Tuesday, October 31, 2006

The Spuntech Warrant 1 Speculation


The Day Trader persona on my favourite forum mentioned that Spuntech Optzia 1 was about to lifrotz - break out. My first vacillating step in the volatile TASE optzia universe was a purchase of 2000 shekel of TAO Warrant 6 last week, on his advise, and it is a wild success - it went up 60% (sixty percent !! ) in three trading day (including 25% rise today, I never saw such a thing, I dont know why it is rising, TAO is a boring company that buys and rents buildings), making me some 250 dollars on paper. I tried to buy Spuntech all yesterday but my broker Arik didnt bother to answer the phone, and I had much work to do and no time to go to the bank so I lost the trading day and bought nothing. I dont use the internet for TASE. Yesterday Spuntech Warrant 1 finished some 10% up. Today at about 11 AM I got him on the phone and bought 2500 shekel Spuntech Warrant 1 at 107 agorot per share (It ended at 108, already covering the trading expenses). Now it is night and I can look up what this thing is about.

It appears that N.R Spuntech Industries is a developer, manufacturer and supplier of spunlace (hydroentangled) fabric products, like the wet papers they give you on airplanes to refresh your face. It seems to me I remember that Kibbutz Shamir wanted to add value to its losing cotton branch. Founded in 1996, and later bought by Nissan Medical Industries, Spuntech is traded on the Tel Aviv Stock Exchange and has become one of the world leaders in hydroentangled fabric.
The company's three production facilities – two in the Galilee, in Israel, and a brand-new 20,000 square meter site in Roxboro, North Carolina, USA, have the annual capacity to manufacture over 27,000 tons of rolled spunlace goods.
Still I have no idea why the stock is rising.

Another SCADA sold to AmLat Water Co.


Once I almost travelled to Venezuela to design a control system for Caracas's water supply system (with HAGAM) but I refused as the salary was unsatisfactory. Anyway, I did work on the thing from home. The idea was to implement a SCADA system like the one used by Mekorot Water Company in Israel, with a central control room. The software was to be based on SCADA and programmed by Formula. Now another similar thing has been installed by AFSK Industries Ltd. (TASE: AFSK) subsidiary Compax International (93) Ltd. - a computerized wireless central water distribution network and sewage management system in Bogota, Colombia. The Yokne’am-based company said the NIS 13 million system will save millions of liters of water a year, and halve operating costs.
Compax’s system will enable the Bogota Water and Sewage Authority (EAAB) to control its entire water distribution system, reservoirs, treatment facilities, and sewage system from a central control room using an advanced wireless communications control system.
The system will serve Bogota’s 8 million residents in a 2,000-sq.km. area. The system will send alerts about leaks, burst pipes, over-consumption of water compared with the average per day, hour and date. The system can also warn about suspected theft of water from municipal pipes.
The system was designed, built and installed by the AFSK-Electrohidraulica Temporary Union, uses Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) communications technology, and was partly financed by the Japan Bank for International Cooperation and the Japanese government.

Monday, October 30, 2006

The Eggplant Salad Factory Job




On Friday I received a job to design and arrange the water, wastewater and environmental permits of an eggplant salad factory in a nearby town. It is quite a job, because the building is very old and poorly maintained, and it seriously violates environmental codes. It has a COD of 5000 mg/lt (allowed is 2000) and high cloride containt. The water is supplied by two separate connections and wastewater is treated by two separate grease traps, which are in shortcircuit and the hot detergent rich water passes through it in seconds, without giving chance to the oil to coalesce and separate. It was designed by one Dr Toker, but probably in an ancient time, in different conditions, to a laxer enviromental standard, when the EcoKGB was yet unimagined and unthinkable.

The main problem is the salt. The eggplant is left in a salty solution for a time, and the water cannot be evacuated to the municipal sewage because in Israel, all the wastewater is treated and reused as irrigation water. The country's aquifers are in great danger of salination, and Dr Golan thinks that some 50,000 tons of salt are added to it each year. Therefore the EcoCheka is really after salt polluters. I proposed to make a separate line for salt so that a contractor would take it to the sea, but a new directive forbids sending food and fish factories brackish waters to the sea. There is no solution - in fact, we are in an impasse and those like this factory that needs the permit is in a very bad situation. I mean, the authorities do not bother those establishments that have their papers and permits in order, only demand the new directives from those unfortunate that submit them petitions. As for now, the only thing I see is evaporation and disposal of dry oily salt in the solid waste system. Another alternative is microfiltration, or RO (Reverse Osmosis) but they are unthinkable, they are so expensive. I presume the eggplant salad business is not profitable enough to carry such expenses, so the ultimate option is to close the factory and import eggplant salad from another Mediterranean or Balkan country, like Greece or Bulgaria. The owner is a Sephardic Jew, with the aristocratic family name of Montesquieu. He speaks ladino, the Spanish spoken in the 15th Century that was conserved by the Sepharadi expulsees.

I shall welcome any technical solution proposed by readers. Please dont tell me to give up my private consulting and return to the boring civil service, I thought that first.

Tower dilutes, dilutes, dilutes

Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) Investors reportedly asked the company to hold the placement in order to buy shares. The placement is being held at $1.80 per share, similar to the market price. Tower is also offering options exercisable at $2 per share, after a six-month vesting period. Tower has a market cap of $153 million.

I see the Pibko Tower in the pic each time I go to Tel Aviv on the Ayalon Highway. Pibko is an Israeli architect, he wanted to make a mark on the city. Apartments in the Tower are expensive.

Saturday, October 28, 2006

Carmel Winery: I'll Never See My Money




Two years ago Moshe Bohm, an old Hungarian Jew who is in charge of Safety of Carmel Mizrahi Winery, introduced me to the cooperative and I helped them to achieve the Hazardous Materials (Homas) Licence, in Rishon Le Tzion and in the Zichron Yaakov plants. I got to know the people quite well and did a great job (thanks to my being known in the field). The Rishon plant is the first winery in the country established by the Baron Rothschild in 1870 or something, it is falling apart and dangerous, with inaccessible underground ethanol deposits and an electric system of the nineteen thirties, with porcellain swithces in wooden boxes. The plant is now in the very center of downtown Rishon, and an eight floor apartment building is overlooking it. The plant normally stores ammonia and bisulphate, as well as ethanol, so getting the permit was not easy.

Later they called me for the Zichron Yaakov plant development project, and I worked a lot on it, including models of particle dispersion, which was quite difficult because there is no metereologycal station in the place and winds are unpredictable coming from the sea and/or the dessert, flowing into deep wadis and slopes. But they did not pay me so I abandoned the treatment of the project, which was quite ugly. But I am so busy that cannot work for months in end and not seeing an agora shchukah - in Hebrew, a one agora coin with the hole in the middle (the smallest value coin under the Turkish rule in Israel). I sent no less than three letters, with copies of the contract and working orders and so on and never got a cent.

I met the managers David Ziv(left), who was fired May 2005, and the new Manager Moshe Meron (right), fired yesterday. I always wondered how this ancient cooperative was surviving, how it could compete with the new boutique wineries sprouting up everywhere. I had visited some new wineries in the Golan, in South Mount Hebron, and others. They were shiningly new, produced special wines, and their young Anglosaxon wine experts had great hopes of prospering. The Israeli public has learned (if ever forgot) to drink wine and nice 10 dollar a bottle Australian, Chilean, Argentinian, South African wines are available in the supermarkets.

What I am coming to is that Carmel Winery has lost 80 million shekel (19 million US$) in the last two years, and they get so tense that Ivtzan sacked the manager, Moshe Meron, after less than a year. He was carrying out a development program designed by an outside consultant Sheldon (?). The Winery is a cooperative of farmers, and it seems that they are fed up because they were not getting paid for their produce.

The conclusion for me is that I will never see my money and that most probably the winery will be sold. Its main value is in the real estate it holds, in Rishon's center and in Zichron Yaakov. The consultant's idea was to develope the tourist - entertainment portion of the business, with restaurants and wine tasting. The main problem is the impossible structure of the business, a hundred years old cooperative, with the land property complicated even more than it is usual in this small and dense country.

