel weakened slightly in morning local foreign currency trading against both the dollar and the euro, in response to Israel's Consumer Price Index (CPI), which was published on Friday. The CPI rose 0.4% in June as expected.

In inter-bank trading, the shekel-dollar exchange rate is up by 0.5%, at NIS 3.44/$. The shekel-euro exchange rate is up by 0.2%, at 4.872/€.

In international markets, the euro has weakened by 0.4% against the dollar and is trading at $1.406/€.

Israel's Consumer Price Index (CPI), which was published on Friday, rose 0.4% in June as expected. The inflation rate had risen for two consecutive months and has risen 4.2% over the last twelve months.

Following the rise of the CPI, economists at Excellence Nessuah say that, "the interest rate decision for next month will not be simple." They explain that the renewed rise in short-term inflation expectations (1-3 years), which are at the upper limit, and a renewed rise in energy prices, will only make the decision even harder.

Housing prices are expected to rise (according to the Central Bureau of Statistics), as well as food prices, and current estimates are that there will be accelerated global growth in the next six months, which will once again accelerate local growth. In addition, central banks in developing countries (with "problems" similar to Israel) have recently increased interest rates. On the other hand, the debt crisis in Europe and in the US, the economic uncertainty about growth rates and the slowing down of growth in Israel and globally, and another delay in the US and in Europe in raising interest rates, increase the likelihood that the interest rate this time around will remain unchanged.

The economists believe that, "if there is not a significant deterioration in the markets, the Bank of Israel will raise interest rates by 0.25% as a result of the recent increase in inflation rates and the continuing rise in housing prices."

In contrast, Meitav Investment House Ltd. chief economist and strategist Ron Eichel believes that, "the gap between current Bank of Israel interest rates and interest rates that are considered 'normal', allows degrees of freedom in the pace of interest rate rises, so that it will be possible to step up the pace if necessary even without raising interest rates in July."

Friday, July 15, 2011

Bethel Finances: Shekel stable against dollar as debt crisis drags on

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The shekel is stable against the dollar in morning inter-bank trading, but is weakening against the euro, despite the debt crisis in Europe. The shekel-dollar exchange rate is down 0.15% to NIS 3.432/$, but the shekel-euro exchange rate is up 0.72% to NIS 4.874/€.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.437/$, down 0.81% on the day before, and set the shekel-euro representative exchange rate at NIS 4.839/€, down 0.1%.

In international markets, the dollar is trading at $1.42/€ against the euro and at ¥79.13/$ against the Japanese yen. Foreign currency trading is taking place following successful bond offerings by Italy and Spain is easing worries that Greece's debt crisis could spread to them.

Another factor is the deadlock in Washington over raising the US dept ceiling, currently at $14.3 trillion, and more warnings by Moody's of a possible sovereign debt downgrade and placing on the credit watch list.

"When many traders are negative about the shekel-dollar exchange rate, the euro is sensitive to a short squeeze, but the forecast for the shekel-euro exchange rate remains problematic because the European authorities have been unable to offer a sustainable solution to the sovereign debt problem," said GFT currency analyst Boris Schlossberg.

Bethel Finances: Tshuva, Ofers inject funds into cash-strapped Gadot Biochemical

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Delek Group Ltd. (TASE: DLEKG) subsidiary Gadot Biochemical Industries Ltd. (TASE: GDBC) is one of the smaller companies in Yitzhak Tshuva's portfolio, but the companies financial trouble and burgeoning debt has forced him and his partner in the company, the Ofer family, to inject tens of millions of shekels into it. Delek Group owns 65.7% of Gadot, and Ofer-controlled Israel Corporation (TASE: ILCO) subsidiary Oil Refineries Ltd. (TASE:ORL) owns 23.5%.

Gadot Biochemical produces ingredients and fine chemicals for the food and beverage, cosmetics, detergents, and pharmaceutical industries. Problems with the company's new facility in China, whose set-up went over budget and is still not in full production, has resulted in liquidity problems. In addition, sugar prices for fructose production have soared, while margins on lemon acid - two of the company's main products - resulted in a cumulative loss of NIS 23 million in 2010 and the first quarter of 2011.

Gadot Biochemical's debt totals NIS 320 million: NIS 200 million in bonds, which now bear a yield of 19.6%; NIS 67.5 million in short-term bank loans; and $15 million to Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), which in June 2010, provided a seven-year loan bearing 8.9% interest.

Gadot Biochemical has taken two measures to ease its financial situation: it rescheduled a $11 million loan to a Chinese bank, which was due to be repaid in June; and Harel eased the financial covenants on its loan in exchange for raising the interest rate by 50 basis points.

