In the past few years Israel has been moving more towards a cashless society in its efforts to make it more difficult for criminals to function, and to prevent money laundering. The entire Western world is moving in that direction, and Israel has been going with it. A couple of years ago Israel passed a law to limit the size of business transactions allowed to be conducted with cash. Israel wants to be able to keep track of the flow of money, which it cannot do with cash.

A short while ago a law was proposed to minimize the use of cash in the market, thus giving the authorities more control over issues like money laundering and the like. This is a trend happening in governments around the world.

That law proposal passed last night.

cash is, officially, no longer king.

The law will go into effect on January 1, 2019, and it will apply equally to open checks 6 months later on June 1, 2019, as these checks have many similarities to cash.

Some of the details of the new law:

• Breaking the new law and using cash or check above the limitations will be forgiven for the first 9 months after the law goes into effect, to give the public time to acclimate to the new rules
• any transaction worth more than 11,000nis for a business or 50,000nis for private - cannot be paid in cash, even partially.
• using cash to pay salaries, donations, gifts or loans: if the transaction is worth more than 11,000nis with no family relation, or 50,000nis with family relation, cash is out, even for part of the arrangement.
• open checks and third party checks are not to be used. The bank will not accept checks that are open, or third party checks with sums greater than 10,000nis that have already been transferred through more than one party unless all the names and id numbers are listed on the check.
• businesses violating the law will suffer financial sanctions. Private individuals will receive criminal fines.

The law passed its final readings in Knesset 49-9.
source: Haredim10

I am not sure how they will enforce this, at least at a private level. Businesses seem easier, via the tax authorities and audits, but private donations or gifts can easily be split up into multiple donations, each being under the limit. Maybe if they discover  multiple donations or gifts at just under 11k within a certain time frame they will consider it a violation.

Israel, General Mills, and Your Money

A Guest Post by Dr Harold Goldmeier

This summary article is about business in Israel. Read the full article here: https://www.gurufocus.com/news/1832439/why-general-mills-is-a-fulfilling-investment. People ask me my opinion when I speak to community and business groups how they can best help Israel and participate in the growth of the startup nation? Always consult your broker, lawyer, and accountant before making investments. Visit GuruFocus.com for the original article.

Disclaimer: Please be advised that neither the author or Life in Israel, its affiliates, its employees or agents accept liability for any errors, omissions or damages caused by this communication or its attachments, or which may otherwise arise as a result of this communication transmission. Dr. Harold Goldmeier, Business Teacher and Consultant  

 

·         General Mills says ending a joint manufacturing venture in Israel was a business decision, not a boycott. A slew of products is in stores across the country.

·         General Mills could be a value opportunity despite trading near its 52-week high.

·         The nature of the business and the hallmark dividend could provide stability amid uncertainty.

Slow, steady, safe

Not every decision is political though it seems that way because of Israelis’ existential angst. 

A company representative emphatically claims, “We continue to sell our products in

Israel and look forward to continuing to serve Israeli consumers with our other brand.” Nor is it wise for investors to let politics sway investment decisions. A slew of GIS products is in stores across the country.

 

General Mills Inc. (GIS, Financial) might seem a bit richly valued now that the stock trades near its 52-week high. Yet, in my opinion, General Mills has the potential rise another 10% higher. By the end of the new fiscal year, my price target for this stock is in the $82 to $85 range. This is because of the combination of the food industry's defensive nature and General Mills' solid dividend.

 

 

 

Food industry stocks are one of the best consumer defensive investments in a volatile market. The S&P Food and Beverage Select Industry Index was steady from the pandemic outbreak through this month.

General Mills in particular did well. General Mills' shares are up 22.5% over the last 12 months. They rose 35.5% in the past five years. The price-earnings ratio of 18.35 is lower than the average of 21 for its broader industry, although it is higher than the average of 15 in the food products group. Its Beta rating is 0.15. Short interest is a scant 2.22%.

Inflation and any remaining bumps in the supply chain might cause a 1% to 2% slip in profit in the new fiscal year’s first and second quarters. Anticipated sales increases of 4% to 5% should offset pressures on margins and profits.

Great company packaging

General Mills manufactures, markets and distributes name brands of baking products, cereals, dough and pastries, fruit, ice cream, prepared meals, organic and natural foods, pet foods and pizza. Its products sell in over 100 countries across six continents.

Cereals are the core business. Fruit bars, health bars and snacks are among its fastest-growing targeted segments. The company points out its heat and eat breakfast sandwiches as fast growers for their convenience and competition with fast-food restaurants.

