Oberweis' Two Techs
06/16/2006 12:00 am EST
"The US market is beginning to look like a bargain," says small-cap specialist Jim Oberweis. "Within our universe, stocks haven't appeared this cheap in a long time. Indeed, we've seen relative valuations like this only on a few occasions in five years." Here, he looks at two techs.
"Baidu.com (BIDU NASDAQ) is the leading Chinese language Internet search provider and is the most frequently used search engine in China (competitors include Google (GOOG) and Yahoo! China (YHOO) and the fourth most frequently used in the world. The company’s Baidu.com website is the highest Internet traffic site in China and indexes over one billion Internet pages.
"Baidu’s services are designed to enable Internet search users to find relevant information online. The company is positioned to benefit from the explosive growth of the Internet in China, where Internet users are expected to more than double from 111 million in 2005 to 232 million by 2010.
"In the company’s latest reported first quarter, sales increased approximately 208% to $15.9 million from $5.2 million in the first quarter of 2005. Baidu.com reported earnings per share of $.16 in the latest reported first quarter versus $.04 in the same quarter of last year. Clients of Oberweis Asset Management own approximately 265,000 shares. These shares may be appropriate for risk oriented investors.
"Redback Networks (RBAK NASDAQ), a leading provider of next-generation broadband networking equipment, enables carriers and service providers to build Smart Broadband Networks that are personalized, adaptive, and efficient. The Smart Broadband Network provides advanced IP –based subscriber services to consumers, businesses and wholesale customers.
"The company’s carrier-class, scalable SmartEdge(R) product family combines carrier class edge routing, advanced subscriber management and high density Ethernet aggregation functions. In conjunction with the NetOp(TM) Element and Policy Manager platforms, the SmartEdge family provides a powerful and flexible infrastructure solution that enables delivery of next-generation Broadband IP services.
"In the latest reported quarter, the Company reported revenue growth of 69% to $57.9 million versus $34.3 million in the year ago first quarter. Earnings grew to $0.05 versus $(0.05) in the same period a year ago. Clients of Oberweis Asset Management, Inc. own approximately 823,000 shares. These shares may be appropriate for risk oriented investors."