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Jim Oberweis Recommends the Following Stocks: Dot Hill Systems and Kos Pharmaceuticals

Tuesday, 12-Aug-2003 3:20AM PDT
    
Story from Zacks.com via BizWire
Copyright 2003 by Business Wire (via ClariNet)

CHICAGO--(BUSINESS WIRE)--Aug. 12, 2003--Is it time to take some profits? Jim Oberweis says 'no!', and instead offers a simple option strategy to limit risk and increase profit potential, along with a pair of his recent stock recommendations. Read about Dot Hill Systems Corporation (NASDAQ:HILL) and Kos Pharmaceuticals, Inc. (NASDAQ:KOSP). Click here for the full story exclusively on Zacks.com: http://featuredexpert2bw.zacks.com/

Here are the highlights from the Featured Expert column:


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Selling calls, or more specifically writing "out-of-the-money" covered calls, on highly appreciated stocks may be an attractive alternative. This strategy can be used as a way to reduce overall portfolio volatility while remaining fully invested. Although the Oberweis team would never advocate timing the market, because it's impossible to get it consistently right, they would advise at least considering utilizing this very simple option strategy as a way to mitigate risk and increase income from some of your recent winners.

Dot Hill Systems Corporation (NASDAQ:HILL) is a provider of data storage and networking solutions. The company designs, manufactures, markets and supports data storage products and systems for the open systems computing environments, including Windows NT, Solaris, Linux, HP-UX and AIX. Net revenue increased to $48.4 million for the second quarter of 2003, compared to $11.2 million for the second quarter of 2002, and $30.5 million for the first quarter of 2003. This represents a 332% increase year over year, and a 59% sequential increase.

Kos Pharmaceuticals, Inc. (NASDAQ:KOSP) is a fully integrated specialty pharmaceutical company engaged in developing, commercializing, manufacturing and marketing proprietary prescription products for the treatment of chronic diseases. The company currently markets Niaspan(R) and Advicor(TM) for the treatment of cholesterol disorders. For the first quarter of 2003 ended March 31, revenue increased 101% to $68.3 million, up from $33.9 million for the first quarter 2002. Earnings for the quarter grew to $.35 vs. a loss in the March quarter a year ago. This quarterly earnings number included the effect of a change in product return estimates; excluding this one time item, the company earned $.08 a diluted share in the quarter.

Get three more of Jim Oberweis' recommendations and make sure to read his complete commentary on covered call writing by clicking: http://featuredexpert3bw.zacks.com/

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