Third quarter unkind to Arkansas-based share prices

That clunk you may have heard was the sound of the weak national economy falling hard on the share prices of the 15 publicly held companies based in Arkansas.

Of the 15 stocks, only four have prices higher than their Jan. 3 closing price. And the gainers saw small moves upward compared to the losses of the other 11 shares.

And nevermind that all 15 of the companies reported positive second quarter net income — a rare feat in the past few years — because lackluster job figures, concerns about European banks, concerns about U.S. creditworthiness and weak economic data from the once red-hot Chinese economy dragged all three major markets down in the third quarter.

The one technicality with the 15 Arkansas stocks is with Little Rock-based Bank of the Ozarks. The bank had a 2:1 market split on Aug. 17, which pushed the share price from $44.81 on Aug. 16 to close at $22.75 on Aug. 17. However, the shares ended the third quarter at $20.93, down 8% from the post-split closing price.

NATIONAL MARKET MOVES
According to market historians, the third quarter was the worse in terms of major index decline since the late 2008 credit crisis. The Dow Jones Industrial Average (DJIA), NASDAQ Composite and S&P 500 all fell below their January opening levels, and well below their June 30 close.

DJIA
Sept. 30: 10,913.38
June 30: 12,414.34
Jan. 3: 11.670.75

NASDAQ Composite
Sept. 30: 2,415.40
June 30: 2,773.52
Jan. 3: 2,691.52

S&P 500
Sept. 30: 1,131.42
June 30: 1,320.64
Jan. 3: 1,271.87

ARKANSAS DECLINERS
Arkansas based companies involved in energy, trucking and information took the biggest share price hits during the third quarter.

El Dorado-based Murphy Oil saw its shares close the quarter at $44.16, down 41.97% compared to the Jan. 3 closing price of $76.11. Investors have pulled back from the stock because of global economic slowdown fears and the company’s lowered guidance on third quarter earnings. Murphy President and CEO David Wood said July 27 that third quarter net income will fall in the $1.05 to $1.15 range. The market had been more optimistic, with the consensus estimate on third quarter earnings set at $1.71.

The fickle freight market has not been a friend to Fort Smith-based Arkansas Best Corp. — parent company of ABF Freight System — and Van Buren-based USA Truck Inc. Arkansas Best shares closed the quarter at $16.15, down 41.1% compared to the Jan. 3 closing price. USA Truck shares closed the quarter at $7.76, down 41.8% compared to the Jan. 3 closing price.

Little Rock-based Acxiom, which has endured through leadership changes this year, has so far been unable to convince the marketplace that its database managing and marketing systems have growth potential. The company’s share price fell to $10.64 at the end of the third quarter, down almost 40% from its Jan. 3 closing price of $17.63.

ARKANSAS GAINERS
In what continues to be an impressive turnaround, Little Rock-based Dillard’s ended the third quarter at $43.48, up 11.97% compared to its Jan. 3 closing price. In early 2009, the share price was doing good to keep its price above $3. But aggressive actions to cut costs, change inventory and be more price competitive have helped improve financials for the upscale retailer.

Springdale-based Tyson Foods has struggled in recent years to manage rising commodity costs, a leveraged balance sheet and on again, off again foreign exports. A return of a few executives who learned the business from the late Don Tyson helped keep the company in the black. The share price of one of the world’s largest meat processing and distribution companies ended the quarter at $17.36, up 5.72% from the Jan. 3 closing price.

Bentonville-based America’s Car Mart, which continues to open new “buy here, pay here” used car dealerships, has seen its revenues grow during what has been called a jobless economic recovery. It’s same-store sales were up 5.2% during the second quarter. Car Mart share prices closed the third quarter at $29.02, just above the $27.83 closing price on Jan. 3.

Shares of thinly traded Deltic Timber barely pulled off a share price gain between January and September. The El Dorado-based real estate and timber company has managed to generate positive net income despite a slowdown in timber sales. The share price closed the quarter at $59.68, just a cut above the $59.10 closing price of Jan. 3.