UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934
                           (Amendment No.____________)


                                 Pharmanetics, Inc.
                                (Name of Issuer)


                                    Common
                         (Title of Class of Securities)


                                    71713J107
                                 (Cusip Number)



Check the following box if a fee is being paid with this  statement  ___. (A fee
is not required only if the filing person:  (1) has a previous statement on file
reporting  beneficial  ownership  of more  than  five  percent  of the  class of
securities  described  in Item 1;  and (2) has  filed  no  amendment  subsequent
thereto reporting  beneficial  ownership of five percent or less of such class.)
(See Rule 13d-7).

* The remainder of this cover page shall be filled out for a reporting  person's
initial  filing  on this  form  with  the  respect  to the  subject  of class of
securities,  and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).

                                                                     Page 1 of 4




CUSIP NO.          413801101              13G                        Page 2 of 4
--------- ----------------------------------------------------------------------
1         Name of Reporting Person
          S.S. or I.R.S. Identification No. of Above Person

          Salem Investment Counselors, Inc.
          56-1225913
--------- ----------------------------------------------------------------------
2         Check the Appropriate Box if a Member of a Group
--------- ----------------------------------------------------------------------
3         SEC Use Only
--------- ----------------------------------------------------------------------
          Citizenship or Place of Organization
          North Carolina
--------- ----------------------------------------------------------------------
5         Sole Voting Power
          421,120
--------- ----------------------------------------------------------------------
6         Shared Voting Power
--------- ----------------------------------------------------------------------
7         Sole Dispositive Power
          421,120
--------- ----------------------------------------------------------------------
8         Shared Dispositive Power
--------- ----------------------------------------------------------------------
9         Aggregate Amount Beneficially Owned By Each Reporting Person
          421,120
--------- ----------------------------------------------------------------------
10        Check Box if the Aggregate Amount is Row (9) Excludes Certain Shares
--------- ----------------------------------------------------------------------
11        Percent of Class Represented by Amount in Row 9
          5.38%
--------- ----------------------------------------------------------------------
12        Type of Reporting Person
          IA
--------- ----------------------------------------------------------------------



                            SCHEDULE 13G                             Page 3 of 4
                            ------------


Item 1 (a)        Name of Issuer:
                  Pharmanetics, Inc.

Item 1 (b)        Address of Issuer's Principal Executive Offices:
                  5301 Departure Drive
                  Raleigh, North Carolina 27616

Item 2 (a)        Name of Person Filing:
                  Salem Investment Counselors, Inc.

Item 2 (b)        Address of Principal Business Office:
                  P.O. Box 25427
                  Winston-Salem, North Carolina 27114-5427

Item 2 (c)        Citizenship:
                  North Carolina Corporation

Item 2 (d)        Title of Class of Securities:
                  Common Stock

Item 2 (e)        Cusip Number:
                  71713J107

Item 3 (e)        [ X ]  Investment Advisor registered  under Section 203 of the
                         Investment Advisors Act of 1940.

Item 4            Ownership:

                  (a)  Amount beneficially owned: 421,120
                  (b)  Percent of Class: 5.38%
                  (c)  Number of Shares as to which such person has

                  (i)   Sole power to vote or to direct the vote: 421,120
                  (ii)  Shared power to vote or direct the vote:  -0-
                  (iii) Sole power to dispose or direct the disposition: 421,120
                  (iv)  Shared power to dispose or direct the disposition of:-0-

Item 5            N/A

Item 6            N/A

Item 7            N/A

Item 8            N/A

Item 9            N/A



                            SCHEDULE 13G                             Page 4 of 4
                            ------------



Item 10: Certification:

                    By signing  below I certify that to the best of my knowledge
                    and belief,  the securities  referred to above were acquired
                    in the ordinary course of business and were not acquired for
                    the  purpose  of and do not have the effect of  changing  or
                    influencing the control of the issuer of such securities and
                    were not acquired in connection  with or as a participant in
                    any transaction having such purposes or effect.

                    Signature

                    After reasonable inquiry and to the best of my knowledge and
                    belief,  I certify  that the  information  set forth in this
                    statement is true, complete and correct.


                              2/12/01
                              -------
                              Date


                               /s/ David B. Rea
                              -----------------
                              Signature

                              David B. Rea, President
                              -----------------------
                              Name/Title