The DM sector has not followed the broader market trend during the first half of 2005. And that is good news for the industry.
While the Dow Jones industrial average, Nasdaq composite and S&P 500 Index have been disappointing at best, the DM News Portfolio of 100 publicly traded DM firms has shown considerable strength, increasing 17.56 percent in value so far this year. The Portfolio's value has reached $117,563. It is based on $1,000 being invested in each of the 100 companies at the start of the year, or when the stock first closed for newly public firms.
Consider the broader market and its sluggishness this year.
· The Dow closed at 10,729.43 on Jan. 3, yet as of last week was struggling to stay above 10,400 as news of oil reaching $60 per barrel has depressed the best-known measure of the market's performance.
· The Nasdaq closed at 2,152.15 on Jan. 3 and is just below the 2,100 level.
· The S&P 500 is virtually unchanged from the Jan. 3 close, when it was at 1202.08.
One of the big DM winners so far this year is Franklin Covey, up more than 210 percent from its $2.45 closing price Jan. 3 to a $7.58 close June 28. The Salt Lake City-based firm provides integrated consulting, training and performance enhancement solutions to organizations and individuals in strategy execution, productivity, leadership, sales force effectiveness, effective communications and other areas. Its products and services are available through consulting services, public workshops, retail stores, catalogs and the Internet.
Also turning in a solid performance this year has been Cenveo Inc., with more than a 151 percent increase. It closed at $3.11 on Jan. 3 and reached $7.80 on June 28. The Englewood, CO-based printer and manufacturer of envelopes, business forms and labels offers products such as offset and digital printing, custom and stock envelopes as well as business documents and labels.
The performance comes despite an attempt by dissident shareholders to take over the company's board of directors. The company instead recently named James R. Malone, founder and managing partner with Qorval LLC, as its new CEO. Qorval, Naples, FL, specializes in turning around flagging companies.
He will help Cenveo as it examines “strategic alternatives,” which could include a sale of the company. The company said it is reviewing expressions of interest from unnamed parties.
But not all the news was good in the first half of the year. Amazon's stock price of $33.71 as of June 28 was about 25 percent below the $44.52 it closed at on Jan. 3.
Enesco Group Inc., Itasca, IL, has fallen about 75 percent in the period, to $2.13. The company produces gifts, collectibles and home decor accessories. Customers include independent gift retailers, national gift chains, mass merchants, military post exchanges, club stores, home television shopping networks, florists, hospital gift shops, home decor chains and independents, garden stores, jewelry and department stores and catalogs.