Small caps think big.Companies restructure operations to boost earnings It seems as if small caps are learning from their large cap cousins: restructure to expand market share and boost earnings. These lessons have not been lost on the companies that comprise the B.E. Black Stock Index. The following is a roundup of the recent activities of several of these firms: American Shared Hospital Services (AMEX AMEX See: American Stock Exchange : AMS AMS - Andrew Message System ): The medical devices firm recently sold its diagnostic imaging business for $14 million, and used a portion of the proceeds to repurchase 225,000 shares from GE Medical Systems. Analysts believe that growth will come from the growth of the concern's Gamma Knife units, which use radiosurgical equipment to cut tumors and treat vascular malfunctions. Since we reported on the index last October, AMS' stock has risen from $1.00 a share to $1.13 a share. Ault Inc.(Nasdaq: AULT): In late December, the Minneapolis-based maker of power conversion products acquired the power supply assets of LZR Electronics for $3 million, and produced gains from its sale of modems. Earnings for the first two fiscal quarters of 1999 grew to $938,000 or 22 cents a share, from $596,000 or 14 cents a share. Since last October, Ault's shares jumped more than 100%, from $4.06 to $7 a share. Carson Inc. (NYSE NYSE See: New York Stock Exchange : CIC CIC circulating immune complexes. CIC Circulating immune complexes. See Immune complexes. ): Since October, the Savannah, Georgia-based ethnic hair-care manufacturer has crowned a new CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Gregory J. Andrews, and developed a new attitude. Carson recently sold Cutex, the nail polish remover nail polish remover n → quitaesmalte m nail polish remover nail n → dissolvant m nail polish remover nail n , for $30 million so that it could "focus on the core ethnic market domestically and internationally." To further fuel expansion, Carson has borrowed $83 million in senior short-term loans. The share price dropped from $6 last October to $3 a share. United American Healthcare (NYSE: UAH UAH In currencies, this is the abbreviation for the Ukraine Hryvnia. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ): The health management company is in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of a turnaround. It has shut down its HMOs in Florida, Louisiana and Pennsylvania and substantially trimmed staff. It seeks to boost earnings and its abysmal stock price through a strategic alliance with Blue Cross/Blue Shield to serve as the joint health provider for the proposed MGM MGM in full Metro-Goldwyn-Mayer, Inc. U.S. corporation and film studio. It was formed when the film distributor Marcus Loew, who bought Metro Pictures in 1920, merged it with the Goldwyn production company in 1924 and with Louis B. Mayer Pictures in 1925. Grand casino in Detroit. The share price, however, is still a sick patient in need of a respirator respirator /res·pi·ra·tor/ (res´pi-ra?ter) ventilator (2). cuirass respirator see under ventilator. : it has dropped from $1.94 to $1.25.
B.E. Black Stock Watch
52-Week
Company Exchange: Symbol High Low
American Shared Hospital Services AMEX: AMS $2.00 $0.56
Ault Inc. Nasdaq: AULT 8.75 3.25
Broadway Financial Corp. Nasdaq: BYFC 13.25 6.75
Caraco Pharmaceutical Labs OTC-BB: CARA 1.75 0.44
Carson Inc. NYSE: CIC 10.75 1.50
Carver Bancorp AMEX: CNY 15.75 6.50
Chapman Holdings Nasdaq: CMAN 11.00 4.50
Granite Broadcasting Nasdaq: GBTVK 13.63 3.50
United American Healthcare NYSE: UAH 2.56 0.75
Current
Company Price(*) P/E EPS(**)
American Shared Hospital Services $1.13 4.66 $ 0.228
Ault Inc. 7.00 17.95 0.39
Broadway Financial Corp. 7.25 22.56 0.313
Caraco Pharmaceutical Labs 1.22 N/A N/A
Carson Inc. 3.00 4.23 0.724
Carver Bancorp 6.75 0 -2.308
Chapman Holdings 6.75 180.15 .034
Granite Broadcasting 6.75 0 -0.277
United American Healthcare 1.25 0 -3.66
(*) As of 2/8/99 (**) Earnings per share exclude extraordinary changes. Sources: DBC See dBA. (language, parallel) DBC - A data-parallel bit-serial C based on MPL. SRC, Bowie MD. E-mail: <maya@super.org>. Financial (www.dbc.com) and Yahoo Quotes (www.quote.yahoo.com) RELATED ARTICLE: ASSET ALLOCATION Three faces of risk Pierre Dunagan, managing partner of Dunagan, Robinson & Isbell Financial Services, a Chicago-based advisory firm, provided BE with asset allocation models for three distinct types of investors. The first one, between the ages of 21 and 34, is young enough to take an aggressive approach to investing. The second, age 35 to 50, wants to amass money during his or her peak earning years Peak earning years refers to the time in life when workers earn the most money per year. US perspective Given their initial lack of experience, workers' earnings start out low. Earnings peak when workers hit middle age, then begin to fall as retirement approaches. . And, the third, between the ages of 51 and 75, has developed a portfolio to provide the maximum amount of monthly income.-Carolyn M. Brown [GRAPH OMITTED]3 |
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