KIK's Picks (Pt. 2)
OISI.OB (Opthalmic Imaging Systems-$2.25) OISI makes digital imaging systems for the eyecare market. This one has a very impressive LT track record, with sales of $11.3M in 2004, $13.7M 2005, and $15.8M 2006. Pre-tax income over the same periods was $1.1M, $1.7M, and $2.2M, respectively. Q1'07 continued the trend with sales up 14% and net income up 35%. Trailing P/E is currently 15; I think 20-25 is justified with the consistent results OISI reports.
QMRK.OB (Qualmark-$1.50) QMRK makes a unique line of products that helps major corporations accelerate the testing of new products and get those products to market faster. While Q1'07 showed depressed results, I'm banking on the company's record backlog and its move into India (announced 5/17). Also, the relatively narrow 52-week trading range ($1.20-2) intrigues me.
When it comes to P/Es, 7 is the new 14...
