Most Arkansas-based stocks down in first half of 2011

Share prices of nine of 15 Arkansas-based companies fell in the first half of 2011, an unfortunate majority considering that the three major stock market indices recorded gains in the period.

At the end of 2010, 13 of 16 Arkansas-based companies reported share price gains for the year. The stock of Fort Smith-based Baldor Electric Co. was delisted following a buyout of the company in early 2011 by Zurich-Switzerland-based ABB.

RETAIL MOVERS
The big winner with respect to share price gains was Little Rock-based Dillard’s (NYSE: DDS), with a Thursday close of $52.14 up 34.27% over the Jan. 3 close of $38.83.

Dillard’s share price gain is even more remarkable considering that many retail analysts predicted bankruptcy or sale for the retailer in late November 2008 when the share price fell to $2.78. Since that that time, the stock price has risen 1,775%. Or, in other words, 1,000 shares purchased for $2,780 in November 2008 would be worth $52,140 today.

Another gainer in the retail sector was Bentonville-based America’s Car Mart. Shares (NASDAQ: CRMT) of the buy-here, pay-here used car dealer closed Thursday at $33, up 18.5% from the Jan. 3 close of $27.83. The company reported third quarter net income of $5.69 million compared to $6.28 million one year ago. Revenues for Car-Mart increased 10.5% to $92.6 million during the quarter that ended Jan. 31, 2011 with same-store sales up a solid 5.3%.

However, the king of the retail hill continues to struggle. Shares of Wal-Mart Stores Inc. (NYSE: WMT) closed Thursday at $53.14, down from the Jan. 3 close of $54.56. The Walmart U.S. division of the global retail giant has been unable to gain traction, posting its eighth consecutive quarterly decline in comparable store sales during the quarter ended April 30.

The Wal-Mart share price has been relatively flat since peaking in late 1999. During the first decade of the new century, the share price has not been able to push above $60.

TRUCKING, TRANSPORTATION
It should come as no surprise that among the four publicly held trucking-transportation companies based in Arkansas, only the one company that has diversified away from being a pure trucking company saw a share price gain in the first half of 2011.

Shares of J.B. Hunt Transport Services (NASDAQ: JBHT) closed Thursday at $47.09, up 12.49% compared to the Jan. 3 close of $41.86.

The Lowell-based transportation company now generates almost five times more revenue from its intermodal segment ($577 million in the first quarter of 2011) than its trucking segment ($119 million in the first quarter). The company posted first quarter income of $50.1 million, and ended 2010 with net income of $199.617 million.

Fort Smith-based Arkansas Best Corp., Tontitown-based P.A.M. Transportation and Van Buren-based USA Truck Inc. continued in the first half of 2011 to struggle with high fuel prices and a slow growth nationwide in freight tonnage.

Arkansas Best Corp., parent company of ABF Freight System, posted a first-quarter 2011 net loss of $12.8 million — extending to 10 the number of consecutive quarters the trucking company has posted a loss. However, the loss was an improvement over the $21.4 million loss in the first quarter of 2010. ABF shares (NASDAQ: ABFS) closed Thursday at $23.73, down from a Jan. 3 close of $27.42.

P.A.M. Transportation ended its first quarter with a $1.978 million loss compared to a $315,444 loss in the same period of 2010. The company, which lost $654,000 during fiscal year 2010, cited rising fuel costs, harsh winter and driver recruitment and retention for the loss. P.AM. shares (NASDAQ: PTSI) closed Thursday at $9.87, down from the Jan. 3 close of $11.56.

USA Truck posted a first quarter 2011 net income loss of $2.7 million compared to a net loss of $3 million in the 2010 quarter. Rising fuel costs, according to the company, resulted in a $2.3 million hit to the bottom line during the quarter. Company shares (NASDAQ: USAK) closed Thursday at $11.30, down from the Jan. 3 close of $13.34.

MAJOR MARKET MOVES
The Dow Jones Industrial Average, NASDAQ Composite and S&P 500 were up in the first half of 2011.
• DJIA
June 30: 12,414.34
Jan. 3: 11.670.75
6.37%

• NASDAQ Composite
June 30: 2,773.52
Jan. 3: 2,691.52
3.04%

• S&P 500
June 30: 1,320.64
Jan. 3: 1,271.87
3.85%