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Wednesday, December 31, 2008
Market Winners and Losers in 2008
Kathryn Buschman Vasel
FOXBusiness
This past year was a rough one and one most would soon like to forget.
Here’s a look at 2008’s top five winners and losers from each index.
Dow Jones Industrial Average
Top 5 Best DJIA Performers
Wal-Mart (WMT)
As the gloom caused many Americans to cut back on spending, the world’s largest retailer held its own in 2008.
While most retailers were reporting a steep drop during the holiday shopping season, Wal-Mart reported a 3.4% increase in same-store sales in November from the same period in 2007.
Net sales for the third quarter were $97.6 billion, an increase of 7.5% from the same period last year.
A few days before Christmas (Dec. 23) the retailer announced it will pay as much as $640 million to settle 63 lawsuits over wage-and-hour violations.
On Dec. 28, the Benton, Ark.-based retailer became the second retailer, after Best Buy, to sell Apple’s iPhone 3G at nearly 2,500 stores.
The discount giant shares were trading around $55 on the last day of 2008, up almost 15% year-to-date.
McDonalds (MCD)
Rising food and commodities prices in the middle of the year took a bite out of restaurants profits, causing many favorites like Bennigan's to close their doors. However, fast food chains, like McDonald's were able to weather the storm.
The fast-food king weighed in with hefty sales increases through much of 2008. Global sales increased 7.7% in November while domestic sales climbed 4.5%.
Shares of the hamburger chain were trading around $62 on the last day of 2008, up almost 4.8% year-to-date.
Johnson & Johnson (JNJ)
Because of its ability to generate cash flow from products other than prescription medicines, Johnson & Johnson was a solid move in 2008.
The company reported third-quarter earnings of $3.3 billion, or $1.17 a share, compared with $2.6 billion from the same time in 2007.
In late December, JNJ completed its acquisition of biopharmaceutical company Omrix Biopharmaceuticals Inc.
Shares of the consumer product maker were trading around $59 on the last day of 2008 are down 11.8% year-to-date.
Home Depot (HD)
To say it’s been a rough year for the housing market is putting it mildly, but Home Depot was able to weather the storm. While the housing downturn took its toll on the home improvement chain in 2006 and 2007, this year wasn’t so bad for the retailer.
The Atlanta-based retailer reported a third quarter cash dividend of 22.5 cents per share in November, and beat Wall Street expectations by posting a 31% drop in earnings for the third quarter.
Shares of the home improvement store were trading around $23 on the last day of 2008 -- down 14.2% for the year.
Exxon Mobil (XOM)
It’s no surprise that an oil company made the cut, with oil prices surging above $147 a barrel this summer. Even though crude and retail gas prices have significantly cooled off since then Exxon is still a market leader.
In June, largest publicly traded oil company announced plans to exit the retail gas industry.
In late October, the oil giant topped its own record for the biggest U.S. quarterly operating profit weighing in with a 58% jump from a year ago to $14.8 billion.
Exxon shares were trading around $80 on the last day of 2008, and are down 16% for the year.
Top 5 Worst DJIA Performers
General Motors (GM)
High gas prices and economic turmoil delivered a one-two punch to the auto industry and almost knocked out General Motors.
In early November, the Detroit auto maker warned its liquidity for 2009 will fall “significantly short” of what’s needed to operate its business and is in great need of government help.
The White House threw the struggling auto makers a $17.4 billion lifeline meant to buy them time to survive. GM is slated to receive $9.4 billion.
Shares of the auto maker were trading around $3.43 on New Year’s Eve and are down 84.7% for the year.
Citigroup (C)
While many of the financial institutions had a rough year, Citigroup had an especially tumultuous year.
CEO Vikram Pandit took on quite a load when he took control of the investment bank in late 2007. At the start of the year, rumors swirled that Citi might be forced to file for bankruptcy and sent its shares plummeting.
The subprime mortgage meltdown gave Citi a pounding as the company wracked up huge toxic debt on its balance sheet.
In late November, the government rescued the troubled firm by giving it a $20 billion cash injection. The money came from the $700 billion financial rescue package.
