3SOF

David another good breaking news :

6/20/2007 6:47:37 AM *Aladdin Knowledge Board Increases Ordinary Share Repurchase Authorization By Up To $10 Mln [ALDN]

Aladdin doubles buyback plan to $20 million

By Robert Daniel
Last Update: 7:02 AM ET Jun 20, 2007


TEL AVIV (MarketWatch) -- Aladdin Knowledge Systems Ltd., (ALDN : aladdin knowledge sys ltd ord
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Last: 20.58+0.10+0.49%

3:59pm 06/19/2007

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ALDN20.58, +0.10, +0.5%) the Tel Aviv provider of computer-security solutions, said the board doubled its authorization to buy back stock to $20 million. The original $10 million authorization, authorized April 1, set a maximum 500,000 shares to be bought back. The company said it's bought 465,000 shares so far; a statement didn't specify a dollar amount on those purchases. Aladdin shares closed on Tuesday at $20.58. The shares closed at $17.27 on Friday, March 30, indicating a rise since then of 19%. At March 31, Aladdin had 14.7 million shares outstanding

Great news

QuoteGreat news

This is fantastic news Garoh! It's the way the company is responding to that CIBC downgrade. 465,000 shares already bought

It's incredible how the market can be so inefficient at times. ALDN declined from a high of $22.97 to a low of $19.53 because CIBC world markets said the Indian deal was "baked in" the valuation of the stock. Remember they said this without knowing the specifics of the deal, and considering a wide range of possibilities. I disagreed with their view.

And management, who sure knows more than CIBC and probably won't talk to them anymore, responded today:

• Aladdin Knowledge Systems Increases Share Buy Back Program
PR Newswire (Wed 6:45am)

No, they didn't do this to pump and dilute, they've done it because they already bought almost all of the prior share buyback program:

«On April 1, 2007, the Company's board authorized the repurchase of Ordinary Shares of the Company for an aggregate purchase price not to exceed $10,000,000 or for a maximum aggregate of 500,000 shares. The combined total authorization is now $20,000,000. To date, the Company has repurchased approximately 465,000 shares.

Yanki Margalit, Chairman and CEO of Aladdin Knowledge Systems, said, "Aladdin's board continues to see fundamental value represented in the current share price and the increased buy back authorization is further evidence of our commitment to enhancing long-term shareholder value."»

In just about one month and a half, the company bought back 465,000 shares. And it will buy 500,000 more. This has a positive effect on diluted earnings per share. And it's evidence that management doesn't see the Indian deal as CIBC does, everything is set for a positive surprise on that front.

But, why the inefficiency, you may ask? Well, because with this news the stock should have almost immediately jumped to $23, rising 10%. This because the market perception created by the CIBC downgrade should have changed and therefore the price should have recovered all the lost ground. Instead the stock rose just 1% on low volume. Well, it's an opportunity for the bulls to load up some cheap shares.

I'll keep holding ALDN.

The increase in the share buyback program wasn't enough to spark interest in ALDN. I find that weird, but know from past experiences that sometimes the news doesn't have an immediate positive effect, look at what happened with INSW, for example (at www.stocksonvideo.com).

I'll keep holding ALDN.

If I were to sell ALDN here, I would probably be selling my shares to the company itself.

The 465,000 shares the company already bought and the 500,000 more it will buy over the next few months is a pretty significant number. It will reduce the number of shares outstanding from 15.11 M to about 14.1 million, that is, a 6.6% reduction.

I had 1 as a dilution factor estimate at my valuation model, but given this positive development I'm going to change it to 0.98.

I'll keep holding ALDN, don't know what the bears have in their heads.

FYI
You might want to limit your Israeli exposure,

Sunday, June 24, 2007 12:10 a.m. EDT
Israel's Military Intelligence Chief Warns of War This Summer

Israel's military intelligence chief warned Sunday that Israel is on the brink of a war that could break out as early as this summer.

Major General Amos Yadlin told the Israeli Cabinet that several factors were moving the nation toward war.

According to the Jerusalem Post, Yadlin cited Iran, Hizbullah, Hamas, World Jihad, and Syria who the paper quoted Yadlin as saying "are all actively working against Israel, and may force a conflict as early as this summer."

"Any one of these authorities can bring about a deterioration in the situation this summer," Yadlin said.

  Yadlin's comments come as the militant Islamic faction of the PLO, the Hamas terror network, has taken control over Gaza and is battling with the moderate wing Fatah for control of the West Bank.