Finances are stable

In May, the company reported that its diluted earnings per share for the quarter increased 98%, or 23% in constant currency, to $1.12. Net sales increased 5% for the year. Organic sales for the quarter were 13% higher. Operating profit for the full fiscal year was up 11%. Fiscal fourth quarter operating profit rose 85% to $1 billion. Operating cash flow grew 11%.

The pet foods segment of General Mills had 20% to 30% sales growth, compounded by the July 2021 purchase of pet treat brands. In the fourth quarter, net pet food sales grew 37% year-over-year to $610 million.

General Mills has historically used debt to finance growth and pay solid dividends. Its debt-to-equity ratio is 1.22. The company has been reducing debt, but with its enormous market cap, it is unlikely to have trouble borrowing money. The debt has been falling for five consecutive years.

Valuation

The GF Score for General Mills is 78 out of 100. Though highly profitable (8/10), the value rank is minimal (3/10). Momentum is moderate (6/10). Its growth rank just 6/10.

Corporate insiders sold almost one million shares as the price increased. Meanwhile, hedge funds increased their holdings in each of the last three quarters. They added 385.7 thousand shares in the fourth quarter alone. General Mills pays an attractive 2.78% forward dividend yield, which I believe adds greatly to the value proposition.

Commitment to shareholders

I like General Mills as an investment opportunity. The company’s products are sold almost everywhere in Israel. It also commits to business sustainability making its packaging eco-friendly and targeting zero waste and carbon footprint. GIS has upward potential, pays a good dividend, and is financially sound.

 

 

Ever hear of the Nigerian email scam? If you have been using email anytime over the past 13 years or so, how could you not be familiar with it?

Jameel just forwarded to me the latest, most recent take-off of the Nigerian email scam.


---------- Forwarded message ----------

(of course, Turban Tip to Jameel)

The "cash cow" that is the business of going abroad to "shnorr" donations might be coming to an end.

It might be good for some people - those who complain about being bombarded in shul in every major city with a Jewish community in the USA and Europe, and it might be bad for others - those who rely on it for their organizations and institutions or their personal needs, or it might be bad for everyone - those who give even though they complain might lose a tzedaka opportunity that literally comes right to them (though there will always still be plenty of local opportunities wherever they are)...

The director of the Tax Authority, Moshe Asher, said, not specifically about the "shnorrers", you have a person who travels 10 times a year, but by us he registered as earning minimum wage. Or, a person who has four apartments and does not report the rental income he brings in from them - and according to reports submitted he earns less than minimum wage.

Asher says the tax authority is working to identify the people who should be submitting reports as to their true income but are not. Based on many new parameters being taken into account, tens of thousands of possible tax evasion situations are being discovered, Asher said. People will soon begin receiving letters informing them to submit reports, and taxes will be collected for years that they were not paid.
source: The Marker

Kikar has taken Asher's words and concluded that the industry of shnorrers is now at risk.

Kikar spoke to a couple of people who are worried about the report and think it might affect them.

One person said he travels 12 times a year but barely makes a living, and has a very low salary. This person runs a chessed organization. He says he would have to start filing detailed reports of each trip, how much was spent, how much was collected, etc. - he says "[the organizations] are barely getting by as it is with the donations being down and the subsidies being cut, and now to add the requirement for reporting and bureaucracy?"

Another person said he travels for personal needs several times each year. He says shnorring might not be a respectable profession, but for many in the haredi community it is a basic need for subsistence. He says people in the community make do with the minimum because they dedicate their lives to Torah and spirituality and there are social pressures, such as marrying off kids, that require people to travel abroad frequently. He says he lives hand to motuh and is in debt just so that he can marry off his kids... he lives off his kollel stipend, and everything he collects goes to his kids and family, and now, half would go to the tax authorities. he wants the askanim of the haredi community to fight and prevent this.

I feel bad for them. it is tough going through such a major change, that will require serious change in the entire system, and might hurt a lot of people. However, this collecting of money and not reporting it is no different than any business. Nobody wants to pay taxes. People work hard for their money. There is no reason to expect that a business should have to pay a lot of money in taxes but other people should not.

As long as they were able to get away with it, more power to them. I dont think people should choose to live their lives lechatchila looking for handouts, but if thats what they choose and they can find a way to do it without being obligated to pay taxes or if they think they do not need to, that is their choice, their business. But I do not think it is wrong for the government to change the system. Until now they got away with it, because it was not regulated properly, but really they are no different than anyone else. Your average employee is living from paycheck to paycheck as well, many living in the red - that is not a reason to demand that the State let them not pay taxes. Obviously people will have to pay at the tax rate based on the income - if he is making such a small amount of money, as he claims, he will pay less taxes.