Shares of Citi were trading around 6.71 the day before the New Year and are down 76.9% for the year.
Alcoa (AA)
The aluminum giant took a hefty fall this year as construction spending slowed and demand for materials weakened.
The mining giant kicked off the earnings season with a dud, posting a 52% plunge in third-quarter earnings. The company said it earned $268 million in the third quarter, or 33 cents per share, compared with $555 million, or 63 cents per share, a year ago.
Shares for the company traded around $11.30 Wednesday and are down 70.1% for the year.
Bank of America (BAC)
It was a busy year in terms of acquisitions for the bank. In mid-September it purchased brokerage house Merrill Lynch for $29 per share in an all-stock transaction. And in July, BofA completed its purchase of mortgage giant Countrywide Financial Corp.
In October it posted a whopping 68% drop in third-quarter profit.
The Charlotte, N.C,.-based bank announced in early December announced it will cut up to 35,000 jobs over three years.
Shares of the bank were trading around $13 and are down 67.9% for the year.
American Express (AXP)
The credit card industry slumped this year as consumers cut back and default more on there payments. The company's shares took a hit as traders learned of its heavily exposure to troubled markets with high default rates.
The company became a bank holding company in November, helping it gain some flexibility to maneuver the markets.
The company ended the year trading at $18.55, down 65.4% for 2008.
Nasdaq Composite
It was a rough year for the Nasdaq Composite, which fell 41.53% for the year, breaking a string of five years of consecutive growth. Here are the best and worst performers for 2008.
NASDAQ 100 Gainers
Vertex Pharmaceuticals (VRTX)
The harmaceutical company closed at $30.38, up 30.9% for 2008.
Amgen Inc. (AMGN)
The biotechnology company closed the year at $57.75, up 24% for the year.
Celgene Corp. (CELG)
The biopharmaceutical company closed at $55.28, a gain of 18.2% for 2008.
Ross Stores Inc. (ROST)
Shares of the discount retailer closed at $29.73, advancing 15.4% year over year.
Gilead Sciences Inc. (GILD)
Shares of the biotechnology company closed at $51.14 and are up 11.6% for the year.
NASDAQ 100 Losers
Liberty Media Holding Corp. (LMDIB)
The media conglomerate closed Wednesday at $17.23, down 84.1% for the year.
Focus Media Holding Ltd. (FMCN)
The digital media group closed Wednesday $9.09, down 84.5% for 2008.
Seagate Technology (STX)
The California-based firm closed the year $4.43, down 83.8% for 2008.
Garmin Ltd. (GRMN)
The GPS manufacture closed Wednesday $19.17, down 79.7% for 2008.
Sun Microsystems (JAVA)
The computer vendor closed 2008 trading at $3.82, down 78.7% for the year.
S&P 500
The S&P 500 fell 577.72 points, or 39.34% in 2008. Here’s a look at the best and the worst.
S&P 500 Gainers
Family Dollar Stores Inc. (FDO)
The discount retailer closed at $26.07, up 32.7% for the year.
UST Inc. (UST)
The smokeless tobacco product maker closed at $69.38 for the year, up 26.3% for 2008.
Amgen Inc. (AMGN)
The biotechnology company closed at $57.75, up 24% for the year.
H&R Block Inc. (HRB)
The tax preparation firm closed at $22.73 on Wednesday, and is up 20.2% for the year.
Top 5 Best DJIA Performers
Wal-Mart (WMT)
As the gloom caused many Americans to cut back on spending, the world’s largest retailer held its own in 2008.
While most retailers were reporting a steep drop during the holiday shopping season, Wal-Mart reported a 3.4% increase in same-store sales in November from the same period in 2007.
Net sales for the third quarter were $97.6 billion, an increase of 7.5% from the same period last year.
A few days before Christmas (Dec. 23) the retailer announced it will pay as much as $640 million to settle 63 lawsuits over wage-and-hour violations.
On Dec. 28, the Bentonville, Ark.-based retailer became the second retailer, behind Best Buy, to sell Apple’s iPhone 3G at nearly 2,500 stores.
The discount giant shares were trading around $55 on the last day of 2008, up almost 15% year-to-date.