A month ago, the lab manager, Haim Wechstenstum (?) called me to continue working for them, also the old man Moshe Bohm phoned me that it was he who proposed my name, and I did sumbit a written proposal, but it was not answered. I presume that now, under the uncertain circumstances of a management change, the second in two years, they will not hire me. Or yes, but once again, the probabilities of being paid are highly uncertain. What a pity, they have a nice business and liked working for them, but someone has to inject 30 - 40 million dollars in it.


The illustration is of Pinot Noir wine of Efrat Wineries, one of the new brands that are killing Carmel Mizrahi. Tens of religious new settlements in Yosh (Yehuda and Shomron) have planted grapes and built shining small wineries. They intend to produce kosher high quality wines, mostly for export. And they are succeeding, some of them have interesting wines. I like their Pinot and Merlot. The Volcani Institute has developed the sagol variety, I liked it but disappeared from the market. I like dry, fruity, aromatic, heavy wines. (The wine I most love is the Chinche wine from La Rioja, Argentina. I used to buy it in Buenos Aires in damajuanas of five liters, because it was not sold in bottle. It is mostly a home made wine in the Rio de la Plata coastal areas, it was made with Vitis americana which gives a foxy, smelly, aromatic black wine with a great body, very different from the Vitis vinicola europea. It is unknown and unavailable in Israel).

Friday, October 27, 2006

A Few Things about the Lowy and Abeles Side

My Mother side comes from Vac a few km from Budapest. My Grandfather Lowy David (Dubchy) was born in Losonc, Slovakia (see pic). My Mother could never explain me where that was, so I looked up it in Wikipedia:
Lučenec [lu-che-nyets] (Hungarian: Losonc, German: Lizenz) is a town in the Banská Bystrica region of south-central Slovakia. Historically, it was part, and in the 18th century the capital, of the Nógrád county of the Kingdom of Hungary. In 1918, as a result of the Treaty of Trianon, it became a part of Czechoslovakia. The town has a large abandoned Jewish synagogue, built in 1924, which served to a large pre-WWII Jewish population.
I dont know why, since this is a Hungarian town, but My Grandfather David (Ignac in Hungarian) had problems when all Hungarian Jews had to document their Hungarian roots as from 1850 (I dont remember exactly what year), according to my Mother he had to travel to Losonc and bring papers to certify his Hungarianity. This was a major and dangerous operation during those years. He had all his family in the Losonc area, and he lived in Vac because he married his cousin from that town. The Abeles and Lowy families were much intermarried (my grandfather and his wife were double cousins) as their parents were cousins - I dont know exactly, even if I was told several times. The fact is that they were much inbred). The Abeles family name comes from Bohemia, and it can be found in different court and census documents. The Lowy - Germanized form of Levi - is a very common name, maybe 5% of the Jews carry it. Googling the family origin, I came to the following sentence I copy:
The Abeles family came from west Bohemia and settled in Slovakia in the late 19th century. My grandfather and the Abeles family came from the village Hoch Libin in western Bohemia. Today it is known as Vysoká Libine. Vysoká Libine was in Sudetenland, in the Podvodany area</em>.
I looked up where this Hoch Libin was situated, and it is a small village in what used to be for some 700 years the mixed German - Slav (Tchech) ethnic frontier, what is known as Sudetenland. In the last sixty years no Germans are living in the Sudeten, and there are no Jews either. What is interesting, the German names of that cluster of small villages are common Jewish family names: Lasker, Lang, Lichtenstein, Lieb, Lewin, Morgenthau, Bohm, Asch, Kosteletz, Auspitz, etc. I think this was one of the few remote areas where Jews survived the Middle Ages (which left most Europe Judenfrei) and later re-populated Moravia and Northern Hungary. I want to establish that all I know for certain is that my grandfather Dubchek Lowy's hometown was Losonc. The rest is speculation. I could search my genealogy up in the centuries, but I am not interested. It is enough to know that their origin is the German-speaking oberlander Ashkenazi settlement. They spoke good German, and not Yiddisch. Specifics like "Sara married Abraham and had nine children" would not add to my knowledge, and probably it would be wrong. I never met my Grandfather nor any of his generation, and there is nothing left of them on European soil.


Vac (Weitzen in German, see pic to the left), is the town where my Mother (Edith) and her Sisters (Rozsi, Ella, Juci, ..) and Brother (Itzig) (they were six children, five girls and one boy) and their Mother (Ilona) were born (My mother's birthday is August 17 or 19, 1923). Vac was one of the port cities built by the Donauschwaben and in its time had some commercial importance as a transit point toward Slovakia. It was home to a teeming orthodox bunch of Hertzfelds, Abeles, Lowyes, etc., an intermarried inbred clan. My mother and her surviving cousins like Schlomo Herzfeld fron Nir Galim moshav, Abeles Bela from Haifa, Moyshe Abeles z"l from Mea Shearim, Jerusalem, all remembered with nostalgia the ferment of their youth in Vac.
I visited Vac a few years ago and it is a riverside town built from granite, with houses built from big dark blocks of stone, giving a solid and hard impression. It has many very fine churches, and public buildings. I went to see the place where my grandparents lived, I identified it as the Kalmar's Court (Kalmar is Merchant in old Hungarian) on the central street of Vac, and they had a several apartments and shops that they rented out. They also had a big rent house on the Budapest Road, which was nationalized by the Communists and about ten years ago the Hungarian State paid us compensation for it, a ridiculous sum, but the intention was good. Hungary was then a poor country and the act itself is commendable.
We went to the Orthodox synagogue and nearby house of the rabbi. The synagogue was in ruins but not vandalized (sixty years of disuse), which is surprising for me, coming from big cities. The seats were untouched and also the prayerbooks were in their place, most old Hebrew-German prayerbooks printed in Berlin 1890 or New York (yes!). Vac is very clean and ordered, with flowers in the windows. The other buildings of the synagogue complex were in good condition and used a library and music academy. We went to the Orthodox cemetery, it looked well kept from the outside, but inside was overgrown with trees (the natural vegetation of the area took over - it is a deciduous forest formation) and the tombstones, mostly made from sandstone, were disintegrating and falling apart. I could not find really old stones, I would have need a machete to clear the bush, and most I saw were from the 1870 - 1930 period and a few newer ones from the postwar era near the main entrance. Many older tombs were of children, child mortality must have been very high before WWII. There are still a number of old Jews in Vac, but no community. Later I shall post pictures from my visit in Vac.

Thursday, October 26, 2006

The Handmaster - Am I Blind to Opportunity?

Today was a successful day on TASE and I went to Arik, my investment adviser, to ask him what to do. He said TASE was higher than ever and it is expected that during the next week there will be a period of profit taking. So holding cash is the best and wait for an entry point next week. (Bank HaPoalim has published a different advice: They say that TASE's upward momentum should be exploited and all the money should be invested in shares).

Anyway, I am searching for investment opportunities and found this NESS very successful startup. Reading what it is about, I am surprised - in the eighties I had a close contact with this technology, when it was only a miserable office in an old decaying building in Tel Aviv, and did not think it had any future. Am I totally blind to commercial opportunity? Am I so dumb? How can I manage my money affairs if I am so dumb?
The story is like this. In 1981 don Patricio Romero, the governor of Ecuador's Pichincha province, and his second in charge whose name I forgot, were invited by TAHAL to visit Israel. I was assigned to be with them, I received a chauffered car and a lot of spending money, and we went around the usual religious and turistic attractions as well as irrigation and intensive agriculture and agroindustry plants. Romero was a rather short man, very nicely built, with penetrating, sick, hypnotic blue eyes. He was the most charismatic speaker I ever met, he never looked a person in the eye but his eyes froze and became blue green balls of crystal and he spoke with intense emotion and painful honesty. I was much impressed by him and I liked him. Later I visited him and his second in their homes in Quito, very nice upper middle class people. The Vicepresidente had a slim daughter with a long black floating hair. His home had a staircase and the teenager girl was coming down and up half dressed showing herself all along my visit. She disturbed me at the time, I had an erection then and there. There was a cascade and a fishpond in the living room. It is interesting how memory works, what are the things that get stucked forever.