I feel bad for them, but I am not impressed with the complaint.

The victim of last week's utterly evil missile attack on a school bus, is local Bet Shemesh/RBS resident Daniel Viflic, aged 16.

I've never understood why waiters and waitresses do not get paid salaries, and have to survive on tips instead. Why are they different than any other employee in a western country?

Obviously a salary would also come out of the customer's pockets, in the form of higher prices, but overall I'd probably be happy to know how much my dinner actually costs and not have to decide on a tip when I am finished eating. Regardless of me, the customer, waiters and waitresses need to be treated properly as employees, with minimum wage guaranteed, with benefits, and with the responsibility of paying taxes. Like any other employee.

Another thing I always wondered about is cleaning ladies. Cleaning ladies is another industry that is mostly a cash business. They do not pay taxes, they do not get benefits. Yet, with cleaning ladies it has become well known that you are actually obligated to be paying them bituach leumi money in addition to the salary you pay them. Even if they do not bother filing taxes and reporting their income, they can, and sometimes do, sue later for the bituach leumi money. They should be salaried employees or registered freelances. They should have to pay taxes on their income. They should have to pay their own bituach leumi, just like any registered freelancer does. Or they should be employees, with taxes deducted, with minimum wage, with benefits, with bituach leumi, and whatever else it entails.

MK Dov Henin (Hadash) has proposed a law that would at least deal with the waiters and waitresses. Henin's law would require restaurant owners to pay waiters and waitresses [at least] minimum wage, and not count the tips as or towards their salary.

Studies show that waiters and waitresses generally get paid less than minimum wage and receive no social benefits.
source: Jpost

It's a good start. Pay the waiters. Pay the waitresses. Treat them like human beings working for a living.

A guest post by Dr. Harold Goldmeier




-------------------------------------------------------------
Donate to the Schneider Hospital so I can run the Schneider benefit marathon..

Logging into my bank account online recently has the following message popping up warning me of  upcoming changes in the bank..


The warning says that as of March 14, 2018, my branch (Hapoalim in RBS) will be converted to a branch  holding no cash and no clerk services. From that date and on, all relevant services will be provided via the self-service machines. Other direct channels to the bank, such as via Internet, telephone, and app, will continue to function and be available. When necessary, bank branch 692 (the central Bet Shemesh branch located in downtown Bet Shemesh) will be available for all clerical services.

This is a trend happening in all the bank chains all over Israel. They are closing and/or merging branches in order to consolidate and save money.

Personally, I hate going into the bank and avoid it as much as possible. I use the machines to deposit checks,  as I get a lot of these through my business, and I use the online services. The only time I go into the bank is if I am sent a notice that I need to come in and pick up a problematic check that I deposited, or if they tell me I need to come in to sign something. Once every few years I also need to renew my credit cards.

The biggest problem I see with this is that half the times the various self-service machines are not functioning properly. Currently, they can be fixed or rebooted relatively quickly (not including Saturday nights and Sundays when the branch is closed), as I or someone else can go into the bank and let them know, but with no actual bank behind it with real people talking to customers, I can see it taking longer to get the machines fixed. Maybe they will keep a small branch open with some services still provided by clerks, such as mortgage services and the like, and that will keep bank people nearby.

Additionally, with everyone needing personal service in the entire city going to one branch, that place will be packed and will be impossible to use.

Another point is that closing a branch in lieu of online services in a largely Haredi neighborhood seems like a bad idea. While many/most people do have Internet and app access, many do not and they need the in-bank services for a lot of what they do.

I get why they are doing this but I don't like it, even though I don't like going into the bank anyway.

UPDATE: to clarify, the bank branch is not closing but they are putting an end to cash services. There will be no tellers for deposits and withdrawals. Other clerks and the various services they provide will still be functioning as they have until now

Lema'an Achai does not cry "Wolf".

Unfortunately, when Lema'an Achai has troubles, the most needy members of our community pay a terrible price.

Two years ago, when the stock markets crashed around the world, and an international economic crisis of then-unknown proportions shook every community and household around the world - Lema'an Achai's cash-flow projections suddenly became unrealistic. We faced the choice of making deep cuts in the number of impoverished families we help, or...well.. asking you for help.

We publicly explained the situation, and our supporters made incredible and selfless efforts to help us through that dark period.

We have not made any emergency appeals since then. Although the economic crisis is beyond that grim shock-point two years ago, it has continued to impact us.

