Oberweis: Medical Momentum

11/22/2002 12:00 am EST


James Oberweis

President, Oberweis Asset Management, Inc.

Jim Oberweis uses a proprietary system based on eight criteria, seeking to identify rapidly growing companies that are increasing revenues and earnings by at least 30% each year. Says Oberweis, "Generally, we only invest in a company if its price/earnings ratio is less than one-half of its growth rate in order to combine the best features of both growth and value investing." Two of the latest buys from The Oberweis Report are in the healthcare sector.

"American Healthways (AMHC NASDAQ) is the nation's leading and largest provider of specialized, comprehensive care enhancement and disease management services to hospitals, physicians, and health plans. The company operates diabetes management programs in nearly 80 hospitals nationwide. They are the first and only care enhancement provider in the nation to be accredited by both the National Committee on Quality Assurance and the American Accreditation Healthcare Commission. Revenues for the most recent fiscal fourth-quarter were $38.2 million, a jump of approximately 15%. Earnings per share were $0.24, up over 200% from the year-ago quarter.

"American Bio Medica (ABMC NASDAQ) develops and markets inexpensive, accurate, onsite drugs-of-abuse diagnostic kits and support services worldwide. The company's primary products include the Rapid Drug Screen, a patented, onsite test kit that detects the presence or absence of drugs of abuse (cocaine, marijuana, etc.) in a urine specimen within five minutes. American Bio Medica was recently named among the 2002 Deloitte & Touche Technology Fast 500, a listing of the fastest-growing technology companies in North America. Revenues in the most recent third quarter grew to $3 million, a jump of approximately 100% over revenues in the same year-ago quarter. Earnings per share were $0.02 vs. a slight loss in the third quarter of 2001."

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