Radvision Working Off the Cramer Mojo (RVSN)

These days there are all kinds of gurus floating around, recommending all kinds of stocks and all sorts of methods. The most famous of these is without doubt the controversial James J. Cramer, co-founder of New York-based financial news website TheStreet.com., who went one stage further last year, with the launch of his new program “Mad Money” on CNBC television. One of the Israeli companies that Cramer recommended, and which jumped as a result, is Radvision (Nasdaq: RVSN).

Last fall, he learned that it had signed a major contract with telecommunications equipment provider Cisco Corp (Nasdaq: CSCO), which supplies US forces in Iraq with video conference call systems for commanders on armored vehicles, enabling them to communicate with each other and with their command bases, and also, with families of soldiers back home in the US. Radvision is Cisco’s sub-contractor on this project, and Cramer is right when he says that video conferencing is the future of all internal and external enterprise communications. I too think that Radvision has a great future in this field because it has the basic technologies.

In the meantime, Radvision’s management has made every attempt to assure us that the stock’s recent fall was merely a buy opportunity. Several week ago, chairman Zohar Zisapel acquired several million dollars worth of shares on the free market, and last week, the company applied to the courts (in accordance with Israeli companies law) for a permit to spend $30 million of its $100 million cash pile on a share buy-back.

Published by Globes [online], Israel business news - www.globes.co.il - on June 20, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006. Republished on Seeking Alpha with full permission.