What I am coming to is that being in Israel, Romero mentioned that he had some kind of muscle or back ache problem, and someone from TAHAL recommended a novel electromuscular treatment. Doctor Patricio Romero (he was a lawyer and died a year ago) agreed and I found the Romanian doctor's "clinic" in Tel Aviv. It was a modest office, he made Romero lay down and connected his skin to small crocodile electrodes. The electricity caused small muscle contractions and after playing half an hour he said that that was it. Romero felt nothing, not worse nor better, I saw nothing special. Privately (and probably also to Romero) I voiced my opinion that it was a witch doctor, I don't believe in the treatment, of course small electric stimulation will move the muscles, that was proved by Volta with his battery and dead frog legs two hundred years ago, and so on.

Now there is a startup company - and a very successful one - based exactly on the same technology. Probably it is a development of the same Romanian then new immigrant doctor. Everything written in the Ness company website and prospectus, is what I heard 25 years ago from that doctor. Which made no impression on me. Ouugh!

NESS - Neuromuscular Electrical Stimulation Systems Ltd - (Teuza's holdings 34%) - NESS brings to the market a revolution in rehabilitation technology. It provides technological solutions that respond to the needs of people suffering from paralysis due to neurological disorders such as stroke, spinal cord and/or head injury, and in some other neurological indications including cerebral palsy and multiple sclerosis. Experts expect that the Company's products will become a standard of care in the rehabilitation field within a few years.
The company uses the technology of surface functional electrical stimulation (FES) to develop solutions for activating paralyzed muscles. The NESS systems are designed for home use and provide the potential of enhanced function and therapeutically based improvement. The company's first product, the Handmaster, is a non-invasive system for paralyzed hands. The Handmaster system received the CE mark & approved by the FDA for marketing in the U.S.A. The Handmaster personal system incorporates and integrates advanced upper limb rehabilitation technologies in a single system for patients' independent use. NESS has applied this successful rehabilitation concept in other body sites, to offer a full range of products for a comprehensive treatment of the paralyzed body. Two of the company shareholders are a multi-national company, J&J as well as Dow Chemicals.

NESS has a subsidiary in The Netherlands and is selling its products
very successfully there.
In April 2004 N.E.S.S. signed an agreement with Alfred Mann's group. According to the agreement a joint marketing company was established in The USA (BIONESS Inc.), N.E.S.S. received 35% in BIONESS Inc. and Alfred Mann provided this company a finance of $8M. BIONESS' sales in 2005 reached $2M. Bioness received also all the rights to market in the rehab area the "Bions" developed by Al Mann Foundation

Alfred E. Mann's group develops unique technologies in the medical field like: hearing device for the deaf, seeing devices for blind and also the bionic technology which provides an electric stimulation in the muscle to assist in the recovery of the function of a paralyzed limb. The combination of Ness's products and the Bions of the Alfred E. Mann's Group will make a revolution in the rehabilitation field. NESS also finished two new R&D projects, Leg Device and Large Handmaster, at a total budget of $6.3M. These projects were financed partly by Bioness and the Office of the Chief Scientist of the Ministry of Industry and Trade of Israel. The leg device, NESS L300, received the CE mark & approved by the FDA for marketing in the U.S.A. The NESS L300 is intended to provide ankle dorsiflexion in individuals with drop foot following an upper motor neuron injury or disease. Website: www.nessltd.com

Wednesday, October 25, 2006

Desalination everywhere...


IDE Technologies Ltd. will build two desalination units on the Caspian Sea in Kazakhstan for the production of 12,000 cubic meters of water a day for the Kazakh national power station. The facility will cost $14 million to build. It will supply water to the power station’s boilers and drinking water for the residents of the adjacent city of Aqtou. The desalination units will be built in Israel, and delivered to Kazakhstan by sea and land and begin operating in late 2007. IDE president and CEO Avshalom Felber said winning the Kazakh contract strengthened the company’s position as a supplier of water desalination solutions to Central Asia, which suffers from a shortage of water.

IDE has built 360 desalination facilities around the world. In Israel, the company is a member of the consortium operating the Ashkelon desalination facility, considered the world’s largest. The company and Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN) recently won a tender to build the Hadera desalination facility

Water, water everywhere...

Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE: ELRN) has decided to invest in water purification company Atlantium Ltd. of Beit Shemesh. The product is a laser or ultraviolet irradiation of drinking water, destroying Giardia and other pathogens, which are rather resistant to chlorification. Elron CEO Doron Birger said that the company would invest $10 million in Atlantium for a 32% stake in the company, giving it a company value of $30 million. “This is Elron’s first investment in water and environmental technology,” Birger said, and added that Aurum Ventures MKI Ltd. was the main partner in the investment and management of the company. Aurum, owned by brothers Morris and Benji Kahn, owns 49% of Altantium.

Birger said, “This is our first collaboration. We view this investment as a strategic step by Elron in the sense of entering a new field, through the investment in a mature company. This isn't a start-up, but a company that has begun to sell, and we believe that this is a company with a chance of growing into a large company. We will make other investments in cleantech following this investment.” He added that his partner in leading the investment in Atlantium was Elron VP Yair Cohen.

Atlantium’s main investors to date are the Kahn family and foreign and Israeli private investors, who have invested $15 million in the company to date.

Speculator's Axioms


The First Major Axiom: ON RISK
"Worry is not a sickness but a sign of health.
If you are not worried, you are not risking enough."

The Second Major Axiom: ON GREED
"Always take your profit too soon"

The Third Major Axiom: ON HOPE
'When the ship starts to sink, don't pray. Jump."

The Fourth Major Axiom: ON FORECASTS
"Human behaviour cannot be predicted. Distrust anyone who claims to know
the future, however dimly."

The Fifth Major Axiom: ON PATTERNS
"Chaos is not dangerous until it begins to look orderly."

The Sixth Major Axiom: ON MOBILITY
"Avoid putting down roots. They impede motion."

The Seventh Major Axiom: ON INTUITION
"A hunch can be trusted if it can be explained."

The Eighth Major Axiom: ON RELIGION AND THE OCCULT
"It is unlikely that God's plan for the universe includes making you rich."

The Ninth Major Axiom: ON OPTIMISM AND PESSIMISM
"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic."

The Tenth Major Axiom: ON CONSENSUS
"Disregard the majority opinion. It is probably wrong."

The Eleventh Major Axiom: ON STUBBORNNESS
"If it doesn't pay off the first time, forget it."

The Twelfth Major Axiom: ON PLANNING
"Long-range plans engender the dangerous belief that the future is under control. It is important never to take your own long-range plans, or other people's, seriously."

Tuesday, October 24, 2006

The Hungarian Revolution of 1956: My Version



I was there. We lived in the very center of Budapest, Almasy Ter 8 harmadik emelet, and I went to the regime's elite Gorkiy school in the Ligeti Sor. On October 23 1956 I was coming home when a large mass of people was going on the avenue with the idea of throwing down the enormous bronze monument of Stalin. People was enthusiastic, they told that the Poets and Writers Union had some meeting and the Radio had been taken. I got carried away by the general enthusiasm and wanted to join the mass, but my father or mother did not allow me. I was 9 years old and excited by the action. The first question in their minds was antisemitism, if it was a fascist uprising and if they were attacking Jews. We always lived in fear. Only a decade ago, Auschwitz had been fully operational. Almost yesterday. Memories were very fresh.

Next day there was no school and we walked on the main street and saw the head of the statue laying on the paviment, separate from the body. People were writing things on the body, other trying to cut a piece of the metal to take it as a souvenir. They had hammers and other tools in hand. Big hammers that I have never seen. I was surprised that the statue was hollow. I also came near and touched the big statue but my Mother didnt allow me to take anything. Later that day or the next, we saw unmoving tanks on the street and a burning tank with dead tankists in it and laying on the street. Young men looted the tank and I stole a leather headgear which I took with me. It had built in audiphones which I intended to use to build a cristal radio. It was made of black bakelite, like the phones of that era. Someone told me that it was from a Russian tank, I dont know. I was happy. My parents were very worried.





