Syneron Medical Ltd (ELOS)

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Thu: We need more Yokne’ams
Given Imaging and Syneron Medical share an honorable mention from Zacks, and a town that should be a model for Israeli tech investment.
Shlomo Greenberg

Zacks analyst Charles Rotblut CPA periodically compares the circumstances of different industries in the US. This week, he looked at alternatives to the housing industry, which he said “received an unwelcome jolt”. In his opinion, what happened to the prestigious company Toll Brother (NYSE:TOL), which disappointed investors by missing fiscal fourth quarter earnings and cutting its guidance for fiscal year 2006 two weeks ago - signs of cracks in the strong US housing industry, and implying that money should move to other sectors.
But where? Rotblat suggests that medical instruments is the answer for money seeking long-term growth investments. I wholeheartedly agree. “product innovation and strong profit reports are fueling bullish sentiment within this group.” And who does Rotblat cite as examples? Boston Scientific (NYSE:BSX)? No. Johnson and Johnson (NYSE:JNJ). No again. He mentions Syneron Medical Ltd. (Nasdaq:ELOS) and Given Imaging Ltd. (Nasdaq: GIVN; TASE:GIVN).

I, as you know, believe that medicine and healthcare in general are the best investments in town, regardless of when. Pharmaceuticals and medical equipment are two kinds of products that have no 1,000:1 chance of being in oversupply. Both Syneron and Given Imaging, as well as several other very successful companies, are based in Yokne’am.

I mention Yokne’am because it has become a very important technology center, with a strong reputation outside of Israel, too. In my opinion, the government should pour money into places like it, in order to create two things. One is a good and worthwhile environment for investors and entrepreneurs, so they’ll invest in Yokne’am, rather than in Palo Alto or in the Netherlands. Second, such investments make a quick return and boost local employment.

I don’t know if you know, but Israel has no high-tech advantage today except for its people. Therefore, to those seeking how to leave, I recommend to the government to set up and foster more Yokne’ams throughout the country. Not only are they environmentally pleasing, they give reasons for visitors to investment.

http://www.globes.co.il/serveEN/globes/nodeView.asp?fid=1052

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