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DewDiligence

11/09/05 12:38 PM

#354 RE: gfp927z #353

[OT] ESLT

>do you have a link to that new I-Hub board covering Israeli companies? I'm interested in getting more info on Elbit. Any other boards you would recommend that cover them?<

There are a few different boards to consider: the ESLT board (#board-3936), the Israeli Defense/Homeland Security board (#board-4433), and the Israel Medical-Healthcare board (#board-4432). You’ll notice that Dubi is a major contributor to all of these.

>I was wondering how with revenues near 1 Bil, their market cap is only ~1 Bil? They look like an extremely interesting company.<

The low P/S of around 1.0 derives from the fact that defense contracting is a relatively low-margin business. If you’re an optimist, a low net-profit margin can be a good thing because a small absolute expansion in the margin can translate into a sizable any expansion in the net profits. Regards, Dew