Many local families who were entirely self-sufficient, have taken a severe blow. Unemployment, difficulties obtaining payments, spiraling debt, have hit the managing-ok-classes. Lema'an Achai therefore has more families calling for help than ever before. And many of the families now needing help, were once donors.

Friends, here's where we stand...

Lema'an Achai is 'leaking' at between 10-20% each month.
Which is to say, our approved 2010 budget has been leaping ahead of our actual fundraising/revenue.
Lema'an Achai has squirreled away a small reserve - which is now largely used up.

We are now faced with heart-wrenching decisions.

What to cut?

Every single family which receives help from Lem'an Achai desperately needs it. They are usually earning just 10% BELOW the (already dismally low) Israeli poverty line. These families lack food, clothes, utilities and shelter. They often have other multifaceted problems, for which Lema'an Achai is their one-stop-shop giving support and solutions.

Lema'an Achai is not solely in the hand-out business; our comprehensive aid and services includes long term planning with families. Fifty-nine families are currently participating in courses to up-grade their employment and earnings potential. Many other families are receiving critical therapy and financial & business development counseling, which cannot be simply stopped mid-way.

With one hundred and eighty families (over A THOUSAND local residents) currently obtaining our aid and unique Smart-Chesed support from Lema'an Achai - and more requests coming through weekly - we now need to tell around 30 families (nearly two hundred residents) that,
tragically, we cannot help them any further. No supplies of food, or assistance with utilities and other critical bills; and no more support to get through today's crisis or planning to avoid tomorrow's crisis.

No Help - and no Hope.

Before we do that, we are making this last-ditch appeal for your help.

We know that you already give generously to many wonderful causes.

We are asking that you now do even more.

Here's how:-

1. Buy some raffle tickets. For details: www.SmartChesed.org. (There, that was easy).

2. Take a deep breath, and make an exceptional one-time generous donation, to help us over this hump.

3. Sign up for a regular commitment. You know your projected earnings, Be"H, and can already calculate your ongoing maaser kesafim obligations. So, please make a horaat kevah or credit card ongoing commitment to Lema'an Achai.

4. Sponsor a Lema'an Achai program - we have almost 30 innovative programs, and several of these are still available to be named after a special person, in their honor or in their memory. Who do you know who merits the honor of an ongoing chesed program, in their name?

5. Any other ideas?! If you could help with fundraising ventures, please step forward. We have some great ideas, and I'm sure you do too. We need people to step up to the plate, and help implement these plans, hands-on.

Click on this link to make a donation (or ongoing commitment) now:
https://lemaanachai.org/donations.aspx
Call our 24/6 Donations Line: 02-99999.33
Or send your check to: Lema'an Achai, 40/7 Nahal Lachish, Ramat Bet
Shemesh, 99093, Israel.

You are welcome to send this on, with your personal recommendations, to your friends and family members, who could be interested to support Lema'an Achai, "the Jewel in the Crown of Ramat Bet Shemesh".

Tizku Lemitzvot,
David & Avrohom

I don't really understand how this will work but Minister of Transportation Yisrael Katz announced a reform of the public transportation system. Katz says that the shared taxi system (moniyot sheirut - where a taxi van fills up with ten passengers that share the ride from city to city. in the Gush Dan area there are also such shared taxis that drive along the local bus routes picking up and letting off passengers along the route at a price similar to that of the bus) will be added to the public transportation system and passengers will be able to use their "rav kav" cards in taxis as well, and it will work on Shabbos as well.

According to Katz this will make public transportation cheaper and will also prevent the shared taxi system form closing down, as has recently been threatened by a decrease in business. These shared taxis will be able to work on Shabbos, and their "weekend" business will grow, the there will be no use of the rav kav on Shabbos - passengers will have to pay cash. According to Katz, not allowing use of the rav kav on Shabbos will avoid breaking the status quo.
source: Kipa and Kikar

I guess technically it is not a breech in the status quo because of the lack of use of the rav kav, but it seems to me to only be cosmetic, as really it is the government allowing and encouraging more public transportation. If all they care about is how it looks cosmetically, than I guess this will not be a problem.

There might be plenty wrong with the Rabbanut that needs to be reformed, but this Ynetnews op-ed by Yizhar Hess looks to be nothing but a hatchet job.

Basically, they are upset the wedding halls under the Rabbanut require wine to be either mevushal (cooked, pasteurized) or served by religious Jews (article refers specifically to some sort of a scam where one can pay the Rabbanut extra to send its own wine servers who are yeshiva students in need of some extra money).

