Magazine article Black Enterprise

Standing on Shaky Ground

Magazine article Black Enterprise

Standing on Shaky Ground

Article excerpt

Green's portfolio produces spotty returns

The market may have recovered from last year's seismic third quarter, but some stocks are still a bit queasy, Just ask portfolio manager Isaac Green of Loomis Sayles in Bloomfield Hills, Michigan. Out of the portfolio of five stocks he recommended last year, four have slumped in the erratic environment.

Shares of Carmike Cinemas (NYSE: CKE), a movie chain in Columbus, Georgia, plunged 50.4% since his recommendation. Competition from other movie chains and poor attendance hammered earnings and cleaved the stock price. A weak year for Hollywood and the emergence of multiplex theaters hurt trends in ticket sales, says Green. But he still finds the stock attractive. "Many of the factors that hurt the shares were temporary," says Green. "Carmike Cinemas is an exclusive operator in 62% of its market and dominant in 81% of its market."

Sears, Roebuck & Co. (NYSE: S) also proved to be a disappointment. Over the past year, shares of the No. 1 U.S. department store fell 17.4%. By December, the Hoffman Estates, Illinois, concern warned that sluggish clothing sales would result in lower than expected profits. The company's shares tumbled 3.5% the day management made the announcement.

Pharmaceutical maker American Home Products (NYSE: AHP) fell 25.9% since Green's last observation. And shares of Hasbro (NYSE: HAS) declined by 20.6% over the same period. The Pawtucket, Rhode Island, toy-maker recently acquired Tiger Electronics, which produces the popular Furby. …

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