Friday, October 12, 2012

North Carolina Corp Stock Prices Up an Average 99% Since President Obama Took Office

In a recent post, from an extensive review of SEC filings, I found 75 Corps headquartered in the State of North Carolina, which generated Core, Ongoing Pretax Income or Pretax Loss of at least $10 mil each in any of the most recent three fiscal years, and which also had earnings numbers disclosed for each of the five most recent years.

In this past recent post, I also found that these 75 Largest North Carolina Corps filing with the SEC had Audited under US Generally Accepted Accounting Principles (US GAAP) Total After-tax Net Income of $11.64 bil in the most recent fiscal year 2011, which was a profit improvement of $2.48 bil as compared with the $9.16 bil of After-tax Net Income generated by these same 75 North Carolina companies just three years earlier in 2008, the last year of the Bush/Cheney Administration.  And this $2.48 bil total earnings growth occurred despite the 2011 total earnings being burdened by North Carolina's giant Bank of America recording a $14 bil Mortgage Representations and Warranties Charge as well as a $3.2 bil Goodwill Impairment Charge.

North Carolina Corp 2011 Earnings 

Since corporate earnings drive stock prices, in this post I turn my attention to just how well the stock market prices of these North Carolina Corps have performed since President Obama took office.

Of these 75 North Carolina Corps, 56 of them had their common stock trading on both January 16, 2009, which is the last day stocks traded before President Obama took office, and also on yesterday's date, Thursday, October 11, 2012.  I excluded the very profitable Hatteras Financial since a substantial portion of its earnings were distributed as dividends.

I retrieved all of the below stock market closing price information from the excellent Big website.

These 56 North Carolina Corps had an average stock market price increase of a very healthy 99% since President Obama took office on January 20, 2009.  This is much better than the increase in both the S&P 500 Index, which increased by 69%, and the Dow Industrials Index, which increased by 61%, both during the identical time span.  And this 99% average stock market price increase occurred despite so many smaller North Carolina financial firms having a significantly adverse effect.

So what this means in simplistic terms is that if you invested the same amount of money.....say $1, the common stock of each of these 56 North Carolina companies at the closing market price on January 16, 2009, this would have cost you initially $56,000, ignoring any transaction costs, and this stock portfolio would now be worth $111,440.     

The many financially astute North Carolina citizens already had this all figured out.  They probably just didn't previously have the precise average percentage increases tied down.

North Carolina citizens have to be extremely happy with the stock market performance of their many fine North Carolina companies during the Obama Administration.

And North Carolina citizens also must be very pleased with how the Obama Administration worked so hard and very effectively on so many fronts to create a US economic environment that permitted these North Carolina companies to flat out flourish.  This highly successful effort created a robust US economic environment which was quite a change from what existed in the horrible financial meltdown, near Depression year of 2008.

When I think of the Obama Administration, the thought that comes top of mind is whole-scale competence.  But frankly, it's also pretty clear to me that the Obama Administration is just not very good at selling its many accomplishments, particularly on the economic front.

About the only thing I hear from the Obama Administration on the economic front is the positive effect on the US economy of the Auto Rescue.  Granted, this did positively and substantially impact Michigan, Ohio, Indiana and some other states.  But the Auto Rescue had little to do with North Carolina Corps 99% average stock price increase, Iowa Corps 99% average stock price increase, Virginia Corps 97% average stock price increase, Nevada Corps 178% average stock price increase, Colorado Corps 179% average stock price increase, and with Florida Corps 137% average stock price increase....all occurring during the Obama Administration.  There is something else very positive going on in the US economy since President Obama has taken over, and the Obama Administration has very modestly taken no credit for it.  But when you think of the overall US economy in 2008 and now, there is clearly a substantial turnaround that has occurred, and the Obama Administration played a key role here in this massive economic revival from the depths of a near Depression. 

Below here are the common stock market closing prices of each of these 56 North companies at both the most recent date, and also at the date just before President Obama took office, as well as the percentage stock market price changes for this period of time.