We were much afraid, because arms were given out to unknown civilians and we were afraid that fascists would get arms and start killing Jews. A national guard, armed, was being formed. Only ten years ago, during the Russian ostrom (encirclement) of Budapest, fascist bands roamed the streets to kill Jews, among them they shot my uncle Joshka in the Danube, the big brother of my father. We saw people hanged on the trees in the street, with white paper signs and blood, but my parents didnt allow me to get near and see it. They were suspected AVO people (secret police). People was hysteric, they went on the street and suddenly someone would shout out hysterically that he recognizes someone as an AVO policeman and a lynch mass would immediately form around them and the suspect would be beaten and killed and hanged then and there. People was afraid to go out and be lynched. AVO was peopled by Jews, everybody knew that. Jews and Communist Party and the AVO were all the same and hated. My father's best friend, Miky Lengyel, didnt go out to the street for weeks. We had nothing to do with anything, but fear was in the air.

Somebody came to my father and told him that they were sacking the Party headquarters and each one could get and see his own secret file (the kader). My father went and got his file, and I overheard him telling that people who he had thought of as friends had informed about him. Jewish colleagues had informed on him. He was amazed and thoughtful, more than anything.

Then some tractors and excavators were digging a big hole in a plaza. I went near and people told me that voices were heard from under the earth, there was a secret underground prison of the AVO and people was imprisoned and could not get out and they were shouting for help. Tractors and excavators were working night and day, with reflectors that were new for me, and individual people helped to dig. Sometimes the work would be stopped to hear the voices clamouring from the deep, I too put my ear down and heard nothing coming from the earth, and nothing was found. It was a psychological thing, hystery, hallucination. It rained and it became frozen mud and the hole was abandoned when I saw it again in a few days.

Lipschitz, our "tenant", came and said to my father that he found a leather factory where leather could be taken away but he didnt know what was valuable and what was valueless. My father grew up in the leather business so his expertise was required. Lipschitz was a Slovakian Jew, about 50 y.o. then, whose family had been killed and had not one relative left. The communists had put him in our department's servant room. My parents were against him, mostly because he was a gross peasant type of person and doing hard physical work, unbecoming to Jews, but in the end he was a warm country Jew and much worse people could be put to live with us. He worked as a hordar transporting heavy things in his tricicle. His trycilce, which he protected, was made from heavy black iron tubes, an industrial machine, unlike my own bycicle. He used to play cards in the nearby Feszek klub, arrived late night and drunk and brought girls (whores) to his room. My parents didnt want him, because he was a bad example to me. They forbid Lipschitz to bring drink and women into the house. Lipschitz protested and there were fights. But Lipschitz loved me, even if my parents did not allow him near me and I was dead afraid of him. Jewish boys were scarce in postwar Hungary. During the revolution he came home with a tricolor armband and a rifle. My parents were out of themselves with fear, they didnt want him to have a firearm in his room. There was a statarium meaning that anybody cought with firearms was ipso facto executed on the spot. Lipschitz was not afraid. On the other hand, it was some kind of protection to have him with us. My uncle Gyuri and my Father went one night with him and came back with a packet of good leather. This leather was used later to pay the Zalaegerszeg peasant who guided us through the frontier to Austria.

Then Gero was deposed. We went to my uncle Gyuri's home, it was near the parliament. According to him, they saw from the window how a great mass of people was shot at when they wanted to demonstrate in front of the parliament. We heard shots and people started running, we also ran. My memories of the place are confused, I dont know if I was really running or I imagined it.

The Army leady was Pal Maleter. My parents speculated if he was fascist or not. When the Russian tanks came in to Budapest center and was shooting, we went down to the building's antiair refuge, where each apartment had a coal deposit. I had been down maybe once, with my father, who went to fetch coal for the nice yellow keramic heater we had. Underground tunnels connected several houses. Freedom fighters came in and moved on. We were afraid they would attract attention. The tanks were shooting at windows with people. We lived several days down. I remember there was an excitement when soldiers came to search for fighters, but my parents hid me and could not see anything. Then they decided that it was less dangerous in our apartment in the third floor and moved back. In front of our window there was a round parking area or something, I remember a tank came and turned but did not shoot. The tank damaged the grey stone paviment.

Lederer Robi was in the diplomatic service. He and his old mother lived in the third floor as we did but they had a very small one room apartment at the end of the corridor. It was some kind of deposit or service staircase that had been made into a mini-apartement. I didnt know that people lived there. Robi had been in Vienna, he was invited to our apartment to tell and he brought me an orange. We touched with marvel the unknown fruit. He told me that he had also eaten a banana in Vienna. I had never seen an orange and didnt know what was a banana. He said that the frontier was unguarded and open, there were no Russian nor Hungarian patrols and thousands were leaving Hungary.

Then my parents and uncles decided to leave Hungary and started to think how. I think my Father travelled to Zalaegerszeg, a town with frontier with Austria, where he had been working within the framework of his water planning institute and had an alibi if he was caught. He returned saying that everything was arranged, a peasant will take us past the frontier. We travelled by train to Zalaegerszeg with my uncle Gyuri and his wife my Mother's younger sister Ella. By late December the Russians were again in Hungary and patrolling the frontier and people got shot trying to escape. Escaping became something complicated and dangerous. We travelled by train to Zalaegerszeg and slept in the house of the peasant, my Mother was afraid and wanted to return to Budapest, but early in the morning the peasant put us in his horse drawn carriage and covered us with tarpauline, and we descended near the frontier when no one was around. It was very cold and there was a cold wind and everything covered with 30 cm - 50 cm high snow. We walked all day stopping in the roadsides, in the snow, till we arrived tired to the other side. We crossed the frontier on 31 December 1956 and arrived to Kaisersteinbruck in the early morning, where there was a station for new arrivals and we received hot chocolate, which I never had before in post-War Hungary. The chocolate tasted strange, the milk was greasy, but they forced me to drink it. Well, that is for another post.

A last thing. My aunt Ella was pregnant then but it was considered that it was better to abort and start the new life free of a baby. My mother took her to Leo, a doctor who made illegal abortions in his house. My poor aunt was very weak walking all night through the snowy frontier, and she never could have another baby. She died in Sidney in the eighties delirating about her nine children. Judith Lieberman told me. I always hated my uncle Gyuri for killing her baby. A real tragedy, very typical of the way of thinking of Mittel European Jews of the postwar era. I decided then that no material considerations (poverty, danger, etc.) would ever impede me to have children, that there was never a bad time for having children.

Here is an article that caused all these memories of fifty years ago. Oh, God, fifty years have passed. I am old.Today marks the 50th anniversary of the October 23, 1956 Hungarian uprising, which foretold the international collapse of Communisim. Many heads of state have been invited to participate in the Hungarian celebration. However, while Hungary is trying to create an outward impression of unity, the collective memory is divided regarding the uprising.

Alongside the official events, opposition groups will also be holding mass ceremonies, each in its own plaza. All this comes in the shadow of the political ferment and the demonstrations calling for the resignation of the Socialist government.

Hungary today does not have only one version of the 1956 events, nor does it have a unified collective memory, says Dr. Raphael Vago, of the Tel Aviv University history department. Vago is an expert on Eastern Europe. The country's memory has undergone privatization, and each group maintains its own version, he says.

"The Socialists, who are sort of the heirs of the Communist party, are trying to adopt the concept of a revolution against totalitarian communism in favor of socialism with a human face. On the right they are adopting a blunter anti-communist, nationalist and patriotic line, accompanied by Christian symbols.

