NICE and Equity One owe their success to their outstanding management teams. New biotech company Tissera has an excellent management team too, but investors should still tread with caution.
NICE Systems (Nasdaq: NICE; TASE: NICE) is continuing to capture new markets. Its latest deal with Network Rail, the owner and operator of the UK’s railway infrastructure, amounts to the big time. Network Rail is responsible for the operation, maintenance and development of Britain’s tracks, signaling system, rail bridges, tunnels, level crossings, viaducts and 17 key stations.
As part of its National Voice Recorder Project, NICE will fulfill phase one of the project that will ensure all interactions between signal operators and train drivers are captured and stored in compliance with strict corporate policy. The system that NICE is providing will enable compilation of evidence and information sharing in the event of a post-incident inquiry. This deal is worth tens of millions of dollars.
NICE, which was recently rated “Buy” by the Bank of America, which set a target price of $38, is trading at a multiple of 25 for 2006, and 23.5 for 2007. The stock’s premium is due to the company management, which delivered one of the greatest comebacks both in Israel’s technology industry, and elsewhere. In his review, Bank of America Securities senior equity research analyst Daniel Cummins said that “NICE is well positioned to capitalize on investment trends in converged voice-video data collection and analysis, advanced CRM, compliance and security.” This is the test of a successful manager; take a niche company and give it a leading position in a growing niche. While the stock is a bit expensive at present, I still feel that the chances of making a profit are several times higher than those of making a loss, and this, of course, is not the kind of profit that can made in an instant. http://www.globes.co.il/serveen/globes/docview.asp?did=1000160137&fid=1052