Gadot Biochemical's big test comes in November, when it will have to pay bondholders NIS 55 million. According to the company's projected cash flow report, published in May, it can meet its liabilities through the end of the year with owners' loans or a $15 million rights issue, and by raising $20 million in a new bond. The last option seems improbable, in view of the current bond's low rating and high yield.

Gadot Biochemical's heavy expenditures this year are partly because it still has to support its Chinese subsidiary; it estimates that $7.5 million will need to be injected into these operations through the end of this year.

Tshuva and the Ofers have twice injected capital into Gadot Biochemical so far this year, through rights issues. If Gadot Biochemical cannot meet its upcoming bond payment from other sources, such as from debt recycling funds, they will probably continue injecting capital into the company, beyond what has already been committed.

Tshuva and the Ofers' support for Gadot Biochemical is because Delek and Oil Refineries, respectively, have multibillion shekel debts of their own to bondholders, and the companies are unlikely to get entangled with the capital market over a mere NIS 200 million. A debt settlement therefore seems likely, probably without a haircut for bondholders, with Tshuva and the Ofers guaranteeing the upcoming bond payment, in the hope that 2012 will have positive cash flow.

Gadot Biochemical's share price fell 1.1% by mid-afternoon today to NIS 2.28, giving a market cap of NIS 42 million.

Bethel Finances: Mizrahi CEO: Rise in home prices has ended

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"Israel's mortgage market is not isolated from the household credit market, and the amount of credit for household consumption in Israel is the lowest in the Western world," Mizrahi Tefahot Bank (TASE:MZTF) CEO Eli Yones told "Globes" in an interview.

Yones added, "We've seen in the past how an economic slump does not affect households' responsibility to meet their debts. Even someone who has been fired will continue to pay his debts when he finds a new job, unless there is a catastrophe, such as 25% unemployment."

Yones said, "The sharp rise in home prices has stopped. A person who bought land at NIS 1.2 million per apartment in a middle-class residential neighborhood because he thought that prices would continue to rise, will have to sell at a loss. Whoever financed him should be very wary and not sleep calmly at night."

As for bank fees, Yones said, "It is populism to wage war against bank fees, but the cost of bank services has fallen sharply in recent years, and is very low by international standards. Meanwhile prices for products like cottage cheese, pasta, cars, and gasoline have risen 30-40% and are very high by international standards."

Bethel Finances:US businessmen buy Beitar Jerusalem from Gaydamak

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Arcadi Gaydamak has reached an agreement to sell Beitar Jerusalem to US businessmen Dan Adler and Adam Levin. Gaydamak acquired the Ligat Ha'al soccer team in 2005 and won back-to-back league championships in 2006/07 and 2007/08. Under his ownership, the team also won two Israel FA Cups in 2007/08 and 2008/09.

However, Gaydamak lost interest in the team after the economic crisis of 2008. He reportedly invested more than $100 million in the team, mainly before the crisis, which hit his business empire hard.

It is unclear how much Adler and Levin are paying for the club, if anything. But their intervention comes just after the team agreed a budget of NIS 25 million for next season, and one of the new owners first tasks will be to put at least NIS 10 million into the club, which is on the brink of bankruptcy.

Gaydamak is one of several foreign Jewish owners who put money into Israeli soccer clubs but have now pulled out including Daniel Jammer at Maccabi Netanya and Alex Shnaider at Maccabi Tel Aviv.

Beitar Jerusalem spokesman Assaf Shaked confirmed that Gaydamak had sold the club. He said, "Beitar has passed into the hands of new owners. This is a happy moment for the club and the fans. We have been through a difficult period recently."

The deal was reportedly brokered in London over the past few days where club chairman Itzik Kornfein met with Adler and Levin, who are both known as generous donors to Israeli causes.

Bethel Finances: Simhon rejects price controls on dairy products

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Minister of Industry, Trade and Labor Shalom Simhon today rejected reimposing price controls on dairy products. "There is a place for regulatory oversight, but not price controls, which would create empty shelves as in Eastern Europe," he said at the "Globes" 2011 Media, Communication and Digital Conference today.

Simhon promised to cut dairy prices by 10% and create competition in the market, which he claims will reduce prices by a further 10% over the next three years. "We must protect Israeli agriculture. Beyond its economic value, there are national values. We must protect Israeli industry, Israeli manufacturing that we built with our ten fingers and which no one will take away from us. But at the end of the day, we have an obligation to the Israeli consumer."

