Measured moves ahead: most black-owned stocks gained ground in the first half of the decade.

The stock prices of black-owned, publicly traded companies have generally improved in the last four years, but some of these companies have suffered major setbacks and their stock has subsequently fallen off its respective index.

From July 1, 2001, to July 1, 2005, the companies that make up the BLACK ENTERPRISE Black Stock Index (go to www.black enterprise.com) had a portfolio performance of 35.79%. The Dow Jones Industrial Average fell 2.08% and the S&P 500 Index slipped 1.39% during the same period.

Some of the best performances by black stocks were in the banking and healthcare sectors. The stock price of American Shared Hospital Services (AMEX: AMS), a San Francisco-based healthcare company, rose from $4.20 in July 2004 to $6.02 this July. When BE last wrote about the Black Stock Index in 2001, AMS was trading at around $2.65.

American Shared Hospital Services generates almost all of its profit from providing hospitals with the Gamma Knife, an instrument used to treat arteriovenous malfunctions (which involve the body's circulatory system) and certain brain tumors without making an incision. The company's revenues inched up 1.3% to $16,389 in 2004 from $16,178 in 2003. But during the last three years, revenues have grown more than 10%, largely due to the placement of the Gamma Knife in more medical centers in 2002 and 2003.

United American Healthcare Corp. (NASDAQ: UAHC), a Detroit-based healthcare company that provides healthcare management and consulting services, is still bouncing back from a major drop in revenues--from $178 million in 2002 to $22.6 million in 2003. Its net income, however, improved drastically, from a loss of $11 million in 2002 to a net gain of $5.2 in 2003. United American's 2002 drop in revenues and rise in income was due to its amended contract with TennCare, the state of Tennessee's healthcare plan, which resulted in United American losing $155 million in revenues but reducing its operating expenses. The company also terminated a management agreement with OmniCare-MI in 2002. United American anticipates 2005 revenues to be in the range of $21 million to $23 million.

Black-owned, publicly traded banks have made a lot of noise as well. In late 2004, New York City-based Carver Federal Savings, which is held by Carver Bancorp Inc. (AMEX: CNY), made an attempt to acquire Washington, D.C.-based Independence Federal Savings, another black-owned, publicly traded financial institution, but the deal fell through. The Office of Thrift Supervision ultimately disapproved of the transaction. The stock prices of the two banks took a hit after the deal proved unsuccessful. Around the time of the deal, both Carver and Independence were trading as high as $20.57 and $20.60, respectively. In May, however, Carver was trading at $17.55 and Independence was going for about $10.00.

Broadway Financial Corp. (NASDAQ: BYFC) offers a $0.05 quarterly dividend and was selling at $10.35 per share in July. The Los Angeles-based bank's earnings per share was $0.99 last year, up from $0.77 per share in 2003. And since executing a 2-for-1 stock split in December 2002, the stock has shown steady growth. Broadway Financial's 52-week high was $13.94, and it was trading at $10.35 in July.

Tumultuous times in broadcasting brought the stocks of radio and television companies spiraling down. Granite Broadcasting Corp. (OTCBB: GBTVK.OB), which owns and operates, or provides programming, sales, and other services to 13 television stations throughout the country, was delisted from the NASDAQ SmallCap in August because its market value fell to an unacceptable low. Its stock price started to fall in 2001 after CEO Don Cornwell offered NBC some $360 million for 10 years in exchange for his San Jose-based KNTV becoming an NBC affiliate.

Granite's station portfolio includes NBC, ABC, CBS, and two major market WB affiliates. Now trading on the Over the Counter Bulletin Board (OTCBB), its stock hovered at around $0.21 in July. In July 2001 it was trading at $2.75

Once the pearl of black-owned, publicly traded companies, Radio One Inc. (NASDAQ: ROIA) has watched its stock lose ground recently. Down 19.94% from last year, ROIA was selling at around $12.81 in July. The company, which ovals and operates 69 radio stations in 22 of the top 53 African American markets nationwide, most recently added the Tom Joyner Morning Show to its station programming. Company revenues rose 5.48% last year, from $303 million to $319 million.

Michael Corty, an analyst with mutual fund company Morningstar Inc., theorizes that this down period for Radio One could be related to a drop in the price of radio broadcasting stocks as a group in the last 18 months. "Weaker growth prospects for radio broadcasting companies in the last few years may have made investors more negative about those stocks," says Corty.

Unfortunately, there are three black-owned, publicly traded companies that will no longer be listed on the BE Black Stock Index: DME Interactive Holdings Inc. (OTCPK: DGMF), Caraco Pharmaceutical Laboratories Ltd. (AMEX: CPD), and eChapman Inc. (OTCPK: ECMN). Caraco sold a controlling 63% interest in its enterprise to India's Sun Pharmaceuticals. Nathan Chapman, CEO of eChapman, was convicted of defrauding a state pension fund in 2004. His company's stock has been trading for less than $1 since January 2002 and was delisted by the NASDAQ stock exchange later that year. DME's Website and software development company hasn't been able to bounce back since founder Darien Dash trumpeted a potential deal with America Online back in 2001. The deal never came to fruition and Dash has been laying low for the last few years. DME last traded for less than $0.05.

BLACK STOCKS AT A GLANCE

Current Value of $1,000 Investment From July 2001 to July 2005

AMERICAN SHARED HOSPITALS $1,967.32

BROADWAY FINANCIAL CORP. $1,892.14

CARVER BANCORP INC. $2,010.66

GRANITE BROADCASTING CORP. $76.36

RADIO ONE INC. $700.77

UNITED AMERICAN HEALTHCARE CORP. $1,500.00

Total Current Value of $6,000 Investment $8,147.25