Along Israel's northern border, Iran's backing of Hizbullah in Lebanon has added more worry for Israel.

Syria, which also shares a border with Israel, appears to be preparing for a major conflict.

Earlier this month Britain's London Telegraph reports that Israeli officials believe that Syria is preparing for a major war against the Jewish state.

"Israeli intelligence officials have been warning for weeks that Syria is investing hundreds of millions of dollars in anti-tank weapons, antiaircraft rockets, and other missiles, and bolstering its presence along the Israeli border," the paper reported.
Also unsettling were comments from Mohammad al Habash, a Syrian parliament member, who made a recent appearance on the Al Jazeera satellite channel.

Al Habash said Syria was "actively preparing for war with Israel, which he said he expected to break out this summer." This month Israel's military engaged in war games in preparation for a Syrian attack.

"Israel seeks peace with Syria," Israel's Prime Minister Ehud Olmert said. But he cautioned "miscalculations that could cause the security situation to worsen".

Thanks for that post Yukii - Applaud (P.S. I am liking the kinder/gentler Yukii! LOL)
Sounds like the Mid East is trying to avoid the US attacking Iran directly....
Fear and Greed....Fear and Greed.
I am overweight in these Israeli stocks...
I think I'll wait to see if I get a boost with second quarter reports and then pull out a bit.
David - what say ye?
I don't have enough experience to know how a war in a country can affect its stock prices?

All the Best
GMan

Quote from: guitarman on June 25, 2007, 03:50:42 PM
Thanks for that post Yukii - Applaud (P.S. I am liking the kinder/gentler Yukii! LOL)
Sounds like the Mid East is trying to avoid the US attacking Iran directly....
Fear and Greed....Fear and Greed.
I am overweight in these Israeli stocks...
I think I'll wait to see if I get a boost with second quarter reports and then pull out a bit.
David - what say ye?
I don't have enough experience to know how a war in a country can affect its stock prices?

All the Best
GMan

Thanks, trying to be delicate
Pretty much closed all indexes at support today. bought GGN IEAM ALY

QuoteI think I'll wait to see if I get a boost with second quarter reports and then pull out a bit.
David - what say ye?
I don't have enough experience to know how a war in a country can affect its stock prices?

Well, you at least have seen what happened when the US invaded Irak on both the US and the Iraki exchanges, right?

Anyway, these companies are Israeli only on paper, for example ALDN has subsidiaries across the world and only 4% of its annual revenues comes from Israel. Sure, there would be a short term impact, but I don't think a war between Israel and Syria, for example, would change the fundamentals of ALDN or CIMT.

Nothing new on ALDN yesterday, I'll keep holding.

NEW YORK, June 26 (newratings.com) - Analysts at Lazard Capital reiterate their "buy" rating on Aladdin Knowledge Systems Limited (ticker: ALDN). The target price has been raised from $24 to $26.

In a research note published this morning, the analysts mention that investors are undervaluing the impact of the company's CIITE deal, which is likely to be worth tens of millions of dollars to Aladdin Knowledge Systems over the forthcoming two-to-three years. Aladdin Knowledge Systems expects to generate revenues of $95-$102 million and GAAP EPS of $0.90-$1.09 this year, excluding the revenues from the CIITE deal, the analysts say. The company has accelerated its share repurchase programme by another $10 million, which is likely to be accretive to its EPS going forward, Lazard Capital adds.

Quote from: yukiii on June 26, 2007, 11:01:53 PM
NEW YORK, June 26 (newratings.com) - Analysts at Lazard Capital reiterate their "buy" rating on Aladdin Knowledge Systems Limited (ticker: ALDN). The target price has been raised from $24 to $26.

In a research note published this morning, the analysts mention that investors are undervaluing the impact of the company's CIITE deal, which is likely to be worth tens of millions of dollars to Aladdin Knowledge Systems over the forthcoming two-to-three years. Aladdin Knowledge Systems expects to generate revenues of $95-$102 million and GAAP EPS of $0.90-$1.09 this year, excluding the revenues from the CIITE deal, the analysts say. The company has accelerated its share repurchase programme by another $10 million, which is likely to be accretive to its EPS going forward, Lazard Capital adds.