Simhon said that Israel's dairy economy was "number 1 in the world". He added, "This is a NIS 7 billion a year market, and we intend to reduce it by NIS 700 million. For this to happen, we must deal with a long line of factors along the production chain. Changes are being made, including the target price of milk. We'll make changes so we won't through out the bucket with the milk. Prices for raw milk will be slashed for dairies. Farmers will have to do their bit."

Simhon promised, "We will create competition in the dairy market so that we can produce more milk to bargain with the dairies. We'll open the market to imports of powdered milk and hard cheeses. We'll create competition on a scale so that they will achieve 10% of the industry's total volume within three years."

Bethel Finances: Hizbullah saber rattles over gas border dispute

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“They must bear in mind that Lebanon will not tolerate having its oil seized and will restore all its rights no matter the cost," Hezbollah Deputy Secretary General Sheikh Naim Qassem said yesterday, claiming that Israel wants to deprive Lebanon of its water, gas and oil resources.

Qassem added, “Hezbollah will support Lebanon’s government in all its decisions and choices regarding the demarcation of maritime borders locally, regionally and internationally."

The remarks came after Israel cabinet approved on Sunday a map demarcating the borders of Israel's exclusive economic zone in the Mediterranean. Lebanon disputes the border.

Bethel Finances: 3 countries interested in Iron Dome - report

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"Israel Defense" reports that three countries are interested in procuring the Iron Dome anti-missile defense system, which proved its operational capability earlier this year. Two Asian countries are actively examining the system, made by Rafael Advanced Defense Systems Ltd., and military representative may soon visit Israel for a demonstration.

A defense official told "Israel Defense", "There is a potential market of hundreds of millions of dollars."

A US expert team is due to shortly arrive in Israel to examine Iron Dome. "The Americans understand that this is the only solution against rockets and mortars threatening local forces around the world," the source said.

Until Iron Dome became operational, and successfully intercepted Grad rockets that Hamas fired against Ashkelon, the US considered Iron Dome as only a partial solution. But the Americans changed their minds, following the speed at which the system was made operational and the information provided on tests and operational interceptions. Until then, the US was focused on the Magic Wand anti-missile system that Rafael is jointly developing with Raytheon Company (NYSE: RTN) in part with US funding.

An Israeli defense source says that the US's understanding of Iron Dome came late. "They now realize that there has been a technological achievement that provides a response to a huge problem of theirs," said the source.

One of Iron Dome's most important successes is its radar system developed by Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) subsidiary Elta Systems Ltd. The radar can distinguish between threats to a populated area and incoming rockets that will hit open ground, avoiding firing interceptors unnecessarily, and preventing the enemy from saturating defenses.

The Iron Dome system costs $15 million and each interceptor missile costs $40,000.

Bethel Finances: Energix invests NIS 45m in Golan wind energy projects

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Energix Renewable Energies Ltd. (ENRG) yesterday announced its first deal since its IPO in May: it will acquire the 50% rights of Multimatrix Ltd. (TASE: MLTX) to the Golan wind turbine project for NIS 45 million.

Multimatrix is selling its stake in the project for the same amount it acquired it from Mei Golan Wind Energy Development (1988) Ltd., owned by the Harel and Melamed families, plus a few million shekels in repayments on the loan that the company took to finance its deal. Multimetrix has an option to buy back 25% of the project, in two stages, subject to due diligence and other terms.

Energix will now own half of the Golan wind venture, and the other half will be owned by the venture's founders Avraham and Eyal Melamed, and Tzahal Harel, through Mei Golan. The venture owns 70% of a six-megawatt wind farm (which can be expanded to 14 megawatts). It also plans to build a 155-megwatt wind farm, which has been declared a national project, with AES Corporation (NYSE: AES). Mei Golan and AES are also planning a 255-megawatt wind farm.

Energix is a spin-off of Alony Hetz Property and Investments Ltd. (TASE: ALHE) subsidiary Amot Investments Ltd. (TASE:AMOT). Energix raised NIS 150 million in its IPO. Energix installs, operates, and sells small 50-kilowatt photovoltaic systems, and has NIS 3 million in annual income. It lost NIS 1.1 million on NIS 600,000 in the first quarter.

Energix's share price rose 2.5% in morning trading today to NIS 1.19, giving a market cap of NIS 158 million.

Isra-Mart srl: Africa-Israel completes sale of part of old NY Times bldg

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Africa-Israel Investments Ltd. (TASE:AFIL) subsidiary AFI USA Inc. has completed the sale of nine floors in the old New York Times building in Manhattan for $160 million to Blackstone Group LP, after obtaining approval from the New York State Department of Law. AFI USA will report a pretax capital gain of $2 million on the sale.

