Tag Archives: tase

Seem that Tshuva is Going for a Haircut

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It seems that Tshuva is going for a haircut or at leas postponement of debt payment, as has been published in the Israeli financial media. My previous point of view has been proven wrong and I am really sad for this, because the guy put in a lot of his money into the business and also sold and sold properties to try to return the debt. Oh well. I hope we both learned from the experience.

P.D: my position on all Delek Nadlan securities was sold about two months ago because the future became uglier.
P.D.2: this is my private opinion and not any kind of advice to anyone.

My Latest Analysis

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I just finished the complete  analysis of one nice israeli company, Chilan Tech (חילן טק) and finished the initial analysis of the israeli communication company bezeq (בזק).

These are the results for Chilan Tech: Chilan Tech – חילן טק. The company does outsourcing of some HR services like pay-slip creation, work-time management and such,  IT services outsourcing and company information services. At least 25% of the pay-slips in Israel are produced by the company. The company has a P/E a bit lower than 8 (for 2009 and for last 4 quarters ending first quarter 2010), average dividend yield in the last 5 years of 4.37% and a strong cash flow (although could be better). This is the first company that I analyzed completely, reading the full 2009 report (took some time). The company can grow a lot in the IT services field if it does things right, and it also integrates nicely with the HR outsourcing services. A stock for long term investment based on the dividends and with possible upside on the price of the stock. With the current market outlook (which is fairly unknown), this is a nice thing to have.

Second Company: Bezeq – בזק. Note that this is only the initial analysis since this company is pretty large in israeli standards (23 billion ₪ market cap, 3.5 billion ₪ earnings in 2009), and the latest annual report is some 400+ pages long so the full analysis may take me some time. Bezeq is Israel’s largest phone company, having both land-lines and cellular sub-companies. The company also owns a large stake in Israel’s Sat-TV YES. Looking at the numbers you see a P/E of 6.5, dividend yield of 5.62% last five years and good cash flow. Once again, a stable company, the stock will not go to the roof but a I like solid investments.

Disclaimer: Own stock on the said companies.

Disclaimer 2: Many of the terminology (both in the excels and in the post) are translated from hebrew to english by me without any dictionary, so they may be a bit off from the exact definition. If you find an example of this please leave me a comment and I will fix it for the future.

Disclaimer 3: I have no formal education in finance or economics. I analyze companies in my spare time for investment purposes and also to learn.

Disclaimer 4: please check my post about How I calculate P/E and dividend returns.