The rabbinic prohibition against "secular Jews" pouring wine is a real prohibition, not made up by the Rabbanut as Hess claims in his op-ed. That being said, there are many leniencies and qualifications that can be applied - if the person is not entirely secular but keeps some mitzvos, if he is called a "tinok she'nishba", and others. When they can be used, how they can be used, are all matters up for debate and discussion.

And, that being said, if a mashgiach or if the Rabbanut is running a scam by which he gets his friends some cash-paying jobs and has a way to charge the family more money in the process, that needs to be stopped. Some official process must be in place for these situations.

From Ynetnews:

Rinat and Tom are going to get married this winter. They’ve been living together for three years and all of a sudden they decided that they had to get married right away. (Yes, I asked Rinat if she was pregnant and the answer was no, but she added a "smiley face" to her note, so who knows).
Be that as it may, a winter wedding is a challenge. They had dreamed of having a small wedding, but their families were pressuring them to have a more conventional affair, with the fancy hors d’oeuvres and full course meal.
The problem is that the fancy places operate only in the summer. In the winter, if you want a more glitzy kind of hall, they were warned, you have to hurry up and reserve it right away. So they’ve been running around like crazy these past few weeks, checking suitable venues.
"The food is your affair," they told their parents. "You can decide on the menu, but we’ll choose the alcohol. No need for you to bother about it, okay?" Even though they are students, they know about wine.
They found a hall, closed on the deal and, while talking over the menu, announced to the owner, with all due formality, that they would be bringing the wine on their own. Since the catering company has a kashrut certificate, they reassured the owner that they would be purchasing kosher wine, from a winery with supervision by the Chief Rabbinate, not the Conservative Movement, God forbid.
"Ah, but that’s not quite all there is to it," the wedding hall owner stammered, averting their gaze. He had had similar conversations with other couples, and he knew that it would be difficult to explain. "The Rabbinate has new regulations," he said. "Because my waiters and barmen are not Shabbat observant, I am only permitted to serve yayin mevushal (pasteurized wine)."
"What?" exclaimed the astonished Rinat and Tom.

You don’t need to be a sommelier to know that wine that has been pasteurized tastes like a pita that has been defrosted in a microwave oven. "But that’s the way it is," said the venue owner, "they have a monopoly."
The Orthodox interpretation of Halacha is very strict about the rules governing wine production. A non-Jew cannot take part in the process. Any winery that has been certified kosher by the Rabbinate is forbidden from employing non-Jews in any function whatsoever that requires coming into contact with the grapes, the barrels, and naturally, the wine itself.
Furthermore, Israel’s Rabbinate has added more stringent restrictions and ruled that Jews who do not observe the mitzvot are also considered non-Jews in this context, and are not permitted to touch the wine at any point during the production process. If they do, the winery will not be granted a kashrut certificate.
You could be a qualified, professional vintner at a winery such as Carmel Mizrachi or Recanati, circumcised and the son of a Jewish mother, who not only served in an elite IDF unit but also had a bar mitzvah, but if you are secular you cannot touch a single barrel of wine in your winery.
The supervisor (mashgiach) appointed by the Rabbinate will follow your every step, making sure that you do not touch anything, deliberately or unintentionally. If you want to taste the wine from one of the barrels – something that vintners do as a matter of course and as part of their professional duties – the mashgiach will have to pour it for you.
If you, the vintner or the winery owner, are secular, or a non-Jew, or both, it doesn’t really matter. You are simply disqualified. Racist? Arrogant? Nauseating? Indeed, but so what? Until this monopoly is challenged from without, why should any of this change?
Now the madness has filtered into the wedding hall industry.
You have two choices, the hall owner explained to Rinat and Tom. Either you serve yayin mevushal (wine that has been cooked, after which, according to Orthodox interpretation, even a Gentile or a secular Jew can serve it to your guests), or pay the Rabbinate to send barmen of their own (at a cost of a few hundred shekels each) and they will send trustworthy Jews, yeshiva students who want to make some money because the allowance they receive is insufficient. They will serve the wine at your affair.
Then, and only then, will you be permitted to serve kosher wine that is not pasteurized.
By the way, they are not so strict about this in the hotels, the hall owner explained, because they are backed by the strong hotel association lobby. But for us, the caterers and wedding hall owners, they have made the rules more stringent.
They also know that the wedding business is a money-making industry. And most of the couples pay, because who wants to serve cooked wine at their wedding?

As I said, the Rabbanut mashgichim should not be abusing their positions to squeeze some extra money out of wedding parties to give their buddies some quick cash jobs, but enforcing the halachos of wine supervision is entirely within the purview of their kashrut supervision.

A guest post by Dr. Harold Goldmeier