"The extreme right holds a rally of its own every year, and presents not only the struggle against communism but also Hungarian frustration during the 20th century and its division in the wake of the World War I defeat. They blame the Jews for bringing communism into Hungary by force as early as 1919, with the revolution of the Jewish Bela Kun (Cohen). On the nationalist and anti-Semitic right, the anti-communist struggle is also a struggle against the Jews."

Anti-Semitism rears its head

The Jews also have their own memory of the events of 1956 - even if is does not have political expression or legitimization in the Hungarian public discourse. As an assimilated and influential minority, Jews were active on both sides of the divide during the uprising. In addition, they were prominent among both the oppressive Stalinist leadership and within the rebels' core. However, during the revolt, average Jews underwent an experience different from that of other Hungarians - one that was far less heroic. Alongside the dozens of political parties, the hundreds of newspapers and publications and the many radio stations that cropped up during the revolt, groups on the radical right also appeared in the public arena. These included war criminals who until then had been in communist prisons. Nationalist and anti-Semitic messages started entering the discourse.

This was only 11 years after the end of World War II, during which more than half a million Hungarian Jews were killed. The fascist Hungarian government then in power looted their property, enclosed them in ghettoes and deported them to concentration camps.

After the war, the Jews who remained in the country were in profound denial about their past and identity, and they repressed the betrayal by the Hungarians. They saw in communism a way of reintegrating into society, and the regime suppressed any attempts to create a collective Jewish memory. The identification of the 1950s dictatorial regime with Jews also influenced the Jewish experience during the time of the revolt. In Stalin's day, the top communist leadership in Hungary consisted mostly of Jews, as did the top echelon of the AVO, the cruel and hated secret police. The Jews feared acts of revenge. During the 13 days of the revolt, until the Soviet invasion, the Jews lived in tension and feared the unknown, says researcher Zvi Erez.

"They knew that in every riot and every political reversal, sooner or later anti-Semitic voices would be heard. Anti-Semitic feelings have very deep roots in everyday Hungarian life," says Erez.

The fear of revenge-seekers was less significant, asserts Erez, since as early as 1953, a short while after Stalin's death, the Soviets deposed a number of Jewish ministers who had stood beside party secretary Matyas Rakosi, and the Jews were pushed out of the top ranks. Rakosi, himself a Jew, was deposed from power, to be replaced by the reformer Imre Nagy - the only non-Jew in the senior leadership - who eventually became the hero of the revolution.

Many Jews took advantage of the uprising and the central regime's tenuous hold to flee to the West. About 200,000 Hungarians fled the country at that time, including a disproportionate 15,000 Jews - who comprised less than 1 percent of the population. About 12,000 refugees came to Israel.

Yaakov Golan, a researcher and commentator at Israel Radio, experienced the revolt as a Hungarian and even participated in the historic demonstration in front of the parliament building on October 23. Golan, then called Perer Gero, was about 19, and alongside his work as a welder he served as a sports reporter for two newspapers in Budapest. The press had already dared to publish implied criticism of the regime, he recalls, and was reporting on the mass forums of the Petofi circles, a group of opposition writers and journalists, many of whom were Jewish. The snowball had started rolling.

"I was assimilated, an enthusiastic youngster, and I identified emotionally with the revolution of 1848, the Hungarians' war of independence from the Austrians [during which Hungarians and Jews fought side by side; in 1867 the Jews won emancipation - R.G.]. I felt the struggle for freedom and liberty would heal my childhood wounds from the Budapest Ghetto during the war."

On October 23, demonstrators gathered around the statue of General Bem - a man with Polish roots who fought alongside the Hungarians in 1948 - in solidarity with Polish workers who had been shot by the Polish police several weeks earlier.

"Later we were joined by students exiting the Technical University," relates Golan, "and they had already formulated 13 points that included, among other things, a demand for a Soviet withdrawal, freedom of political organization and the elimination of the secret police. The students had worked hard behind the scenes before they came out to demonstrate."

The next stop was Parliament Square. Golan remembers masses of people trying to break into the square by force, and the great fear that the secret police would open fire at any moment. "When the square was full, they turned out the lights. We felt this was the end, that the fusillade was coming. People lifted their arms like the Statue of Liberty and burned newspapers. This made an impression on the AVO police, and they turned on the lights. They understood this was something strong."

After the initial enthusiasm, he became very afraid and decided to leave the scene; that summer he had been arrested for participating in an illegal demonstration. He got on the metro to go home. "I shook as the metro passed the secret police buildings on Andrassy Street, and then I saw a man in uniform standing next to me - and I still had the free-Hungary symbol on my lapel and the 13 points. I was shivering with fear. I got off at the first stop and walked home."

The next day he went back to work. He remembers the sense of euphoria. Newspapers changed their names and editorial desk heads were dismissed. Workers' committees began to organize outside the aegis of the Communist Party, as did formerly illegal political parties. People ran to open the secret police files. "Of the country's 10 million inhabitants, 1.8 million were under surveillance. It was a huge apparatus," Golan says.

He remembers an atmosphere of hope, exhilaration and unity, with no manifestations of anti-Semitism. After the invasion of November 4, he escaped with some friends to Italy. In fact, he encountered anti-Semitism among the refugees escaping with him. He later came to Israel.

He recalls that most of his classmates, including the Jews, identified with the revolt. "We felt Hungarian then. At that time, a few of my friends were looking toward Zion, people who were not involved in the revolt and were waiting until things calmed down to move to Israel."

The recollections of Andor Kalmar, a retired mechanical engineer who came to Israel in October 1957, a year after the revolt, are different from those of Golan. He found it hard to identify with the revolt, which thrust him back into the horrors of the past. Kalmar was 29 at the time, an officer in the Hungarian army and the married father of a young daughter. Throughout the revolt, he continued going to work at the Technical Institute in Budapest, and he heard about the events via radio.

"There was tension in the air, a lot of arguments, and we hardly managed to work," he recalls. "A short time after the revolt broke out, demonstrators started calling for the hanging of the AVO members - when a Hungarian in the street said AVO, he meant Jews. We heard that they were hanging secret police officers from electric wires in the streets, out of revenge."

Kalmar, who had survived the concentration camp at Birkenau and was liberated from Sachshausen in Germany, says the uprising reminded him that he would be better off not remaining in Hungary, and that he was a Jew and not a Hungarian.

"I was never a Communist or a member of the party, but when I heard talk against the Jews, I was not in favor of the revolt. Based on my bitter experience in 1944, I knew that if they were to start talking and inciting against Jews, it wouldn't stop there. We heard there was graffiti in the streets, 'Jacob, this time we won't take you as far as Auschwitz' - that is, they'll hang you on the spot. Suddenly, all the Jews became communists, and again they were blamed for everything."

Kalmar was afraid to flee because he knew that as an officer, if he were caught he would be severely punished.

When the regime stabilized somewhat, the officers in the Hungarian army were asked to sign a document expressing their support for the Soviet army, which had suppressed the counterrevolution. Kalmar said he had no problem with that, but asked to be released from the army. In January 1957 he and his family stole across the border to Austria. His wife was pregnant. They managed to cross safely, even though they were discovered during the crossing and Hungarian soldiers fired at them. On the other side of the border, the Red Cross was waiting.

Monday, October 23, 2006

Walking the Treacherous Waters of Options and Warrants

A few days ago I bought Tau Warrant 6 and the world did not collapse. In fact, it is maintaining it value. So today I bought Tower Option 4 which has a multiplier - manof in Hebrew - of 1.94. It is one of those options emmitted by Tower in last July. I hope the share will rise fast after the third quarter report, and the publicity is starting to receive in the US.

The illustration is how our Hungarian compatriots saw us in 1900.

