Wednesday, November 30, 2011

Bethel Finance: Discount Investment loss widens seven-fold

www.bethelfinance.com

Bethel Finance news:

Discount Investment Corporation (TASE: DISI), the main holding company of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH) posted a net loss of NIS 1.37 billion (NIS 16.10 per share) for the third quarter of 2011, a seven-fold increase on its loss of NIS 187 million for the corresponding quarter of 2010. Bad bets on investment in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) through Koor Industries Ltd. (TASE:KOR) and on the Plaza casino in Las Vegas through Property and Building Ltd. (TASE: PTBL), were the main reasons for the dismal results.

Koor contributed NIS 1.02 billion to Discount Investment's net loss for the third quarter, compared with a loss of NIS 226 million for the corresponding quarter, while Property and Building contributed a loss of NIS 335 million, compared with a contributing profit of NIS 31 million for the corresponding quarter.

Discount Investment's other key holdings, including mobile carrier Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and supermarket chain Shufersal Ltd. (TASE:SAE) also reported much lower profits for the third quarter than for the corresponding quarter. Cellcom's contribution was almost halved to NIS 86 million for the third quarter from NIS 161 million for the corresponding quarter, and Shufersal's contribution fell to NIS 14 million from NIS 34 million.

Other holdings, including Discount Investment's life sciences investments arm Elron Electronic Industries Ltd. (TASE: ELRN), newspaper and publisher Ma'ariv Holdings Ltd. (TASE: MARV-M), faucets and valves maker Ham-Let (Israel-Canada) Ltd. (TASE: HAML), and endoscopic Pillcam maker Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) were immaterial by comparison.

Trading in Discount Investment's share will resume at 2:14. The share price fell 0.8% before trading was suspended to NIS 25.96, giving a market cap of NIS 2.2 billion.

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