AFI USA and Five Mile Capital Partners own the property in equal shares.

The sale reduces Africa-Israel's debt on the property to $186 million.

Africa-Israel still owns 22,000 square meters of retail space in the old New York Times building, after selling 32,000 square meters to Blackstone.

Africa-Israel, controlled by chairman Lev Leviev, bought the old New York Times building for $716 million in 2007, which was mostly financed with bank loans. In the wake of the US real estate crash, the building's value was cut by $500 million, causing Africa-Israel heavy losses. After violating the financial covenants of the loan, the company reached a debt settlement in late 2009 on the property, which resulted in a $370 million accounting gain.

AFI USA CEO Tamir Kazaz said, "The successful rezoning and debt reduction on the Times Square building, together with the repositioning of the building has enabled the company to maximize its value, as demand for office space in midtown Manhattan picks up."

Africa-Israel's share price rose 0.9% in morning trading today to NIS 21.90, giving a market cap of NIS 2.57 billion.

Bethel Finances: 7 cos in Road 6 northern extension tender

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Seven companies have entered the prequalification (PQ) stage of the tender to build the northern extension of the Road 6 (Cross-Israel Highway or Yitzhak Rabin Highway) toll road. The estimated cost of the project is several hundred million shekels, and is part of the NIS 27.5 billion Netivei Israel project.

The bidders are as follows:

The BOT tender is for the construction of two contiguous sections of Road 6 (sections 7 and 13), and maintaining them for 25 years. At Yokne'am, the present northern terminus of Road 6, it will split into two directions. The current tender is for the western fork, which will run from Ein Tut Junction via Tel Kashish Junction to Somekh Junction in the Western Galilee. The 20-kilometer section will include a four-kilometer tunnel.

The bids will be examined by a joint committee Ministry of Finance and Ministry of Transport, together with the Cross Israel Highway Company Ltd. The committee is due to announce which companies passed the PQ stage by the end of September.

Bethel Finances: Facebook launches Israeli mobile application

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Facebook yesterday launched its new mobile application, "Facebook for Every Phone", based on software developed by Israeli start-up Snaptu Ltd., which Facebook acquired for $60-70 million in March. This was Facebook's first acquisition in Israel.

The application provides fast and easy access to simple mobile phones (i.e. not smartphones such as iPhones and Androids) that lack advanced operating systems. The application provides a Facebook news feed, messages box, events, alerts, requests for friendships, images, a members' list, personal profile, and general search function. These features already existed in Snaptu's application, which continues to manage the software itself.

Two features were added to the Facebook application: adding friends from the list of contacts in the mobile phone or by SMS or e-mail to an individual; and a link to Snaptu's mini app store.

It is not clear why Facebook waited four months to launch the application, which is almost identical to Snaptu's application, as both target regular mobile phones. Facebook plans to promote the application for 2,500 models of mobile phones, in order to boost the number of users with Internet access. There are 250 million such users.

Facebook has reached agreements with 20 mobile operators in 13 countries, including the UK, India, Turkey, Germany, and Indonesia. It is not known yet if Facebook has agreement with Israeli mobile carriers. Facebook will subsidize users' access cost via the application for three months, in order to encourage them to use it use up part of their Internet access plans.

Facebook's launch of the mobile application is important for the social network to compete against Google Inc's (Nasdaq: GOOG) entry into the field through its recently launched Google Plus. Google has developed a Google Plus application for Android, which will soon become available for iPhone, and also launched access to Google Plus from other mobile phones.

Bethel Finances: Teva completes $934m Taiyo acquisition

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Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) today completed its acquisition of Taiyo Pharmaceutical Industry Co. Ltd. for $934 million in cash.

As with all of Teva's acquisitions, it expects Taiyo's results to positively accrue to its earnings per share within a year.

Taiyo is Japan's third largest generics manufacturer with $530 million in sales in 2010. Taiyo brings to Teva a portfolio of over 550 products and a strong presence in all major channels in the Japanese pharmaceutical market. Teva also gains access to Taiyo's strong R&D team, local regulatory expertise and a state of the art production facility. Teva expects that the acquisition will boost its sales in Japan to $1 billion, ahead of its original 2015 target.

Teva president and CEO Shlomo Yanai told "Globes", "This is an important milestone in executing Teva's long term strategic plan. The acquisition of Taiyo, along with Teva's existing Japanese business, assures that Teva will deliver on our strategic objective of becoming a leading player in Japan."