Working in Lod's Shuk




I spent the morning visiting potential clients with Eddie. In Lod we went to a mefarek ofot, a chicken butchering business which suffers from serious sanitary problems and is about to be closed by the Ministry of Health. There is a great lake of sewage in front of the place, which the municipality cannot repair, because it is not current maintenance (they neither do current maintainance) but is an investment in infrastructure (takziv tabar - extraordinary budget) and they have no investment budget (in fact, Lod Municipality hardly pays its employees). The owner said that I should make a plan and bring a kablan - contractor - and each of the ten owners around the place (it cannot be called a park or plaza) would be willing to put in 1000 shekel each to repair the sewage. It is near the shuk of Lod, an Oriental dirty open market, full of colorful/colored Israelis. I think all that is needed is to replace or repair a sunken manhole and replace some 20 m 6 inch pipe. It is strange that many of my clients want me to build my projects, they want full complete service, they dont want me to plan for them but to do the actual work.

The chicken butchery thing has two separate connections to the municipal line, when I went to investigate I found a 40 - 50 cm shallow manhole with a big black plastic bag just recently inserted that was causing a flooding (see pics above). Someone has recently sabotaged the line, with the idea of causing trouble to the chickenman (he probably thought I was a health inspector). Lod is a mixed population town, Palestinian Arabs (many hamoolot - clans - descendants of former mashtapim - collaborators - and Jews of many extractions, many recently arrived Ethiopians and some old Russians, and the level of social coherence and cooperation is very low while drugs and criminality are rampant. Life in these mixed towns is unpleasant. After smelling the putrid stink of the chicken butchery and its front sewage lake, I took a wow of never eating shwarma in Lod.

Sunday, October 22, 2006

Boymelgreen Woke Up Union Bank

Reb Schmaryahu Boymelgreen, a haredi returning yored wants to buy the bank. When he bought Solomon and renamed it to use it as his TASE instrument, I was sceptical but it went up hundreds of percent. Now he wants to buy a bank and talked to the owners of Union Bank. They are the Eliahu and the Landau families people, they are not talking to each other, and it is a miracle the bank keeps going on on autopilot. Anyway, like a girl that gets an admirer and her attractiveness increases, so grew this bank's price. The Sponser site says it is a good price to get in. I am in and losing some 25%. Buy more?

The illustration is a comic Happy New Year postcard from Hungary a hundred years ago. Written: From your most grateful servant, Leszlauer Samuel.

Saturday, October 21, 2006

BTQ Seems Real

I am following BioteQ a 5 years old startup in a field I feel I know something. I concluded it was one of those fake environmental companies, but it had issued its Third Quarter Report of Results and it seems bona fide good. May I am wrong and this is a good company and investment opportunity?

BioteQ Environmental Technologies Inc. (TSX VENTURE:BQE - News) today reports on its third quarter results:
- All operations were profitable
- All operations met environmental and safety objectives
- Overall profit reported for the first time
- Full results will be filed on SEDAR

The Company has reported its best financial quarter to date, showing a small profit for the period. All of the operating plants were profitable during the quarter, resulting in positive net income for the period, after all operating and other costs, including new project development costs. The number of new projects under development is currently at its highest level in the Company history.

BioteQ is establishing itself as a leader in the treatment of acid contaminated water through the use of its patented BioSulphide® Process and related sulphide technologies. Focused on the mining industry, BioteQ has partnered with leading metal producers including Phelps Dodge, Breakwater, INCO, Jiangxi Copper and Falconbridge as well as utilities operator EPCOR Water Services, to finance, design, build and operate mine site water treatment plants which recover saleable metals in addition to meeting ever stricter environmental regulations.

Friday, October 20, 2006

Corruption in Quito's Water Corporation (Emaap-Q)


La Comisión Anticorrupción encontró indicios de responsabilidad penal en contra de un funcionario de la Empresa de Agua Potable de Quito (Emaap-Q). Según una investigación del organismo, Francisco Trujillo, supuestamente, cometió los delitos de cohecho y enriquecimiento ilícito. Trujillo trabajaba desde el 1 de febrero del 2003, como fiscalizador en la Gerencia de Operación y Mantenimiento de la Emaap-Q. La indagación se basó en el movimiento bancario, desde inicios del 2004 hasta marzo del 2006, de Trujillo y su esposa, Elizabeth Romero. Presuntamente, no se justificaron ingresos por 41 824 dólares en el 2004; 480 001 en el 2005 y 100 766 en el 2006. Esas cantidades no cuadrán con el dinero que recibió Trujillo por su trabajo en la empresa. De acuerdo con sus ingresos mensuales, percibió 53 310 dólares, durante los tres años. Su esposa no trabajaba.

Otra de las supuestas anomalías es el depósito de dinero de contratistas de la Emaap-Q en las cuentas bancarias de Trujillo. Ellos fueron Byron Ibarra y José Chica, quienes habrían depositado 5 329 dólares y 10 350 dólares, respectivamente. Tanto Ibarra como Chica eran contratistas de la empresa, por el alquiler de volquetes. Sin embargo, la Comisión Anticorrupción detectó que cuando se firmaron los contratos, ninguno de los dos poseía vehículos.

The corruption is so rampant that he used his own bank account and deposited cheques of suppliers in his account.

The Stock Doctor Notices TSEM

Tower is starting to call the attention of American analysts. The Stock Doctor is one of the most alert. If Americans start investing in TSEM, I will attend next year's WESTEC or some other convention. Go, yanquis, Go!

Water Business in Britain

The Economist writes: DESPITE being something that falls from the sky, water is suddenly in demand in the City. Several of Britain's water firms, including Anglian and Severn Trent, have been in the news as possible or actual takeover targets. The biggest is Thames Water, which serves 13m customers in and around London and has been the subject of a bidding war for several weeks. The contest finished on October 17th when RWE, Thames's German owner, announced that a group led by the Australian bank Macquarie had won with an offer of £8 billion (including debt), trumping even the petrodollar-financed Qatar Investment Authority.

Water mania is one symptom of a broader fad for utilities. Investors are seeking boring industries with predictable rates of return to balance their portfolios of chancier investments. Government bonds traditionally met that need, but yields are low and investors are looking elsewhere. Water companies are especially attractive: they are the monopoly providers of an essential service for which there is no substitute, and Ofwat, the industry's regulator, allows them to earn an attractive rate of return.

Thames Water is risky. The firm's miles of Victorian pipes are so decrepit that almost a third of the water that flows through them seeps into the ground. (In Israel the losses amount to 5 to7%). With London's population forecast to grow even as the skies dry up (what does it mean, rains will decrease?), Thames Water will have to build lots more infrastructure. A proposed new sewer under the river Thames is predicted to cost around £2.5 billion; a planned new desalination plant £200m; and a new reservoir in Oxfordshire £1 billion. All these estimates are preliminary, and big engineering projects have a tendency to bloat.

Thursday, October 19, 2006

Tomorrow Starts the Semester

Tomorrow I start teaching the semester in the Michlelet Ariel, recently upgraded to University. I have to prepare my first exercise.

Tao 6: Winner!

Cautiously, I am checking the options and warrants jungle. The DayTrader fellow advised to buy Tao Warrant 6, and today it went up 7.5%. The warrant moves at a multiple of 2.5 of Tao share, so the up and down movements are dramatic. I realize now that I misunderstood DayTrader, who buy and sells during the day, but lo! I am winning with Tao 6. What is Tao? I dont really understand except that is sheled bursay - a stock exchange skeleton? - owned by one Ben Dor who operates in all kinds of business deals. The portfolio is doing very well these days, except my holdings of Machteshim Agan, recently downgraded by Deutsche Bank, which is starting to play a large role in this country.

Wednesday, October 18, 2006

The Profitable Israeli Start Up Export Industry

A new, unheard-of industry is developing in Israel: Start-Ups, that is small companies nurtured still they are viable and then sold to foreign concerns. Great coproporations find it difficult to innovate, which is the key to their survival, so it is much easier and cheaper for them to buy ready-made small companies. I am invested in this new industry through a closed fund of one of the largest banks, but the fund has lost half of its value from 2000. I bought it when the hi tech bubble was expanding, but soon it exploded and the startups were shown to worth nothing. Now is trying to build up itself again, but it is uphill. Lately they bought other fund shares, "to be exposed to more startups". A kind of funds of funds idea. It is a way of saying - we give up, know nothing.

