Davidson 99 firms exceed Dow, S&P

Companies represented by the Northwest regional Davidson 99 stock index outperformed the Dow Jones Industrial Average and the S&P 500 in the second quarter ending June 30.

The regional index, produced by D.A. Davidson & Co. investment firm, was strengthened in part by its exposure to the Pacific Northwest and Rocky Mountain region's consumer and technology markets, said company analysts. For example, Microsoft saw its stock price increase 28 percent during the quarter while Starbucks jumped 18 percent.

For the second quarter, the index showed an overall 20 percent gain, compared with the Dow Jones, which was up 11 percent in the same period. The index also outperformed the S&P 500, which was up 15 percent.

Top gainers included Dendreon Corp., up 495 percent; Lithia Motors, up 311 percent; and Coldwater Creek, up 143 percent.

"Markets overall seem to be rebounding slowly … the broad diversification and strength of the economy in the Pacific Northwest and Rocky Mountain regions have helped the Davidson 99 outperform the Dow," said Mark Corcoran, vice president, senior private client group research. "It was a very strong comeback quarter for oversold public companies. Many stocks, which traded at all-time low valuations, have returned to reasonable levels since March," he said.

D.A. Davidson, based in Great Falls, Mont., launched the index on Jan. 1, 2004. Since then, the index has outperformed the Dow Jones and the S&P, reporting an overall loss in value of 2.2 percent, compared with the Dow Jones, which is off by more than 19.2 percent, and the S&P, down 17.3 percent.

Worst performers in the most recent quarter included Myriad Genetics, down 22 percent; Coinstar, off 18 percent; and Skywest, down 18 percent.

The index is composed of 99 stocks from companies operating within seven Northwest and Rocky Mountain states: Colorado, Idaho, Montana, Oregon, Utah, Washington and Wyoming. The securities were selected based on market capitalization, importance within their sectors and index diversification.

Among the 99 stocks are Plum Creek Timber, Blue Nile, Nautilus Group, Nordstrom, Micron, Boeing and Nike.