Thursday, June 21, 2012
Is TASE cheap?
Israeli banks are selling at 70% of their capital. Israel's largest holding company, IDB Holdings, is selling for almost nothing and its bonds pay 50%. AMPA, the owner of the Egypt-Israel gas pipeline (currently sabotaged), is worth nothing and its bonds pay 300%! Kardan, the holding company (among its holdings: TAHAL), is rated BB minus and its market value is 80% lower than a year ago. The country is stable and in relative peace, the economy is booming, so why this pessimism? I am heavily invested in "risky" thingies, should I risk MORE? I love risk and I am a contrarian, but should I worry?