Teva's Japanese operations include a joint venture with Kowa Pharmaceuticals Ltd., Teva-Kowa Pharma Ltd., which acquired Taisho Pharmaceuticals Ltd. Teva recognizes only part of the venture's revenue, in line with its agreement with Kowa. Teva also has independent brand drugs and active pharmaceutical ingredients operations in Japan.

Teva's acquisition of Taiyo is separate from Teva-Kowa Pharma. Yanai told "Globes" that Teva did not expect to make a write-down for goodwill on the acquisition. "The Japanese pharmaceuticals market is the world's second largest market after the US," said Yanai. "The US market amounts to $350 billion, and the Japanese market amounts to nearly $100 billion. However, 75% of the US market is generics, compared with 23% in Japan. This shows why we think that there's great potential in Japan."

Teva's share price rose 0.4% on Nasdaq yesterday to $49.23, giving a market cap of $46.3 billion, and rose 0.9% in early trading on the TASE today to NIS 171.50.

Wednesday, July 13, 2011

Bethel Finances: Shekel strengthens amid volatile global markets

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After several days of falls, the shekel is strengthening against the dollar and euro in morning inter-bank trading today, amid volatile global markets, over the debt crises in Europe. The shekel-dollar exchange rate fell 0.46% to NIS 3.449/$ and the shekel-euro exchange rate fell 0.24% to NIS 4.831/€.

In the foreign currency market yesterday, the shekel-dollar representative exchange rate was set up 0.90% to NIS 3.465/$ and the shekel-euro representative exchange rate was set up 0.15% to NIS 4.844/€.

In international markets, the dollar strengthened against the euro to $1.40/€, but weakened against the Japanese yen to ¥79.54/$.

Yesterday, Merrill Lynch warned that the debt crisis in Italy had repercussions beyond the eurozone. Bond yields for Italian and Spanish government bonds soared, and new concerns were raised about insolvency by Greece. Fears were briefly alleviated when Italy succeeded in raising €6.75 billion in new bonds, amid rumors that the European Central Bank was one of the buyers. Later, however, Moody's Rating Services downgraded Ireland's government from Baa3 to Ba1 - junk bond status - with a "Negative" outlook.

Bethel Finances: Solel Boneh doubles Nigerian road project to $420m

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Shikun u'Binui Holdings Ltd. (TASE: SKBN) unit Solel Boneh International Ltd. has signed an agreement with the Nigerian government expand the Eket-Port Harcourt expressway project in eastern Nigeria. The additional work adds $190 million to the original project, bringing the total project to $420 million.

Solel Boneh will widen and upgrade the road into an expressway and build a bridge over the Imo River. The project will be carried out through 2013.

Solel Boneh has a number of ongoing road contracts with the Nigerian government, including a four-year $290 million project widen and upgrade the 52-kilometer road between Ibadan and Ilorin in southwest Nigeria.

Bethel Finances: 15 Israeli start-ups join Bootcamp Ventures US tour

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15 digital media, IT, and mobile start-ups are participating in Bootcamp Ventures' Israel Innovation: Boston & New York Road Trip to meet potential investors and high-tech industrialists.

Bootcamp Ventures is a start-up advisory firm with offices in Tel Aviv, New York, and Istanbul. The road trip's objective is to provide a stage for start-ups to present their wards, and obtain advice, ideas, and proposals for investments and collaboration.

Bootcamp Ventures says that the 15 start-ups were chosen following interviews and meticulous screening of applicants to find the most promising companies at Israel's technology incubators. Each start-up will have a six-minute presentation before venture capitalists, followed by one-on-one meetings.

The 15 start-ups are:

  • Active Insight Ltd., which is developing a SaaS product for customer acquisition optimization:
  • AnyClip Ltd., which allows third-party sites to provide their users with movie content services;
  • CallApp, a mobile application that turns a mobile network into a social network;
  • Funtactix Ltd., a web-based gaming platform for social networks;
  • Gamingo Ltd., a developer of fantasy and other sports entertainment games;
  • Guerillapps, a vertical social gaming platform targeting lifestyle and health moms;
  • MobileResearch Labs Ltd., a technology which can spot personal and public media exposure and preferences in real time;
  • Roaste.com, an online coffee shop;
  • Superfly, which collects and analyzes a user's travel patterns, offering ways to save money;
  • TicTacTi Ltd., an in-game advertising platform;
  • Tracx, which maps big social data to identify untapped audiences in real time for marketers;
  • Visual Bee Ltd., an automatic graphic designer for PowerPoint presentations using artificial intelligence;
  • XyDex Technologies Ltd., which develops business software and management tools for small and medium businesses and organizations;
  • YellowBrck, a mobile app for parents.