Dronamraju Ravi Prakash

I wanted to look around and find some other picks - other than Google, Yahoo, juniper etc. Looking at the market, it was pretty disappointing at first. It did not seem like there were any growth stories except Google, eBay or Yahoo!.

I thought a lot about short plays. I came up with a few short plays (ASKJ, AAPL). However, my tendency is to be a long investor and i like to find growth plays. I'll come back to these short plays later, however, I started digging deeper to find any growth plays.

I found 2 interesting stocks. One is a tech stock and other is in healthcare. What I like about both these companies,

1. Profitable companies
2. Growing well (not google like but good growth)
3. Valued fairly

The first one i like is ISSX (Internet Security Systems). They came out with solid earnings report this morning, beating revenue estimates by a million. They growing sequentially about 3-4% and that's not bad for the current tech environment. Overall, the internet security trend is something that will expand and ISSX is positioned well.

The second one is a very small cap stock. I like PRZ (Paincare Holdings) a healthcare service provider. They identify niches in the service industry like managed practices or limited management practices. It is trading 3 times trailing twelve months revenue of 24.7M$. They are profitable at these revenue levels with net margins of 10%. Another in the same industry is USPH (US Physical Therapy)