Foreign investment in Israeli start-ups has totaled $2.1 billion since January 2006. Top of the list is optical communications solutions developer, Passave Technologies, which forewent a Nasdaq IPO in favor of being sold to PMC Sierra Inc. (Nasdaq:PMCS) for $300 million in shares. Passave’s founders sold their shares in the company a few days after the sale. 31 start-ups have been sold since the beginning of the year. Three start-ups were biomedical or medical devices companies: ColBar LifeScience Ltd., Alma Lasers Ltd. and Predix Pharmaceuticals Inc. The other companies developed technology of one kind or another.

EMC Corp. (NYSE:EMC) has made more investments in Israel this year than any other foreign investor. Since January, it has acquired three Israeli start-ups: Kashya, nLayers, and Proactivity for an aggregate $233 million. Software giant Microsoft Corp. (Nasdaq:MSFT) has acquired two Israeli start-ups since January: Gteko for $120 million and Whale Communications for $76 million. 2006 has also been the year in which other US giants decided to buy an Israeli start-up. Xerox Corp. (NYSE:XRX) acquired XMPie Inc. for $54 million. McAfee Inc. (NYSE:MFE) acquired Onigma Ltd. a few days ago for $20 million.

Most of the acquisitions were in cash. Exceptions were the acquisition of Passave and SightLine (a cash and share-swap deal), the merger of Predix with Epix Pharmaceuticals Inc. (Nasdaq:EPIX), and four other acquisitions for sums of between $2 million and $52 million. Of the 31 start-ups mentioned, seven were sold for over $100 million, and accounted for half the total foreign investment in Israeli start-ups so far this year.

None of the startups was in the water area. The pic illustrates the state of the water industry in Israel (click to enlarge).

Tuesday, October 17, 2006

Israeli Men Lose Right to Sex


Israeli Courts used to award paid lifelong sex services to military and civilian paraplegics, on the reasoning that a man who lost its capacity to attract women is still a man and has a right to a normal sexual life. Therefore, the compensation package awarded to accident victims and military wounded in the course of training or enemy action, should aim to restitute the loss suffered by the person. Insurance companies and the Armed Forces's Rehabilitation Agencies took care that these people enjoyed their right to sex, para decirlo pronto y mal, paid for the whores. That is going to stop as from today, because the Supreme Court decided that, being the sex an illegal business in Israel, courts could not suffer and less order payments to "criminal" elements. This is one of the first decisions of the new Supreme Court, headed by Ms Dorit Beinish, and it may point to a new, some say extreme feminist direction of Israeli Supreme Court.

Readers should remember that the new Supreme Court Decision's is in fact reflecting the direction the wind is blowing in Israel. Just now, Israel is undergoing a "constitutional" crisis, since its President Moshe Katzav is under investigation for rape. All started when the schmendrik we have as President asked the help of the Attorney General, revealing to Mr Mazooz that a former (female) employee was blackmailing him. The Attorney General ordered the police to carry out a comprehensive investigation ... of the President's sex history. All former acquaintances of the President were interrogated, and eight old affairs were discovered. The most exciting details of the stories of these oldish women about their passionate romances with the young man who would be Israel's President, were all leaked to the press. These "crimes" happened in the far past and cannot be investigated, and are not acceptable in court, but the press already succeeded in painting the man's character as a febrile sex maniac, a dangerous monster. Female organizations hostilize the President in a way that he was forced to suspend all public appearances. On the other hand, the police has also discovered that the woman who was blackmailing the President had a long history of blackmailing former employers, and that she managed - how to put it delicately? - an active, multiple, diversified sentimental life. But facts like the accuser is a professional sex worker or one's legal wife are totally irrelevant in rape cases. The President has recorded a phone conversation where she is asking him 200,000 dollars, but incredibly, the recording is being considered not only irrelevant to the rape case but actually has caused the President to be charged with illegal wiretapping. Rape and wiretapping are very serious crimes in Israel, and they may send the President to up to ten years in jail. In the current situation, the President is unable to function as such and carry out his constitutional duties, such as opening the Parlament's winter sessions, so in fact he has no choice left but to resign. This morning I heard on the radio an interview with the President's wife Gila, where the female interviewer asked her if she was considering divorce. Gila, shocked to her bones, said things like "Moshe is pure", "We share our conjugal bed for 30 years", "Everybody always respected him so much" and "We have rised such a wonderful family". The interviewer continued manipulating the confused emotions of this very simple fat middle aged woman, till she succeeded in breaking her down. This is circus for the masses, more exciting than watching Christians being fed to the lions. May be it is the same thing.

Monday, October 16, 2006

The Tao of TAO Warrant 6

Yesterday I ran to buy Tao Warrant 6 since it was recommended by Soher Yom(Daytrader), a forum personality expert in options. Yesterday it ended very high. Today I read that he had sold it at the end of yesterday trade (which is what daytraders do), I didnt and today it sunk 8%. In balance I am 15 dollars lighter. Margiz. The ups and downs of Tao, a stolid investment company, are unexplained. Manipulation?

Sinai - Kfar Saba

These are pictures of my first months in Israel, anno 1976. I arrived to Israel from the United States, with a world round ticket from Lufthansa bought in Lagos, which was the only way I could take out my savings in Nairas from Nigeria. I felt a sense of excitement and familiarity in Israel, because in those times, Hungarian was much heard in Tel Aviv and many Hungarian restaurants and sweets shops could be found on Allenby Str. where was my room. I also visited my relatives whom I only knew from letters to my parents, and I was surprised by the health and vitality of the people. Most I loved Schloyme Herzfeld, from the collective religious moshav of Nir Galim, he had four married daughters and twelve grandchildren, and seemed rich to me (the meshek had ten or more tractors) and living very well. He was a nice blond and blue eyed man, very friendly. He had gone from Auschwitz directly to Palestine, but the British intercepted their ship and was interned in Ciprus for 8 months, then fought in Israel wars, was made prisioner in Egypt and now he was member of an agricultural settlement in the Negev dessert. He told me that not long ago the army had killed a band of fedayoons near the water well, but he seemed optimistic and a believer in Israel's future. I decided that he had what I wanted and his example influenced me to settle in this country.
Another one who made me stay here was Benny Abelesz, my uncle by my Mother's side. He also made the same route to Palestine and was seriously Zionist, having made a carreer in the Army. He was a Lt. Colonel and just retired from the Army. He had been sent through the Sochnut to Argentina to make some P.R. work, I think it was more of a farewell present. Presently had nothing to do, so he took me a country-wide tour and to Jerusalem, where he convinced me to stay a time in Israel and arranged for me six months of free ulpan in Tel Aviv. It was in the Borochov street and it was for single academic youths. Many American girls, some of them very attractive. See the pic, click on it to enlarge. In two months I was working free lance for TAHAL with the idea of being sent on mission to Nicaragua with a fantastic salary, which was carried out as said by Mr Chaim Ben Ezra, one of the most interesting Jews I ever met and the one of the few bosses who appreciated me and advanced me.
The two group pic show my friends in the ulpan on Borochov str 3 Givatayim. I was terribly hot for that girl down right, but she did not give me a chance to get near her, it was platonic to the end. The standing girl is Riva Spitz, a medical doctor from Riga, Latvia, a nice skinny girl, she was friendly but I didnt like her.
Up there are pictures of an excursion to the Sinai Peninsula, then under Israeli control. The gun is in Sharm A Sheikh, and it caused a war for impeding the passing of Israeli ships. Then we climbed early morning (when it was cooler) the Mountain where Moses spent 40 days. We also visited the Santa Catarina monastery. Then it was open and not used to tourists, we were allowed to see the old books and their cemetery of bones.

Nigeria






Being in Corrientes, I was offered a job in Africa, an expatriate position, which was my dream. I was sent to the Bauchi Meat Products Company, in Bauchi, Nigeria.

