Saturday, March 14, 2015

Washington DC Companies Stock Market Prices Up 493% Since March 6, 2009

Former US Fed Chair Ben Bernanke will be delivering a key economic presentation at the University of Southern Indiana in Evansville, Indiana on March 23, 2015.  It is open to the public and free of charge.  

Thus, as a backdrop for this upcoming speech and continuing a much deserved tribute to Bernanke's key role in helping the US avoid a Deep, Prolonged Financial Depression, I think it would be helpful to update just what has been going on with Stock Market Prices for Companies in each US State since March 6, 2009, the lowest point for the overall US Stock Market resulting from the aftershocks of the horrific late 2008 US Financial Meltdown, through the most recent date March 13, 2015......a roughly six year period of time.

Long-term Audited Earnings From Continuing Operations Under US Generally Accepted Accounting Principles (GAAP) drive Long-Term Changes in Stock Market Prices.  These Company Earnings crashed with the late 2008 US Financial Meltdown and thus the linked Stock Market Prices of the related Companies also crashed.

But since the 2008 US Financial Meltdown, these Earnings have been consistently exceptional and thus the Stock Market Prices of the related Companies have also consistently exploded upwardly in the past six years.

This is the dilemma faced by the current US Fed ..... raise US interest rates or continue former US Fed Chair Ben Bernanke's economic policies which have continued to spur Company Earnings and thus also Company Stock Market Prices.

I think the current US Fed should tweak Bernanke's economic policies some to try to more effectively deal with income and wealth inequality, but why in the world would you want to alter them significantly since they have been so incredibly successful?

And the US Congress, and frankly also US Companies,  just have to do a much better job addressing income and wealth inequality.

Lobbying firm FTI Consulting recently moved its headquarters from Florida to DC thereby weighing negatively on the below Washington DC Companies overall average stock market price change.

Below here are the 12 Washington DC Headquartered Companies with Stock Market Caps now above $100 mil and which have had their common stocks trading from December 31, 2007, or early in 2008 for companies first going public then, through the most recent date March 13, 2015, or the date the Companies were sold, if they were sold since the beginning of 2014.

Market Market Market

Price Price Price

% % %

Change Change Change

Market Market Market 3-6-09 12-31-07 12-31-07

Price Price Price to to to
Washington DC HQs
3-13-15 3-6-09 12-31-07 3-13-15 3-6-09 3-13-15

$s $s $s

Federal Agricultural Mortgage Washington  DC       32.16        2.48      26.32 1197% -91% 22%
Vanda Pharmaceuticals Washington  DC       10.37        0.80        6.88 1192% -88% 51%
CoStar Group Washington  DC      191.91      25.32      47.25 658% -46% 306%
Fannie Mae Washington  DC         2.70        0.36      39.98 649% -99% -93%
The Advisory Board Company Washington  DC       53.21        7.12      32.10 647% -78% 66%
DuPont Fabros Technology Washington  DC       32.12        5.34      19.60 501% -73% 64%
Cogent Communications Group Washington  DC       34.86        6.04      23.71 477% -75% 47%
Danaher Washington  DC       85.20      24.66      43.87 246% -44% 94%
Graham Holdings Washington  DC   1,079.63     322.50     791.43 235% -59% 36%
Washington REIT Washington  DC       26.79      15.60      31.41 72% -50% -15%
Liquidity Services Washington  DC         9.69        6.02      12.90 61% -53% -25%
FCI Consulting Washington  DC       36.53      45.75      61.64 -20% -26% -41%

Average Equal Company Weighted % Change all 12 Washington DC Companies
493% -65% 43%