This morning I took another loan and bought Koor. They say that if you are not worried, then you are not risking enough (or you havent heard the news). I am not worried. I am sad; I have no one to tell. I miss my Mother.
Why Koor? Reason One is that I made a nice profit with it in 2009. Koor took a loan from Goldman Sachs to speculate with Credit Suisse shares and made much profit, which distributed as dividends. Very Decent Folks. Reason Number Two is Psagot analysts theory that Koor is going to be closed. The fact is that according to TASE rules, KOOR had to have 1% of its shares in the MAOF market, which it could easily do but didnt. Psagot thinks that they want to retire the stock from TASE, and they are buying it back. KOOR is selling about 25% below the total worth of its holdings, so it is cheap and it is a good moment to close it down. KOOR is a holding company that adds no value to its owner: it could be closed down and Nochi Dankner could manage its holdings directly.
SINOCHEM failed to buy Australian NUCHEM and is searching for another agrochemical company. One of KOOR's largest holdings is Machteshim Agan, a large agrochem company that is battling the Chinese in many markets. It makes much sense for KOOR to sell it to its competitors, because the Chinese are outcompeting Machteshim. The Chinese probably would close the Israeli factory and move production to China. This may be the reason why the Minister of Finance Yuval Steinitz visited Nochi Dankner in a very unusual move. Israel doesnt want to lose this important factory in the Negev.
6 comments:
The Chinese would bring their own people to run Machteshim Agan. They are Chinese rubber-tappers in Africa and tea-growers in Sri Lanka. Mind you these rubber tappers live in the same conditions as the Africans. They are not a latter day incarnation of Baroness Blixen having tea in the patio, contemplating the vastness of the Serengeti. They intend to dominate the entire supply chain. This has the added advantage of relieving unemployment at home. Israelis would be left with crumbs. If Nochi Dankner is as wealthy as you say he is, it should not cost him too much to exercise some patriotism by keeping control in Israeli hands. The Ozzies know the Chinese game. It is heartening to see Australian capitalists reject all the Chinese blandishments to turn Australia into a resource extraction colony.
On the other hand, the Chinese are competing very aggressively against Machteshim in all world markets with similar products at a lower price. Resistance may be futile.
צשמט פקםפךק ןמ איק 'םרךג גם מםא ךןלק איןד אטפק םכ בסםצפקאןאןםמץ
איןמעד 'ןךך בםצק אם ש יקשג /וןאק דםםמ
שמםמ
Nixon and Kissinger's idea was to make place in the world for the Chinese to sell their cheap wares so to feed their people. When Kissinger opened up China, people forgets, the Chinese were starving, literally starving. I was among the first Israelis working in China and they told me how they grew algae in urine to add a few calories. But now they are destroying the world's industries and creating widespread unemployment. They are becoming cocky and insulting. Are Americans starting to doubt Henry Kissinger's wisdom? I suspect Machteshim Agan is agonizing, has tremendous unsold inventary, no one dares to suggest anything. I hold the share...if they sell it, it will be a hit. If not, slow death.
Of course, with the retrospectoscope, all was predictable.
Anon.
When Nixon and Kissinger made the decision to open up China and allow it to earn a living in world commerce, the issue was debated in all the media. I remember The Economist running several analysis and all were for free trade, and were mesmerized by China's enormous market for manufactures. Now no one dares to examine the consequences of that decision because China is too powerful. In Israel we are feeling China's presence: the textile industry has been totally erased, the last factory closed last year. The industry is no more, the furniture industry has disappeared, the last air conditioner factory closed last year and sacked its 500 workers, and the chemical industry is fighting for its life. People is desperate. I imagine what is happening in the rest of the world. The Chinese are OK, they are a military menace to no one, they try to be good world citizens, but the transition is difficult.
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