It may have been the start of my inclination for planning and building, since I built a bridge based on a 22 m long Mercedes chassis found in Jos, and a dam on an unnamed stream in Galambi Ranch. The stone wall was to be the inner nucleus of an earth structure, but it was never finished. I lost interest and after 1.5 years in Nigeria, during which my salary was not deposited in my account, I was desperate to get out. I travelled to Lagos and with ranch money, I bought a ticket to Buenos Aires and left. Later I was paid all my salary, a nice lump sum. The two white boys sitting there are me and my colleague in the Ranch, a blond boy of Dutch-Jewish origin, name Durhiem. He had been working in a ranch in Brasil, got hepatitis, then came to Bauchi.
The people marching with museum rifles are the Emir of Bauchi's army, celebrating something, may be the Emir's birthday. I took many pictures of the celebrtion but they were lost except this one. The army had twenty or more soldiers on horse, many with sables. Bauchi, in the Sahel, was really isolated and "authentic" in my days.
Bauchi was one of several fulani kingdoms in the Sahel, like Sokoto and Maiduguri. We went once to visit the Emir, he received us in a big mud hut, it was shaded and cool, and we sat on the floor. I asked him a few historical questions, he answered nicely. He had a high walled mud palace complex in the centre of the town, where he lived with his harem. His retainers had mud houses around his palace. We hired a tall fulani to be our workmaster, he lived behind the palace. He let me enter to the reception hall that all houses had, and in the floor were sitting dozens of boys reciting the Quran. He also worked as teacher of religion. In addition he had a Ministry post, of inspector of animal diseases.
The main industry of the area was cattle raising, which was in the hands of the nomadic fulani (the local people was called Hausa). The fulani moved with their cattle according the seasons, moving north in the rainy season and coming down to the south in the dry season, all in searchof pasture for their miserable cattle (see enclosure). The Bauchi Meat Company was based on these herds, but the cattle was of poor quality, diseased and very skinny. The idea was to take a natural reserve and to transform it in a 13,000 hectare cattle ranch, that would produce forrage to fatten up the famelic cattle before slaughtering. Also cattle supply was stationary, so the ranch could equalize the supply, allowing the factory to operate year round.
I was hired to build up the infrastructure of the ranch, but during the first year money was not coming, and then I lost interest in the project. My Boss was Kenneth Clark, an Argentine English meat industry man, a very nice person, I never deserved the kindness he always showed towards me. One of the reasons of my unsatisfaction was that the salary was not being deposited in my account, as promised, so I feared I was wasting my time in Nigeria and being cheated out of my salary. I left by my own means and returned to Buenos Aires. After a few months, I received a cheque from Latinoconsult's president, .. Russeau Portalis. Soon after I left for the United States and Israel.

Adios Pampa Mia



I was talking about vacations in Cordoba - there I am on horseback, La Falda - Valle Hermoso, 12/2/1961. It was a suffering docile horse, abused the vacationing children.
Then you see me in guardapolvo, that was obligatory in elementary school. I received an used lab one from my uncles, which my mother arranged. The picture is in front of our home in calle Ramon Falcon 6624, Liniers, and you can see the sign we put out "Se arreglan camisas". It must have been in 1957 or 58, during our first years in the country, when my mother repaired shirts, because we were pennyless. Sometimes I delivered them by bycicle, till once an expensive shirt was cought in the bycicle wheels and totally ruined. It was not a small loss for us then. Later my mother started making confection blouses that my father sold to shops, and the business developed to a confection sweat shop, with my parents doing the sweating.
There is a picture of the university's bus taking the class to Pehuajo, a trabajo practico. In the pic, my friend Hara (a Japanese Argentine boy, very good student) and the other collegue, Alberti or something (oh no! I forgot his name.)
The passport pic is from november 1965. Then, three pictures I took of my parents, the day I left Buenos Aires, July 10, 1976. They seem worried. That was the last time I saw my Father, because in October he received a massive heart attack and died. I was then in Israel, and received the news through a letter by Vera and Pedro Biro, friends who helped my mother with the arrangements and later left for Forth Lauderdale and Boca Raton, Florida. Behind is my white Rambler, a big car for Argentina. After I decided not to come back to Argentina, Lucio sold it for the irrisory price of 5,000 dollars.

The upper scan shows me with firearms in Corrientes, Argentina. Firearms, in that time, were sold freely and were unexpensive. I bought a 35 mm revolver and other fierros to impress the natives. When the situation in Argentina became dangerous, I threw them all out somewhere together with many books. Not that my books were specially revolutionary, but having so many books was suspect in itself and hazardous to one's health in those dangerous times in Argentina. I miss only the protocols of the congress of the Russian Academy of Biology where Yefim Lysenko imposed his theory, with many emotional speeches by scientists and agronomists for Weismannism and Mendelism. It was in Spanish and bought it in a calle Corrientes bookshop in the cheap unsaleable books tray. Lysenko used Stalin's political backing to combat idealism in the biological sciences. His opponents ended in Siberia or were shot. Lysenko's rule led to Khrushchov's campaign of tilling new lands and the agricultural decay of the Soviet Union. A long forgotten ideological war, it is a book I miss. The situation in Argentina was such that it was enough to have one's telephone number in the possession of a guerilla suspect to be taken in and disappear in la maquina. I wanted to go to Venezuela, but it was impossible to get a visa, so I went to the United States and then to Israel.
The pic with the school was taken in Estero Cafarreno, a lost village in Goya, Corrientes, where I organized a course for tractor drivers, within the framework of a provincial program of distribution of tractors for shared use. It was March 1974. Peron had built many nice schools in remote rural areas.
The color pic was taken in Margarita Szabo's bat mitzva, September 11, 1982. I was by then in Israel or on mission by TAHAL. Margarita (Maggy) is shown with his Father Jorge (Gyuri) Szabo (left) and Bela Schwarz, who was not a relative but good friend of the Szabo. Maggy is now married to Hugo Cohen with two boys Dan and Joel.

Sunday, October 15, 2006

Three Days of Combobulation


Friday was holiday - Siches Toire, then Shabbes and in the evening we went to the Roman Anfitheater of Beit Govrin, some flamenco show with choripanes and empanadas. The place is nice and cool, but the guitarrists - a disaster. Today I spent two hours in the bank and investing, then a Client called me desperate that the plt file I sent to printing could be opened and he wanted to submit it today in Lodim. I spent the whole day trying to solve the problem, till my friend Arch. Ram Segal told me to check the kind of printer they had... It was discovered that they have an old HP 750 C that is unable to open more advanced files. I started to download the antique driver but later checked an old computer and there it was. I resent the file but by then, 5 PM, the printshop was closed. A day gone.
Once more I have some spare money to invest, and searched for something speculative. I frequent several bursa forums (forii) and got the idea of TAO Warrant 6 from Soher Yom (Day Trader), a prominent participant in our chats. Israeli forums are very friendly, the tone is respectful and helpful, and I found that there are local gurus who impart their knowledge freely and honestly. Not like American forums, where people are aggressive and insulting. So this Daytrader person explained me why he expected a "pritza" (outbreak) and that he himself bought at 25 shekel. The price was already 27 and rising, I spent an hour trying to talk to the bank to order a purchase, but my trader happens to be on vacations. A girl did the buying for me at 27.5 and it ended the day at 29.5. The Daytrader commented that I should operately directly inthe bursa with my computer. Tower lost height in today's trade, it was a correction or profit taking, or the stock changed direction. All in all, the portfolio sensibly finished higher, paying the bottle of red Pinot Noir wine I am going to open now. L'Haim, Sahkan Yom!

The fantasy tower shown is from Sultan Qaboos University and not from Disneyland.

Barrister Adama - Thank You!

My name is Barrister Callistus Adama, the attorney of the former president of liberia MR CHARLES TAYLOR.I am now seeking your assistance to recieve the two boxes of $30.8MUSDollars which my client has aggreed to compensate you with percentage of 30% for your noble assistance 65% for me for further investments in your country.Send me your Cell-Phone and fax number with detailed address for delivery of funds.Get back to me via my alternative email address: (barr_callistusadama@myway.com)
Sincerely,
Barrister Callistus Adama

How can you refuse such a generous offer?