D.A. Davidson & Co., the largest full-service investment firm based in the Northwest, today announced that the Davidson 99 Regional Stock Index® rose 6.9 percent during 2007, outperforming the Dow Jones Industrial Average and the S&P 500 but falling behind the NASDAQ Composite’s performance for the year. The Davidson 99’s relatively small increase reflects some of the volatility that was experienced across the U.S. securities markets for the year.
For 2007, the Dow Jones Industrial Average gained 6.4 percent, while the S&P 500 and NASDAQ Composite were up 3.5 percent and 9.8 percent, respectively.
Since its inception on Jan. 1, 2004, the Davidson 99 index risen by 55.7 percent. Coincidentally, the regional index is off for the fourth quarter of 2007 by 6.9 percent – the same percentage as the index’s increase for the full year. The Davidson 99’s decline for the quarter compared with a 4.7 percent decline for the Dow, a 4.1 percent decline for the S&P 500 and a 2.1 percent decline for the NASDAQ Composite.
“The Davidson 99 Regional Index made gains during the year but also experienced many of the same fluctuations as the major market indices, reflecting the enormous volatility of energy prices, global geopolitical tensions, the effects of the ongoing subprime mortgage situation and the impact of the housing slowdown on the overall economy,” said Fred Dickson, Director of Private Client Research and Chief Market Strategist for D.A. Davidson & Co.
“The Davidson 99 was hurt by substantial declines in the stock price of several regional banks and consumer products companies included in the index during the fourth quarter,” Dickson said. “These losses were partially offset by gains recorded by technology, energy and electric utility companies.”
For the year, 24 stocks in the Davidson 99 gained more than 25 percent. They were led by Chipotle Mexican Grill, up 158 percent; Amazon.com, up 135 percent; and Flir Systems Inc., up 97 percent.
The Davidson 99 stocks with the worst performance for the year were Coldwater Creek Inc., which experienced a 73 percent drop; Washington Mutual Inc., down 70 percent; and Nautilus Group Inc., off 65 percent.
During the fourth quarter, D.A. Davidson & Co. made several changes to the Davidson 99. UAP Holdings, based in Colorado, replaced Washington Group International after Washington Group was acquired by URS Corp. Emergency Medical Services, also Colorado-based, replaced Tektronix Corp. after that firm was acquired during the quarter by Danaher Corp.
The Davidson 99 was launched Jan. 1, 2004. It is comprised of 99 stocks from companies operating within seven Northwest and Rocky Mountain states, including Colorado, Idaho, Montana, Oregon, Utah, Washington and Wyoming. The securities were selected based on market capitalization, importance within their sectors and importance in the states they represent. All 10 major market sectors are represented, showing the diversification of the region’s companies.
The Davidson 99 Regional Index is published daily at dadavidson.com, along with occasional commentary from D.A. Davidson’s Private Client Strategy Team on the performance of the index and implications regarding the economic health of these regions. The index is price-weighted, or calculated in the same manner as the Dow Jones Industrial Average, the world’s most widely followed stock index. The closing price of each component in the index is determined daily after the markets’ close, and the values are summed and compared with the value set on Dec. 31, 2003, then adjusted for stock splits and mergers. The index was set to a base value of 100 on Dec. 31, 2003.
About D.A. Davidson & Co.
Founded in 1935, D.A. Davidson & Co. is an independently owned, full-service investment firm based in Montana, with offices in 16 states. D.A. Davidson & Co. is owned by Davidson Companies, one of the nation’s leading regional financial services holding companies. Also part of Davidson Companies are Davidson Investment Advisors, a professional money management firm; Davidson Trust Co., a wealth management and trust firm; Davidson Fixed Income Management, a registered investment adviser providing money management and other fixed income services; and Davidson Travel, a full-service travel agency.
Shares in the Davidson 99 Regional Stock Index cannot be bought or sold, and companies included in the index may or may not be covered by D.A. Davidson’s research team. Information regarding the national indices referred above or a complete list of companies covered by Davidson research can be obtained at www.dadavidson.com or by contacting a local D.A. Davidson office. D.A. Davidson makes a market in Coldwater Creek Inc. and Flir Systems Inc.