The BizTimes Stock Index is off to a miserable start in 2008, as it plunged to a 52-week low of 151.34 on Jan. 8, with several local stocks giving back their gains for all of 2007.
The index, which calculates the cumulative value of stocks for publicly held companies based in southeastern Wisconsin, did not keep pace with its broader stock market brethren in 2007.
The local stock index dipped 4.6 percent last year. By comparison, the Dow Jones Industrial Average gained 6.4 percent, the S&P 500 gained 3.0 percent and the Nasdaq Composite Index gained 9.8 percent.
Of course, the Nasdaq was fueled by the growth of technology companies.
Conversely, the BizTimes Stock Index, which represents stocks of companies based in Milwaukee, Waukesha, Walworth, Kenosha, Racine, Washington, Ozaukee and Sheboygan counties, remains heavily laden with manufacturers, reflecting the local economy. The local index lost ground in 2007 after gaining 12.1 percent in 2006.
Nine of the 10 top-performing local stocks for 2007 were manufacturers. Twin Disc Inc. led the way, followed by Bucyrus International Inc., Badger Meter Inc., Actuant Corp., Joy Global, Johnson Controls Inc., Johnson Outdoors Inc., Ladish Co. and Sensient Technologies Corp.
The only non-manufacturer in the local top 10 was Midwest Air Group Inc., the Oak Creek-based parent company of Midwest Airlines that is on the verge of being acquired by a private equity firm and Northwest Airlines Inc.
Twin Disc’s stock price soared 99.35 percent to $70.77 per share in 2007, when the company announced a two-for-one stock split that would be enacted at the end of the year. The Racine-based company designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment. The company’s products include marine transmissions, surface drives, propellers and boat management systems, as well as powershift transmissions, hydraulic torque converters, power take-offs, industrial clutches and control systems.
Twin Disc sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets.
“Going forward, we expect that fiscal 2008 will be another good year, as worldwide demand for our products continues in the markets we serve,” said Michael Batten, chairman, president and chief executive officer of Twin Disc.
The list of the 10 worst-performing local stocks of 2007 includes several household Milwaukee names: Merge Technologies Inc., MGIC Investment Corp., Marshall & Ilsley Corp., Gehl Co., The Marcus Corp., Modine Manufacturing Inc., Harley-Davidson Inc., Kohl’s Corp., Journal Communications Inc. and Wauwatosa Holdings Inc.
MGIC Investment, Marshall & Ilsley and Wauwatosa Holdings were directly and adversely affected by the collapse of the subprime mortgage market.
The credit crunch took a toll on consumer-based companies such as Marcus, Harley-Davidson and Kohl’s.
The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.
