I BUSINESS
Investing in Israe
The Michigan Israel Investment Club is taking
its business to the Israeli stock market
Eli Scherr and Rick Rosenhaus study Israeli
investment options.
LAURIE MAYERS
Special to The Jewish News
40 FRIDAY, DECEMBER 9, 1988
he chief goal of the Michigan
Israel Investment Club is
not to reap huge profits.
It's a good thing, too. The
Detroit-area investment club
bought its first stocks in October 1987
in Laser Industries and Teva Phar-
maceuticals — Israeli companies trad-
ed in the United States. It turned out
to be an inauspicious time to buy.
"On the whole, we're in the hole,"
said Eli Scherr, president of the club.
Scherr added, however, that the club
has fared no worse than other U.S. in-
vestment clubs after the Oct. 19
crash.
The market value of the Michigan
Israel Investment Club's portfolio was
down 14 percent one year after those
first purchases.
Tom O'Hara of the National
Association of Investment Clubs said
the holdings of its member clubs are
down an average of about 10 percent
from 1987.
Although the 15 members of the
Michigan Israel club would certainly
like to make some money on their
$300 yearly dues, Scherr said their
main aims are to invest time as well
as money in learning about Israeli
companies. Scherr described it as a
seminar.
"It's pretty much a social, educa-
tional thing," he said.
One member is responsible for
following developments in each com-
pany in the club portfolio, and a three-
person investment committee resear-
ches potential purchases.
The club formed after a seminar
in March 1987 where businessmen
discussed Israeli investment oppor-
tunities. It was sponsored by the
American/Israel Chamber of Com-
merce and a dozen other Jewish
organizations. Scherr and Rick
Rosenhaus, officers of the Uniland
Corporation in Farmington Hills, at-
tended the meeting which featured
speaker Walter Lilie, a broker in New
Eli Scherr and Rick Rosenhaus of the Michigan Israel Investment Club.
York City who is president of the Nor-
theast Council of Israel Investment
Clubs.
Scherr saw such a club as a mean-
ingful way to give money to Israel. He
and Rosenhaus then found fellow pro-
spective investors. Next came the dif-
ficult job of reaching a consensus
about the club's goals, dues, and
strategies.
"The hardest part was getting to
investment one," Rosenhaus said.
Scherr, a lawyer, drew up the partner-
ship agreement, whereby all
members are partners in the club.
Their dues are their investment
capital, and members meet every
other month at Uniland offices.
Marc Zupmore, a management
engineer at Grace Hospital, is a
charter member of the club. He got in-
volved because he was interested in
Glenn Triest
buying Israeli stocks, and he was com-
pleting work on a master's degree in
business administration and thought
the club would be a good chance to
learn some concrete business lessons.
He became the club's treasurer.
The club now owns 1,300 shares
of stock in five Israeli companies:
Ampal-American Israel Corp., Laser
Industries, Optrotech, Scitex and Rya
Pharmaceuticals. Two are traded on
the American Stock Exchange and
three are traded over the counter on
NASDAG.
Laser Industries has been by far
their worst performer. A year ago, the
club bought 200 shares at an average
of $9.50 a share. At the end of October,
the stock was selling for $3.50 a
share. Other stocks, fortunately, have
increased in value for the club. Their
newest investment, Optrotech, was