Marketocracy Bets on Medical Imaging

11/22/2002 12:00 am EST


Ken Kam

CEO, Marketocracy, Inc.

Marketocracy allows thousands of individuals to create and monitor their own mutual fund portfolios. The 100 best performing "fund mangers" are then compiled into the m100. From their buys and sells, Ken Kam manages an actual mutual fund, which has outperformed the S&P 500 by 13.6 percentage points over the past year. The latest top buy from the m100 is a biotech-imaging company.

"Analogic Corp. (ALOG NASDAQ) tops the buy list of the Marketocracy 100. The market hasn't been very kind to biotech issues this year as investors have dismissed the promise of future growth for current value. However, the top buy this week for the m100 was biotech small cap, Analogic, demonstrating that our top investors are still keeping an eye on tomorrow's growth.

"Analogic, a manufacturer of medical imaging and data acquisition systems, is already profitable with EBITDA of $16.2 million over the last 12 months. And though the company's p/e is north of 170, it is important to note that earnings in the most recent quarter were nearly five times larger than the same period a year ago. With earnings growing at such an aggressive clip, the P/E becomes a less meaningful measure, ill-equipped to value Analogic's future earnings growth potential."

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