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September 20, 1991 - Image 58

Resource type:
Text
Publication:
The Detroit Jewish News, 1991-09-20

Disclaimer: Computer generated plain text may have errors. Read more about this.

BUSINESS

We Have an Excellent Selection
of '92 Cadillacs!

Market

Continued from preceding page

Come in and Preview

$29500 Rebate on

$2,000
$19500

Rebate on

Rebate on

BROUGHAM
FLEETWOOD and SEDAN DEVILLE
ELDORADO and SEVILLE

SEDAN DEVILLE

$25,595

BROUGHAM
5Stk.
$25 9

List
Price
$33,899
833,899

#548

Loaded, Loaded! Loaded!
5.7 liter, Wire wheel discs, gold package

S*
tk #4„

FLEETWOOD

$29. 795

S*
tk #1536

'Prices include rebates, plus tax and plates. MSRP of Sedan Deville is $32.426. MSRP of Brougham
is $33.899. MSRP of FLEETWOOD IS $36.660 .

suburban Olds-

1810 Maplelawn in the Troy Motor Mall

643-0070

MAPLE RD (15 Mile)

PHOTO © GLEN CALVIN MOON

INNOVATIVE DESIGN
CUSTOM CABINETS FOR
HOME OR OFFICE
MANUFACTURED ON OUR PREMISES

From concept to reality, our custom designs,
expert craftsmanship and quality installation suit
your specific needs. Our custom cabinets and
furniture will enhance your surroundings.

(313) 624.7300

3160 Haggerty Rd. • West Bloomfield • 48323

58

FRIDAY, SEPTEMBER 20, 1991

makes investment recom-
mendations to the club's 20
members.
"I think we have people
who are investing a small
amount of money and learn-
ing about opportunities in
Israel through club involve-
ment," says MIIC member
Rick Rosenhaus. "But I know
that at lease one-third of the
members have substantial in-
dependent investments in
these and other companies.
"Scitex is probably our
most dramatic success," Mr.
Rosenhaus adds. "But some
of the pharmaceuticals like
Teva, Inc., have been good."
Mr. Lutzky recommends
Scitex which is on Shearson's
list of "Ten Uncommon
Values in Common Stocks"
for 1991-1992. The list sug-
gests a target price of $45 per
share for Scitex with a
downside risk of $24. He is
also bullish on Elbit Com-
puters and ECI Telecom.
In May, Elbit computers (in
conjunction with parent com-
pany Elron) raised $37
million in a two million share
offering. Following the share
issue, the parent company's
holding in Elbit fell to 45.1
percent, from a previous 54.5
percent.
Net proceeds for Elbit are
earmarked to finance new ac-
quisitions and to expand its
research and development.
Elbit's 'current price per
share is $25.
Three years ago, ECI
Telecom, a manufacturer of
diversified telecommunica-
tions was traded for 11. rIbday
(after a 2 for 1 stock split) it
sells for $45 per share. The
firm hopes to raise capital
abroad with a planned $30
million dollar offering.
Intelligent Information
Systems (ISS) is another
Israeli company considered a
productive stock on Wall
Street. The Haifa firm
manufactures peripheral and
communication products for
IBM systems. Market wat-
chers are encouraged by ISS's
purchase of the commercial
and international divisions of
Lee Data Corporation. After
purchasing the American
firm at a favorable price, ISS
has benefited from Lee Data's
extensive marketing and
sales network and its list of
Fortune-500 customers. ISS
stock is trading at $20 per
share.
Despite a lengthening
record of accomplishment and
projected growth potential, the
Israeli securities market re-
mains relatively unexplored
in the United States.
Wall Street experts say
securities are unexplored
because many Israeli com-
panies traded are "orphans"

without investment banking
homes to promote them.
While a number of large in-
vestment banks are consider-
ing opening single country
funds for Israel, many fear
that such a move might
alienate Arab interests. In-
vestment bankers are also
hesitant to become involved
with some Israeli companies
that, despite a rebound, had
fallen out of favor due to poor
performance.
A number of smaller firms
promote Israeli stocks in-
cluding Axion-ICF Capital,
Inc. and StarTrade Fund Inc.
StarTrade is a New York bas-
ed open-ended mutual fund
that invests only in U.S. or
Israeli companies that have a
critical mass of operations in
Israel. Launched one year ago,
the StarTrade fund has raised
almost $2 million. Its equity
portfolio is up 19 percent from
its inception and 16.5 percent
in 1991.
"We can be looked at as a
blue chip stock fund," says
Robert Miller, StarTrade's vice
president of marketing. "The
investor can feel comfortable

N

The investment
club relies on an
executive research
committee which
analyzes various
Israeli offerings
and makes
investment
recommendations.

in the fact that they are doing
something that benefits
Israel. And, without a doubt,
they are not investing in any
of the U.S. corporations that
are avoiding a trade relation-
ship with Israel or abiding by
the Arab League boycott."
Mr. Miller says he hopes
that StarTrade will have $20
million in assets by the end of
the year. The fund is manag-
ed by Baer Stearns Asset
Management Group.
StarTrade has 240 investors
but Mr. Miller expects the
figure to rise in the coming
year. "One of the problems we
have had in attracting in-
vestors since our inception is
the fact that we didn't have a
track record. Now, we have
one. It's not an extensive track
record, but in our first year
we've had outstanding perfor-
mance for a fund that's
relatively small like ours."
Economic and demographic
indicators suggest a
strengthening of the Israeli
economy, leaving room for an
increase in the market for
Israeli securities. In addition,
the Bank of Israel estimates
that Gross National Product
will rise between 7 percent

N

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