McDonalds (MCD)
Rising food and commodities prices in the middle of the year took a bite out of restaurants profits, causing many favorites like Bennigan's to close their doors. However, fast food chains like McDonald's were able to weather the storm.
The fast-food king weighed in with hefty sales increases through much of 2008. Global sales increased 7.7% in November while domestic sales climbed 4.5%.
Shares of the hamburger chain were trading around $62 on the last day of 2008, up almost 4.8% year-to-date.
Johnson & Johnson (JNJ)
Because of its ability to generate cash flow from products other than prescription medicines, Johnson & Johnson was a solid move in 2008.
The company reported third-quarter earnings of $3.3 billion, or $1.17 a share, compared with $2.6 billion from the same time in 2007.
In late December, JNJ completed its acquisition of biopharmaceutical company Omrix Biopharmaceuticals Inc.
Shares of the consumer product maker were trading around $59 on the last day of 2008 are down 11.8% year-to-date.
Home Depot (HD)
To say it’s been a rough year for the housing market is putting it mildly, but Home Depot was able to weather the storm. While the housing downturn took its toll on the home improvement chain in 2006 and 2007, this year wasn’t so bad for the retailer.
The Atlanta-based retailer reported a third quarter cash dividend of 22.5 cents per share in November, and beat Wall Street expectations by posting a 31% drop in earnings for the third quarter.
Shares of the home improvement store were trading around $23 on the last day of 2008 -- down 14.2% for the year.
Exxon Mobil (XOM)
It’s no surprise that an oil company made the cut with oil prices surging above $147 a barrel this summer. Even though crude and retail gas prices have significantly cooled off since then Exxon is still a market leader.
In June, largest publicly-traded oil company announced plans to exit the retail gas industry.
In late October, the oil giant topped its own record for the biggest U.S. quarterly operating profit weighing in with a 58% jump from a year ago to $14.8 billion.
Exxon shares were trading around $80 on the last day of 2008 and are down 16% for the year.
Top 5 Worst DJIA Performers
General Motors (GM)
High gas prices and economic turmoil delivered a one-two punch to the auto industry almost knocking out General Motors.
In early November, the Detroit auto maker warned its liquidity for 2009 will fall “significantly short” of what’s needed to operate its business and is in great need of government help.
The White House threw the struggling auto makers a $17.4 billion lifeline meant to buy them time to survive. GM is slated to receive $9.4 billion.
Shares of the auto maker were trading around $3.43 on New Year’s Eve and are down 84.7% for the year.
Citigroup (C)
While many of the financial institutions had a rough year, Citigroup had an especially tumultuous year.
CEO Vikram Pandit took on quite a load when he took control of the investment bank in late 2007. At the start of the year, rumors swirled that Citi might be forced to file for bankruptcy and sent its shares plummeting.
The subprime mortgage meltdown gave Citi a pounding as the company wracked up huge toxic debt on its balance sheet.
In late November, the government rescued the troubled firm by giving it a $ 20 billion cash injection. The money came from the $700 billion financial rescue package.
Shares of Citi were trading around 6.71 the day before the New Year and are down 76.9% for the year.
Alcoa
The aluminum giant took a hefty fall this year as construction spending slowed and demand for materials weakened.
The mining giant kicked off the earnings season with a dud, posting a 52% plunge in third-quarter earnings. The company said it earned $268 million in the third quarter, or 33 cents per share, compared with $555 million, or 63 cents per share, a year ago.
Shares for the company traded around $11.30 Wednesday and are down 70.1% for the year.
Bank of America (BAC)
It was a busy year in terms of acquisitions for the bank. In mid-September it purchased brokerage house Merrill Lynch for $29 per share in an all-stock transaction. And in July BofA completed its purchase of mortgage giant Countrywide Financial Corp.
In October it posted a whopping 68% drop in third-quarter profit.
The Charlotte, N.C,.-based bank announced in early December announced it will cut up to 35,000 jobs over three years.
Shares of the bank were trading around $13 and are down 67.9% for the year.
