The Wall Street Journal loves to poke fun at corporate execs living large on the lam. Kobi Alexander, Comverse’s (CMVT) Namibian-dwelling ex-CEO, is not spared any ribbing in today’s Page 1 of the WSJ (sub. required).

Seems that Mr Alexander put on a lavish bar mitzvah party for his son recently which included flying in over 200 guests from Israel and the U.S. and a gala performance by a IOI’s Aaron Katsman’s favorite hip-hop group, Subliminal.

Well, beyond spending his riches pampering his son, Alexander continues to pour money into Namibia, a country without an extradition treaty with the U.S. Wanted in the U.S. on stock-options backdating charges, Alexander fled with his family in July 2006 and has been fighting extradition ever since. According to the WSJ article, “He and his wife, Hana, announced an annual $20,000 scholarship award for Namibia’s top 80 science and technology students in grades 10 and 12. Known as the “Kobi and Hana Alexander Prize of Excellence,” the couple has funded it for five years.” He’s also investing in local real estate projects.

Beyond all the largesse and the issue of whether all this money is well-spent on a 13 year old’s party, we’d like to suggest 3 better uses for Alexander’s spending habits.

1. Buy CMVT stock: We’ve written copiously about investing in CMVT. With its underlying business holding its own, its holding company structure with investments in top security play, Verint (VRNT), and its ultimate relisting of its stock on the Nasdaq off the pink sheets, Alexander might want to consider doubling-down on his alma matter instead of throwing lavish parties.
2. Short the shekel: after a fast and furious run up in the shekel/dollar rate, we’ve seen things swing back in the other direction recently. Perhaps Alexander would like to diversify out of his Israeli holdings and go long the dollar (in the bank accounts that haven’t been frozen by the Feds).
3. Diversify his CMVT holdings into a new Israeli ETF: Northern Trust recently launched its NETS group of ETFs with a product that comes closest to providing U.S. investors with real exposure to the local Israeli economy. The NETS™ TA-25 Index Fund (NYSE: TAV) tries to replicate the Tel Aviv Stock Exchange’s TASE-25.

Don’t get me wrong. I totally believe in celebrating family occasions and giving back to the kids. I just think a religious ceremony should be valued for what it is — the rest can go in a trust fund.

Disclaimer: Author holds CMVT personally.

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Zack Miller is the editor of the Israel Opportunity Investor newsletter and a former equity analyst for a leading multinational hedge fund. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email zack@israelnewsletter.com

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