Thursday, January 10, 2008
Makhteshim Agan in Free Fall
Makhteshim Agan Industries Ltd. (TASE: MAIN) today predicts a net profit of $14-20 million on $465-485 million revenue for the fourth quarter, compared with a net loss of $39 million on $419 million for the corresponding quarter of 2006. The net profit figure is less than the $30 million market consensus. The announcement sent the share into freefall: it was down 16.5% by early afternoon on the largest turnover on the market. Makhteshim Agan's parent company, Koor Industries Ltd. (TASE:KOR), is down 17.7%. It seems to me an emotional overreaction of the market, people is throwing away the stock for no reason, it means that the Tel Aviv market is a nervous wreck not less than its Wall Street homologue. This year I shall need steel nerves.