Jim Oberweis recently completed a 26-year overview of his model portfolio. Although it is down this year in line with the markets, the portfolio still shows a compound rate of return of 22.5% compared to 8.1% for the Dow and 10.4% for the NASDAQ. He maintains a positive long-term outlook and is particularly optimistic on the prospects for specialty medical companies. Here are two recent buy recommendations.
“Nobody knows for sure what the future will bring, but it would be unprecedented for the present bearish environment to persist much longer. In short, we feel that the potential rewards for being aggressive right now are better than we have seen in many years.
“American Pharmaceutical Partners (APPX NYSE) is a specialty drug company that develops, manufactures, and markets injectable pharmaceutical products, focusing on oncology, anti-infective, and critical care markets. One of the largest producers of injectables, the company produces more than 100 generic products in over 300 dosages and formulations. It has licensed and acquired the exclusive right to manufacture and market ABI-007, a proprietary injectable oncology product, currently in advanced clinical trials and being studied in a variety of cancers. Total revenues for the most recent second quarter rose approximately 44% to $69.0 million, compared with $48.1 million in the same quarter a year ago. EPS rose to $0.21 compared with $0.09 in the comparable period last year. We note that clients of Oberweis Asset Management own approximately 55,000 shares. These shares may be appropriate for risk-oriented investors.
“Dynacq International (DYII NYSE) provides surgical healthcare services and related ancillary services through surgical hospital facilities and outpatient surgical centers. The company provides home infusion healthcare, which involves the administration of physician-prescribed nutrients, antibiotics, and other medications to patients in their homes. Dynacq's goal is to create surgical facilities that are models of efficiency, technology, and clinical talent and skills which maximize profitability and patient care. Revenues for the most recent third quarter were $19.6 million, up approximately 54% from the same period a year ago. EPS for the third quarter increased by 42% to $0.27 vs. $0.19 for the corresponding quarter of the previous year. Clients of Oberweis Asset Management own approximately 50,000 shares. These shares may be appropriate for risk-oriented investors.”