Home Stocks Colorado stocks show big gains despite a choppy second quarter

Colorado stocks show big gains despite a choppy second quarter

5 min read
0
212

The drum beats of a trade war put global stock markets on edge during the second quarter, but that didn’t prevent several Colorado stocks from posting double-digit gains.

The Bloomberg Colorado index, a price-weighted basket of 67 stocks based in Colorado, rose 14.1 percent in the second quarter.

That handily beat the 2.93 percent gain during the quarter in the S&P 500, the 0.7 percent gain in the Dow Jones industrial average and even the 6.3 percent gain in the Nasdaq composite.

More than 40 Colorado stocks, across a variety of industries, scored double-digit gains during the quarter, led by Natural Grocers by Vitamin Cottage, which shot up 77.9 percent.

At the start of the year, the Lakewood-based grocery chain rolled out a successful strategy of discounting prices to draw more traffic without crushing profit margins. Quarterly sales jumped 12.3 percent jump and net income rose 13.6 percent, according to a May 3 earnings report that set company’s stock running.

A concern among analysts, however, is how loyal will those new customers remain if and when Natural Grocers, which lacks the buying power of larger rivals, reduces those discounts.

DMC Global, a Boulder-based industrial company, saw a 67.8 percent gain in its share price. As with Vitamin Cottage, investors responded positively to stronger than expected earnings.

Company sales surged 73 percent in the first quarter on increased demand for its oilfield products. That turned a $3 million net loss in the first quarter of 2017 into a $3.9 million net income in the first.

Noodles & Co. and Chipotle Mexican Grill continued to remain in the good graces of investors during the quarter, with shares up 62.9 percent and 33.5 percent respectively. Investors are betting that new chief executives at each company will turn things around.

An $11 jump in the price of a barrel of domestic crude during the quarter contributed to strong gains at Colorado’s oil and gas producers. Shares of Whiting Petroleum were up 55.8 percent, SM Energy up 42.5 percent, and Bonanza Creek Energy up 36.7 percent.

The Colorado companies with the biggest quarterly declines included Aytu Bioscience, down 58.8 percent; Real Goods Solar, down 41.8 percent; and Evolving Systems, down 40.8 percent.

Aytu makes male dysfunction and fertility products, Real Goods Solar is a residential solar integrator, and Evolving Systems provides telecom services.

Let’s block ads! (Why?)


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

States Put the Brakes on Car-Insurance Prices – Wall Street Journal

Updated May 21, 2019 1:00 p.m. ET Michigan has the highest car-insurance rates in the nati…