Nasdaq Composite
It was a rough year for the Nasdaq Composite, which fell 41.53% for the year, breaking a string of five years of consecutive growth. Here are the best and worst performers for 2008.
NASDAQ 100 Gainers
Vertex Pharmaceuticals (VRTX)
The Pharmaceutical closed at $30.38, and is up 30.9% for 2008.
Amgen Inc. (AMGN)
The biotechnology company closed the year at $57.75, up 24% for the year.
Celgene Corp. (CELG)
The biopharmaceutical company closed at $55.28, up 18.2% for 2008.
Ross Stores Inc. (ROST)
Shares of the discount retailer closed at $29.73 and are up 15.4% year over year.
Gilead Sciences Inc. (GILD)
Shares of the biotechnology company closed at $51.14 and are up 11.6% for the year.
NASDAQ 100 Losers
Liberty Media Holding Corp. (LMDIB)
The media conglomerate closed Wedneday at $17.23, down 84.1% for the year.
Focus Media Holding Ltd. (FMCN)
The digital media group closed Wednesday at $9.09, down 84.5% for 2008.
Seagate Technology (STX)
The California-based firm closed the year $4.43, down 83.8% for the 2008.
Garmin Ltd. (GRMN)
The GPS manufacturer closed Wednesday $19.17, down 79.7% for 2008.
Sun Microsystems (JAVA)
The computer vendor closed 2008 trading at $3.82, down 78.7% for the year.
S&P 500
The S&P 500 fell 577.72 points for the year or 39.34 in 2008. Here’s a look at the best and the worst.
S&P 500 Gainers
Family Dollar Stores Inc. (FDO) 32.657
The discount retailer closed at $26.07, up 32.7% for the year.
UST Inc. (UST) 26.259
The smokeless tobacco product maker closed at $69.38 for the year, up 26.3% for 2008.
Amgen Inc. (AMGN) 24.009
The biotechnology company closed at $57.75, up 24% for the year.
H&R Block Inc. (HRB)
The tax preparation firm closed at $22.73 on Wednesday, and is up 20.2% for the year.
Celgene (CELG)
The biopharmaceutical company closed at $55.28, up 18.2% for 2008.
S&P 500 Losers
AIG (AIG)
The insurance giant closed the year trading at $1.57, down 97.3% for 2008.
XL Capital Ltd.(XL)
The adhesive maker closed the year trading at $3.70, down 92.944 for the year.
American Capital Ltd. (ACAS)
The equipment finance corporation closed Wednesday at $3.24, down 91.080 for 2008.
Genworth Financial Inc. (GNW)
The insurance products and financial management firm closed the year at $2.83 down 88.8%
National City Corp (NCC)
The bank said goodbye to 2008 at a trading price of $1.81, down 89% for the year.
The biopharmaceutical company closed at $55.28, up 18.2% for 2008.
Here's to a better 2009!
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It's time to let you in on a dirty little secret: You may not own the stock you own. That's right, if you invest with a brokerage firm, the shares you bought are almost certainly not held in your name. Technically, they're held in the name of the Wall Street firm you do business with, hence the term "street name."
No, you haven't been robbed. Ultimately, the decision to hold shares on the books under a different name doesn't affect the economic ramifications for you. You¿re listed as the "beneficial owner," even though the firm is the official owner of the shares. But, you are giving up some rights, and investors concerned about good corporate governance might want to get that stock back in their own names.
Here's the problem: If your stock is technically owned by, say, Merrill Lynch, then Merrill Lynch gets to do things with it that might work against your wishes. Take short selling. Investors who want to sell shares short need to first borrow those shares. The lenders are often the big Wall Street firms that are handing out Street-name shares. So, if you feel that a company you own is a victim of aggressive short selling, chances are your own shares are being used to fuel the shorting.
Also, your brokerage firm can cast ballots on some corporate matters affecting a company without getting your input. Technically, this can only happen in votes considered ¿routine¿ by securities regulators. But, there's a big catch: some big events, like board elections, are considered "routine" under law.
The good news is that you can easily fix the Street name problem: Just request that your brokerage firm makes you the listed owner of the shares. If they refuse, find a new firm.
