The Tel Aviv Stock Exchange (TASE: TASE) 特拉維夫證券交易所

29/7 buy TASE@15.55 for the following reasons

1. Low market capitalization (mktcap) in comparison with stock exchanges in other developed countries

a) low mktcap / turnover ratio

b) low mktcap / cash flows from operating activities ratio

2. Israel's economic structure and demographic

    hi-technology, research/innovation based economy

    Strong science and technology sector (e.g. Pharmaceutical industry)

    high literacy rate

3. from private to public 

    expect a more efficient business

Issues for follow-up

1) low participation of the Israeli public in equities market due to capital gain tax and preference in other types of investments (property and other financial investments)

2) high-tech companies prefer venture capital rather than listing

3) Gross profit margin: 2019: 5.4% (2018: 22.3%*; 2017: (4.6%))

*excluding one-off gain in reversal of impairment

Stock exchange generally has high operating leverage

TASE has not generated enough turnover (too few listed companies on the board) to reduce the margin cost per each turnover (which justify the high P/E)