Small Cap Favorites from Oberweis
12/13/2002 12:00 am EST
"We believe it is an excellent time to be adding to one's small stock portfolio," says Jim Oberweis, editor of The Oberweis Report. "There are few trends more consistent than the tendency of small-cap stocks to do well in periods following recessions. Small-caps may be hit hardest in recessions, but they also tend to bounce back much faster once the economy begins to expand." Here are two current favorites:
"Able Laboratories (ABRX NASDAQ) is a rapidly growing developer of generic pharmaceuticals for the treatment of various ailments including tension headaches, anxiety disorders, arthritis, and obesity. The company focuses on drugs with limited or no competition, as well as products with extended release dosage forms, which are more difficult to develop. After a successful turnaround, the company's stock recently commenced trading on the NASDAQ SmallCap Market after trading on the OTC Bulletin Board. Revenues for the 3rd quarter ended Sept. 30 grew to $15 million, an increase of nearly 200%.
"Biosite (BSTE NASDAQ) provides rapid, accurate, and cost-effective diagnostic products that improve a physician's ability to diagnose debilitating and life-threatening diseases. The company's first product, the Triage Panel for Drugs of Abuse, is a small self-contained test used by over 45% of US hospitals and emergency departments. The test, which takes approximately ten minutes to complete, is designed to detect a broad spectrum of commonly overdosed prescription and illicit drugs. Revenues for the most recent third quarter were $28.9 million, up 70%. Earnings also grew over 70%. These shares may be appropriate for risk-oriented investors."