Market Market Percentage

North Carolina Price Price Increase

HQs 10-11-12 1-16-09 (Decrease)

S&P 500 Index
1,432.84 850.12 69%
Dow Industrials Index
13,326.39 8,281.22 61%

Companies Headquartered in North Carolina

Culp High Point $11.95 $1.70 603%
Sonic Automotive Charlotte $19.29 $2.81 586%
Unifi Greensboro $13.34 $2.22 501%
Xerium Technologies Raleigh $3.50 $0.68 415%
Krispy Kreme Doughnuts Winston Salem $7.65 $1.56 390%
Polypore International Charlotte $35.48 $7.24 390%
Salix Pharmaceuticals Raleigh $39.90 $8.50 369%
Red Hat Raleigh $53.77 $14.82 263% Charlotte $16.00 $4.60 248%
RF Micro Devices Greensboro $3.67 $1.15 219%
VF Corp Greensboro $160.03 $56.13 185%
Hanesbrands Winston-Salem $32.31 $11.54 180%
Carlisle Charlotte $52.44 $19.94 163%
Old Dominion Freight Thomasville $29.48 $11.27 162%
Cornerstone Therapeutics Cary $5.15 $2.10 145%
Family Dollar Stores Charlotte $66.11 $28.40 133%
Biodelivery Sciences International Raleigh $6.65 $3.14 112%
CATO Charlotte $29.41 $13.99 110%
Tanger Factory Outlet Centers Greensboro $32.05 $15.35 109%
Reynolds American Winston-Salem $42.19 $20.36 107%
Targacept Winston Salem $4.78 $2.43 97%
Lorillard Greensboro $113.76 $59.97 90%
EnPro Industries Charlotte $36.68 $19.80 85%
International Textile Group Greensboro $0.05 $0.03 67%
SPX Charlotte $66.85 $40.84 64%
Newbridge Bancorp Lexington $4.66 $2.90 61%
BB&T Winston-Salem $33.20 $20.83 59%
Coca Cola Bottling Charlotte $69.27 $44.77 55%
Laboratory Corp America Burlington $93.29 $60.80 53%
Lowes Mooresville $30.77 $21.04 46%
Cree Durham $24.96 $17.93 39%
Highwoods Properties Raleigh $32.69 $23.81 37%
Bank of America Charlotte $9.34 $7.18 30%
Alliance One International Morrisville $3.26 $2.51 30%
Harris Teeter Supermarkets Matthews $36.72 $28.64 28%
Pozen Chapel Hill $6.27 $5.04 24%
Snyders-Lance Charlotte $25.30 $20.51 23%
Insteel Industries Mount Airy $11.83 $9.73 22%
BNC Bancorp High Point $8.50 $7.05 21%
First Citizens Bancshares Raleigh $167.30 $139.13 20%
Speedway Motorsports Concord $16.78 $16.07 4%
Ingles Markets Asheville $15.91 $15.62 2%
Martin Marietta Materials Raleigh $82.68 $88.79 -7%
Nucor Charlotte $39.01 $42.10 -7%
First Bancorp Troy $11.45 $15.64 -27%
Pantry Cary $13.50 $19.31 -30%
Pike Electric Mount Airy $7.97 $11.55 -31%
Trans1 Wilmington $2.59 $6.16 -58%
First South Bancorp Washington $4.80 $11.87 -60%
Yadkin Valley Financial Elkin $3.25 $11.77 -72%
Four Oaks Fincorp Four Oaks $1.65 $8.20 -80%
Triad Guaranty Winston-Salem $0.07 $0.42 -84%
Lime Energy Huntersville $0.66 $4.56 -86%
1st Financial Services Hendersonville $0.30 $6.74 -96%
Bank of the Carolinas Mocksville $0.17 $4.20 -96%
FNB United Asheboro $11.98 $325.00 -96%

Average Increase: all 56 North Carolina Corps


S&P 500 Index
1,432.84 850.12 69%
Dow Industrials Index
13,326.39 8,281.22 61%

It should be pointed out that the above earlier period stock price of FBN United has been adjusted to reflect the effect of a one-for-one hundred reverse stock split.

OK, so that now is eight of the US Battleground States down, and just several more yet to go.  So let's's the average stock market price increases during the Obama Administration for these eight states.....Ohio Corps up 161%, Florida Corps up 137%, Virginia Corps up 97%, Colorado Corps up 179%, Michigan Corps blowing them all away by being up 344%, Nevada Corps up 178%, Iowa Corps up 99%, and now North Carolina Corps also up 99%.  And all eight states had average stock market price increases that were substantially higher than the overall stock market increases for the same time frame.  Next.....on to New Hampshire.