Heaven for Hypochondriacs
Investors are being drawn to the interactive database of A.D.A.M. (ADAM), which provides info on diseases, symptoms, and treatment. A.D.A.M., which stands for Animated Dissection of Anatomy for Medicine, furnishes a virtual encyclopedia on health and medicine to outfits such as the Cleveland Clinic, Manhattan's Lenox Hill Hospital, and The New York Times (NYT),which uses the data for its online Health Guide. A.D.A.M. embeds its content in clients' Web sites.
Demand is strong for the library, says Tim Brown of Roth Capital Partners. He figures A.D.A.M. will earn 39 cents a share in 2008 and 56 cents in 2009, up from 28 cents in 2007. He recommends the stock, now at 7.52, as a buy. A.D.A.M. is a "compelling play on an "evolving consumer-directed health-care marketplace," says Chad Bennett of Northland Securities. He rates the stock outperform with a 12-month target of 10.
Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.
Gene Marcial writes the Inside Wall Street column for BusinessWeek
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