Why Indiana stocks are lagging

March 10, 2010
Back to TopCommentsE-mailPrintBookmark and Share

Major stock indexes have enjoyed nice run-ups in the past year, but Indiana stocks aren’t keeping pace.

The Dow industrials are up nearly 60 percent since the trough in March 2009, and the S&P 500 has fared even better. The Bloomberg index of Indiana companies, though, is only 40 percent higher.

What gives?

Kevin Schmidt, executive vice president of City Securities Corp. in Indianapolis, says things aren’t as bleak as they look. As is usually the case during downturns, Indiana stocks didn’t sustain harsh shellackings. So they’re not bouncing back as quickly.

Schmidt also notes Indiana is heavily concentrated in financial and basic industries, where shares are struggling.

Consider banks. Several institutions in the Bloomberg index—First Merchants, Integra and Old National included—are midsize players. Investors are avoiding the class like the plague because it’s assumed they’re riddled with rotten real estate loans. Depending on the bank, that may or may not be true, but everyone is tarred nevertheless.

“They’re not bad companies,” Schmidt says of the Indiana banks. “They’re not going to go broke.”

Other Hoosier stalwarts, such as Eli Lilly and Co. and WellPoint Inc., are treading water.

The mediocre Indiana index also hides standouts. Interactive Intelligence has ridden the national swell in tech shares. Duke Realty and Simon Property Group have rebounded despite being in real estate. Cummins shares have nearly tripled.

Indianapolis-based Emmis Communications Inc., once so out of flavor that its shares might have been mistaken for dead, is booming, at least compared against itself. An investment in Emmis last summer would have reaped a four- or fivefold return by now.

Yet another factor hurting Bloomberg’s Indiana index is its weighting toward pricier shares. The state has a number of stocks trading at lower levels that have done remarkably well. Finish Line is one.

What are your thoughts about these stocks?

Also, to what extent should President Obama get the credit? The markets crumbled for a few months after his inauguration, but they’re back.

ADVERTISEMENT

Post a comment to this blog

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
  1. I keep wondering why I keep hearing about this problem of corporations leaving America, and I never hear a reasonable proposal to lower corporate tax rates and raise personal rates on income from capital gains and dividends, especially for high earners. It is just too simple of a solution for Congress to embrace?

  2. Are you financially down and you need money to settle your dept,or you need money to start up a business or to invest on a huge business,we also offer Loans to individuals, Firms and cooperate bodies at low interest rate , loan terms determinant,Loan amount between the sum of $5,000.00 to $100,000,000.00. US Dollars And Euro. Loan for developing businesses a competitive edge/ business expansion. We Offer The Following Kinds Of Loans. Personal Loans (Secure and Unsecured) Business Loans (Secure and Unsecured) Consolidation Loan FIRST INFORMATIONS NEEDED ARE: BORROWER’S DATA’S INFORMATION,FILL AND RETURN FOR QUICK START UP PROCESS. Name:_________ Last Name:_________ Age:_________ Contact Address:_________ Country:_________ Amount Needed as Loan:_________ Loan Duration:_________ Phone Number__________ Monthly Income/Yearly Income:_________ Purpose for Loan:_________ Occupation:_________ How Soon is Loan Needed__________ Email via: albertbrownfirm@outlook.com

  3. is a disaster. SR37 already needs to be built to interstate standards between 465 and SR144. Southport Road is a mess each morning and evening.

  4. Bass Pro Shops would be good for the mall as well as a Giant Eagle Market District or a Jungle Jim's International Market Place grocery store like the one near Cincinnati Ohio.A Disney quest indoor theme park would be good.An Academy outdoor store would be good too.Indoor Circus shows and magic shows would be good as well. A casino with sports bar would be good.A Disney theater inside that shows movies and Broadway shows would work.Nashville Tennessee concert shops with indoor neon lights would be good.How about a theater that shows travel shows and theme parks. A train store would be good.How about a giant toy store with high tech video games.

  5. This development is in addition to Allpoints Midwest 5, Aitrtek, a recent FedEx and more in Plainfield. Greenwood and Brownsburg also have similar projects.

ADVERTISEMENT