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Friday, October 3, 2008
Univest, Penn Treaty are best and worst local stocks for Q3

Even the most challenging stock markets produce some winners among all the losers.

With the end of the third quarter, it’s a good time to see what worked and what didn’t over the summer.

To come up with my list, I screened the stocks of locally based companies that were trading above $3 as of June 30.

I was surprised to see that six companies saw their stock prices rise more than 50 percent during the quarter. And the biggest gainer was a bank holding company.

Shares of Univest Corporation of Pennsylvania rose 86 percent over the summer. The Souderton company did name a new CEO for its Univest National Bank & Trust Co. Aug. 28, but that doesn’t appear to be why the stock turned in a strong performance. Let’s chalk it up to a suburban bank that has stuck to its knitting.

The other five big gainers were: Philadelphia Consolidated Holding Corp. (72 percent); Dorman Products Inc. (55 percent); Harleysville National Corp. (52 percent); Ikon Office Solutions Inc. and Rohm & Haas Co. (both up 51 percent).

Three of those five are being acquired by bigger companies. Dow Chemical Co. is buying specialty chemical maker Rohm & Haas for $15 billion. Tokio Marine Holdings Co. is buying Philadelphia Consolidated, a Bala Cynwyd property and casualty insurer, for $4.4 billion. Ricoh Co. Ltd. is buying Ikon, a Malvern office equipment supplier, for $1.6 billion.

Harleysville National, on the other hand, is an acquirer, having bought Willow Financial Inc., another local bank. Often buyers see their stock prices fall. Not this time.

Only two local stocks fell more than 50 percent.

The worst performer was Penn Treaty American Corp., an Allentown insurer. Its shares fell 69 percent to close at $1.43 on Sept. 30. The retreat accelerated after Penn Treaty disclosed on Aug. 21 a dispute with a reinsurer of policies it issued before 2002.

RCM Technologies Inc., of Pennsauken, declined 59 percent to close at $2.21 on Sept. 30. The provider of information technology and engineering consulting and staffing services said the economic slowdown has been challenging its business.

Posted by Mike Armstrong @ 2:20 AM  Permalink | File Under: Investing, Markets | Post a comment
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About Mike Armstrong

Mike Armstrong, a business editor and writer for nearly two decades, is the Inquirer's business columnist and PhillyInc blog editor.

Contact Mike via e-mail or at 215-854-2980
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