Oberweis Duo Picks PetMed
10/17/2003 12:00 am EST
"Twenty-seven years ago we began a model portfolio; it has since exceeded our expectations by establishing a compounded rate of return of 25.2% compared to 11.6% for the NASDAQ," says the father and son team of Jim Oberweis Jr. and Sr. "The current year’s gain of 84.7% would make this our third best ever." Here's a new addition to the portfolio.
"Interestingly, one might assume that such gigantic leaps should be followed by corrections," says Jim Oberweis in regards to the recent strong performance of their portfolios. "However, the historical record does not support such a hypothesis. Indeed, there appears to be little correlation between the return of an excellent year and that of the next. Most importantly, the lesson from our long-term record is that, although year-by-year results can be volatile, disciplined investors who remain fully invested have historically achieved an exceptional average rate of return over long periods of time.
"PetMed Express (PETS NASDAQ) was founded in 1996 and is today America’s largest pet pharmacy, delivering prescription and non-prescription pet medications along with health and nutritional supplements at substantial savings, direct to the consumer. The company’s products are available through the PetMed Express catalog, customer service representatives by phone or fax, and over the Internet through their Web site at www.1800PetMeds.com. Sales in the most recent first quarter rose 105% to $30.4 million from $14.8 million in the same year-ago quarter. The company attributed the increase in sales to increased advertising and increased retail reorders, along with the free shipping promotion initiated in March of 2003. Earnings per share grew to $.06 versus $.04 in the year-ago first quarter. Clients of Oberweis Asset Management own approximately 670,000 shares. These shares may be appropriate for risk-oriented investors."