While most national benchmarks showed the stock market up more than 20 percent, stocks on the Providence Business News weekly stockwatch showed a more modest gain of slightly more than 10 percent.
But given that the majority of those stocks are not among the top 50 on the S&P 500 that have driven this national market, the figures are much more in line.
Remove the top 50 stocks from the S&P 500, and the gains for 1998 were 11 percent, rather than 26.67 percent, according to Janet Engels, who heads Tucker Anthony’s equities division.
The market gains “have been big cap driven,” Engels said. “It’s almost like a big cap party.”
In fact, of the 2,374 stocks on the New York Stock Exchange only 945 (39.8%) were up at year’s end, with 1,429 (60.2%) down, Engels said. On the Over the Counter Exchange, 1,261 stocks were up (34.8 percent) and 2,360 were down (65.2 percent).
In that sense, the local stockwatch fared better, with 20 of the 46 stocks (43.4%) that were on the list at the start of 1998 and again in 1999 showing gains. Twenty six stocks were down (56.5 percent). However, four stocks dropped from the local stockwatch over the year: LIN TV (which was sold); BPI Packaging and Nu-Tech Bio Med, which were de-listed; and Quadrax, which went bankrupt.
Stocks that were added to the stockwatch during 1998 were Bank Rhode Island, Journal Register, and Infinite Group, which, however, was trading at 47 cents per share.
The company last week entered into an agreement with Clearwater Fund IV, LLC to repurchase 2,493,277 shares of its common stock in exchange for 444,444 Series
A Preferred Stock of Spectra Science Corp., valued at $2.25 per share, and $246,638 in cash.
Many analysts have suggested that while the market continues to climb, it is very narrow, with big caps driving the market, and the “strong continuing to get strong,” Engels said.
And that too is reflected locally, with some of the major winners. In a comparison of our stockwatch from January 19, 1998 to January 18 of this year, the top winners were: Texas Instruments at 95.2 percent, American Power Conversion up 91.46 percent, Cox Communications up 59.9 percent and CVS up 57.7 percent. Stock splits were taken into consideration.
Texas Instruments, American Power Conversion and Cox Communications all belong to sectors nationally that have thrived. Technology stocks were the best performers among the S&P 500, gaining 72.4 percent over the year, and communications was second at 49.3 percent.
CVS is in posistion to capitalize on aging Baby Boomers.
Of CVS, Engels said that the company, and other drug retailers, are in an excellent position to capitalize on the aging of the Baby Boomers. “People are living longer and they (CVS) continue to execute on their plan.”
Even though a smaller stock may perform well, Engels said, it often is not reflected in its stock price. The small caps, she said, are often overlooked, “left by the wayside.”
That too is reflected in the local stockwatch, although some of the major losers have also had difficult years. Bio-technology stocks suffered, with Alpha Beta down 77.8 percent, and CytoTherapeutics, which some analysts continue to believe holds great promise, down 51.4 percent.
KVH Industries was down 71.1 percent, Media Logic was down 76.3 percent, and Nestor was down 71.9 percent.