Thanks for this post yukiii

I hope this recommendation brings some interest to ALDN, since the chart is starting to look a bit bearish here. It should, since the fall from $22 plus was due to a bearish recommendation saying that the CIITE deal was already "baked into the stock".

The company is also on the bulls side, increasing its share buyback program. I guess they'll buy the 500,000 shares before they announce the magnitude of the Indian deal, then the stock skyrockets.

I'll keep holding ALDN.

QuoteBut, why the inefficiency, you may ask? Well, because with this news the stock should have almost immediately jumped to $23, rising 10%. This because the market perception created by the CIBC downgrade should have changed and therefore the price should have recovered all the lost ground. Instead the stock rose just 1% on low volume. Well, it's an opportunity for the bulls to load up some cheap shares.

The current inefficiency on ALDN shares probably won't last long. The stock is starting to push higher again, as it should, given the fundamental landscape and the company buying back 500,000 shares more over the next few months.

Great News 

One of World's Largest Rental Car Companies to Deploy Aladdin eToken to Meet Payment Card Industry (PCI) Data Security Standard Compliance Requirements

ALDN One of World's Largest Rental Car Companies to Deploy Aladdin eToken to Meet Payment Card Industry (PCI) Data Security Standard Compliance Requirements Jul 2, 2007 06:30:00 (ET) CHICAGO, July 2, 2007 /PRNewswire-FirstCall via COMTEX/ --Aladdin Knowledge Systems(ALDN, Trade ), the leader in Software DRM, USB-based authentication, andsecure Web gateways, today announced that one of the world's largest rentalcar companies will be deploying thousands of Aladdin eToken USB authenticationkeys across many of its U.S. facilities next month. The selection of AladdineToken follows a lengthy evaluation process by the company, directly competingagainst numerous other solutions to meet Payment Card Industry (PCI) DataSecurity Standard compliance requirements. The company will also be deploying Aladdin's industry-leading TokenManagement System (TMS) in order to efficiently and easily manage its rentalcar company employee credentials, as well as the complete token life cycle andits associated security applications -- all from one centralized system. Largeamounts of time spent managing passwords affects productivity at a company ofits size. Thus, the deployment of Aladdin eToken


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Press Release Source: Aladdin Knowledge Systems


Aladdin Knowledge Systems Announces Date of Second Quarter 2007 Results, Conference Call and Webcast
Monday July 2, 6:40 am ET


TEL AVIV, Israel, July 2 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems, Ltd. (Nasdaq: ALDN - News), the leader in Software DRM, USB-based authentication, and secure Web gateways, today announced it will release financial results for the second quarter ended June 30, 2007 before the opening of trading in New York on Thursday, July 19, 2007. The financial results will be released over the news wires and will also be posted to the Aladdin Web site.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040416/CGALADDINLOGO)

The Company will host a conference call, to be simultaneously Webcast, on Thursday, July 19, 2007 at 9:00 a.m. Eastern Time / 4:00 p.m. Israel Time. A question and answer session will follow management's presentation. To participate, please call the following numbers ten minutes before the hour:

With the volume ALDN has been trading lately I would say that the company buying back 500,000 shares may have a huge impact on the share price. Just roughly 22,000 shares changing hands over the past four days, on average, even though there were positive news.

In this case, the lower the volume, the better. The company seems anxious to post second quarter results, which will be released on July 19, a couple of weeks from now:

• Aladdin Knowledge Systems Announces Date of Second Quarter 2007 Results, Conference Call and Webcast
PR Newswire (Mon, Jul 2)

Analysts estimates are the following:



They expect EPS for the quarter at $0.24, compared to $0.26 a year ago. The stock is also roughly 10% below where it was a year ago. I would say there's room for a positive surprise here, clearly the company's management sees the stock as undervalued, since they've been buying back shares aggressively (also, with less shares outstanding, it is easier to post a higher EPS number, because EPS = Net Income/# shares of outstanding.

ALDN should try selling its software piracy protection software to CIMT. It would be mutually beneficial. I'm going to write ALDN with this suggestion.

I'll keep holding ALDN.

Slowly, ALDN keeps rising and today it closed back above the 50 days SMA. The way looks clear to a move to the $22-$23 area. 2nd quarter earnings will be released on July 19th, just 14 days from now. I hope they'll be able to update their full year 2007 guidance, considering the Indian deal.

I believe I've nailed ALDN's fundamentals right and I can only see upside from this point. But it requires a lot of patience. I'll be patient and will continue holding ALDN.