October 31, 2012–Two days without trading have left Allot Communications Ltd. (ALLT) and Ceragon Networks Ltd. (CRNT)’s New York shares at the biggest premium to their Tel Aviv stock in at least a month after disappointing third-quarter earnings pushed the Israel-traded equities lower.
Allot, the developer of technology that helps wireless carriers manage traffic, sank to a five-month low yesterday in Tel Aviv, increasing the New York share premium by the most since Sept. 28. Ceragon, which sells its gear to telecommunication operators and Internet service providers, extended its three-day decline in Israel to 20 percent, widening the gap by the most since July 2011. U.S. bourses are scheduled to open today after trading was halted for two days because of Hurricane Sandy.
Ceragon, based in Tel Aviv, reported guidance that trailed estimates. The second half of 2012 has been “slower than everyone originally expected,” Chief Executive Officer Ira Palti said in an Oct. 29 investor conference call. Hod Hasharon, Israel-based Allot reported third-quarter revenue of $27.77 million, short of the $27.87 million average estimate of 10 analysts surveyed by Bloomberg.
“The spreads should come back to historic norms,” John Gualy, a partner at Eagle Global Advisors LLC in Houston and portfolio manager for the Timothy Plan Israel Common Values Fund, which manages about $9 million, said by phone. “Ceragon has been struggling for a while and has taken a big plunge since July. Allot has sold off some from its highs but the longer-term opportunities are still there.”
Israel’s TA-25 Index (TA-25) rose 0.4 percent to 1,214.22 at 10:24 a.m. in Tel Aviv. The Bloomberg Israel-US 25 Index (ISRA25BN) of the largest New-York traded Israeli companies closed on Oct. 26 at 83.09 after falling for a third consecutive week…Read More>>