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Small cap favorites from Oberweis


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 "While yearly results can be volatile, disciplined investors who remain invested in a portfolio of high-growth, small-cap equities can achieve an exceptional returns," notes Jim Oberweis, Jr.

Indeed, over the past 33 years, the model portfolio in his The Oberweis Report has generated a compound rate of return of 19.9%, vs. 7.2% for the S&P 500 Index (excluding dividends). Here, he reviews a trio of small cap favorites.

"Lincoln Educational Services (NASDAQ: LINC) is a for-profit provider of post-secondary education. The company offers recent high school graduates and working adults degree and diploma programs in health sciences, auto technology, skilled trades, hospitality, and IT. 

"As of June 30, 2009, Lincoln had over 26,000 students enrolled at 43 campuses in 17 states. The company recently completed the public offering of 4 million shares of stock sold by Back to School Acquisition LLC, a selling shareholder, for $20.25 per share. Back to School still owns more than 10 million shares post-offering.

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"In the company’s latest reported second quarter, sales increased approximately 50% to $128.1 million from $85.1 million in the second quarter of last year, aided by acquisitions. 

"Lincoln reported earnings per share of $.43 in the latest reported second quarter versus $.05 in the same quarter of last year.

"LogMeIn (NASDAQ: LOGM) is a leading provider of remote-connectivity solutions; its remote access solutions allow users to access and back up their home or work computers from anywhere with an internet connection, including through the use of an iPhone.

"LogMeIn products also provide remote support and management services to businesses and IT help desks, helping them to increase functionality and efficiency. Their LogMeIn Rescue offering allows support teams such as Best Buy’s Geek Squad to quickly access, view and fix remote devices. 

"Given permission from the computer user, a computer technician can access, view, and even control the end-user’s computer to resolve any problems, all through an Internet chat window without requiring pre-installed software on the end-user’s computer. 

"In the company’s latest reported second quarter, sales increased approximately 58% to $18.0 million from $11.4 million in the second quarter of last year. LogMeIn reported earnings per share of $0.17 in the latest reported second quarter versus a loss in the same quarter of last year. 

"PrivateBancorp, Inc. (NASDAQ: PVTB) provides commercial banking services, real estate services, wealth management and individual banking services to business owners and executives, entrepreneurs and families within the communities they serve.

"It has 34 offices in 10 states, serving the greater Atlanta, Chicago, Cleveland, Denver, Des Moines, Detroit, Kansas City, Milwaukee, Minneapolis and St. Louis metropolitan areas.

"In the company’s latest reported second quarter, sales increased appproximately 80% to $95.8 million from $53.1 million in the second quarter of last year. PrivateBancorp reported earnings per share of $.06 in the latest reported second quarter versus loss in the same quarter of last year.

""Clients of Oberweis Asset Management own approximately 150,000 shares each of of LIncoln Educational and PrivateBancorp and 24,000 shares of LogMeIn. We believe the shares of all three small cap stocks may be appropriate for risk oriented investors."


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