Tulsa Index soars 15.6 percent in 2012
BY LAURIE WINSLOW World Staff Writer
Friday, January 04, 2013
1/04/13 at 9:22 AM
The Tulsa Index, coupled with two national stock gauges, logged impressive gains in 2012 despite a volatile year.
While the Tulsa Index rose 15.6 percent for the year, the Standard & Poor's 500 - a composite of the nation's largest companies - rose 16 percent and the Russell 2000 - an index of smaller companies - gained 16.3 percent.
The Tulsa Index consists of companies with headquarters or other significant operations in the Tulsa World's readership area.
"During 2012, the U.S. stock market had a surprisingly good year despite a contentious pre- and post-U.S. election environment and continued financial crisis worries out of Europe as well as the market's year-end obsession with the fiscal cliff. Even with all of that, the U.S. equity markets surged and investors cheered throughout 2012," said Jake Dollarhide, CEO of Longbow Asset Management Co.
Dollarhide, who tracks the Tulsa Index, noted that the S&P 500 primarily outperformed the local index last year because the technology and the financial sectors, its two largest components, had good years. The financial sector, including big banks and insurance companies, had an incredible resurgence in 2012 as an improving economy helped banks' deposits and loan business, he said.
Bank of America Corp. - the Tulsa Index's top performer for the fourth quarter and also one of the year's biggest gainers - saw its stock price rise 109.9 percent in 2012.
But the Tulsa Index's energy sector weighting - its largest - saw mixed results last year, said Dollarhide, noting that 19 of the 21 companies that posted negative returns in the local index were from that industry.
As for what lies ahead, Dollarhide said that historically the stock market performs well during the first year of a president's second term. Getting past the "fiscal cliff" and making the right moves to continue full economic expansion, coupled with less economic turmoil in Europe and an improving job and housing market, could all point to a banner year for stocks, he said.
Whirlpool Corp., which saw its stock price gain 120.2 percent last year, was the Tulsa Index's top performer in 2012. It was followed by HollyFrontier Corp., up 113.9 percent; Bank of America Corp., up 109.9 percent; Dillard's Inc., up 98.3 percent; and Southwest Bancorp Inc., up 87.9 percent.
Whirlpool has a strong brand name, Dollarhide said. The company was coming off a poor performance in 2011 and negative earnings in which it saw its share price fall from $90 to under $50. But 2012 was strong for the company as an improving economy and housing market helped drive appliance sales, he said.
The index's bottom performer for both the year and fourth quarter was Syntroleum Corp., whose shares lost 58.3 percent and 47.4 percent, respectively. Other low performers for the year included Parker Drilling Co., down 35.8 percent; Halcon Resources Corp., down 26.3 percent; Chesapeake Energy Corp., down 24.1 percent; and U.S. Cellular Corp., down 19.2 percent.
"Syntroleum can't get out of its own way," Dollarhide said. "There has been a lot of legitimate excitement surrounding their partnership with Tyson Foods, to use their energy process to turn chicken fat into jet fuel."
There is always hope for Syntroleum - probably as much for the company now as there was many years ago when it went public, Dollarhide said. On the other hand, "Syntroleum can't get any momentum, and it just seems highly likely that short of insolvency, it may trade under $1 a share in irrelevancy for years and years to come."
For the fourth quarter, the Tulsa Index rose 0.5 percent compared to a 1.9 gain for the Russell 2000 and a 0.4 percent loss for the S&P 500.
Of the 65 companies in the Tulsa Index, 44 posted positive returns for the quarter. Three of the quarter's top performers - Bank of America, Whirlpool, and Dillard's - also were among the year's top performers.
Bank of America's stock price registered the highest quarterly gain at 31.6 percent. It was followed by Brunswick Corp., up 28.8 percent; Whirlpool, up 23.4 percent; Dillard's, up 22.8 percent; and Tyson Foods Inc., up 22.1 percent.
Following Syntroleum as the quarter's bottom performer were Spirit AeroSystems Holdings Inc., down 23.6 percent; Laredo Petroleum Holdings Inc., down 17.4 percent; Devon Energy Corp., down 13.7 percent; and Chesapeake Energy, down 11.5 percent.
Tulsa Index's top stock performers for 2012
1. Whirlpool Corp. +120.2 percent
2. HollyFrontier Corp. +113.9 percent
3. Bank of America Corp. +109.9 percent
4. Dillard's Inc. +98.3 percent
5. Southwest Bancorp Inc. +87.9 percent
Top performers for fourth quarter
1. Bank of America +31.6 percent
2. Brunswick Corp. +28.8 percent
3. Whirlpool Corp. +23.4 percent
4. Dillard's Inc. +22.8 percent
5. Tyson Foods Inc. +22.1 percent
List of Annual Percentage Return for All Stocks in the Tulsa World Local Stock Index Ended Dec. 31, 2012 (In Descending Order):
WHR Whirlpool Corp. 120.2%
HFC HollyFrontier Corp. 113.9%
BAC Bank of America Corp. 109.9%
DDS Dillard's Inc. 98.3%
OKSB Southwest Bancorp Inc. 87.9%
BC Brunswick Corp. 61.4%
RRMS Rose Rock Midstream 60.0%
PSX Phillips 66 57.9%
SONC Sonic Corp. 54.7%
VMI Valmont Industries Inc. 51.5%
SEMG SemGroup Corp. 50.0%
WG Willbros Group 46.0%
TNH Terra Nitrogen Co., L.P. 37.7%
JPM JPMorgan Chase & Co. 36.2%
LVLT Level 3 Communications Inc. 36.0%
MMP Magellan Midstream Partners L.P. 31.5%
WMB Williams Cos. Inc. 26.6%
LEG Leggett & Platt Inc. 24.0%
NGL NGL Energy Partners LP 23.1%
MTRX Matrix Service Co. 21.8%
HON Honeywell International Inc. 19.9%
KMB Kimberly-Clark Corp. 19.1%
JKHY Jack Henry & Associates Inc. 18.3%
T AT&T Inc. 17.5%
ROK Rockwell Automation 17.2%
WMT Wal-Mart Stores Inc. 17.0%
NE Noble Corp. 16.9%
TIS Orchids Paper Products Co. 16.4%
BANF BancFirst Corp. 15.9%
VZ Verizon Communications 13.2%
COP ConocoPhillips 9.2%
MCEP Mid-Con Energy 9.0%
AEP American Electric Power Co. Inc. 8.2%
IBM International Business Machines Corp. 5.9%
LUK Leucadia National Corp. 5.7%
BA Boeing Co. 5.2%
CVX Chevron Corp. 5.1%
AAON AAON Inc. 3.7%
BOKF BOK Financial Corp. 3.6%
CBSH Commerce Bancshares Inc. 2.9%
OGE OGE Energy Corp. 2.2%
BP BP plc (ADR) 2.0%
OKE ONEOK, Inc. 1.5%
IBOC International Bancshares Corp. 0.6%
OKS Oneok Partners LP -2.2%
UNT Unit Corp. -2.9%
AHGP Alliance Holdings GP L.P. -3.1%
HP Helmerich & Payne Inc. -3.5%
TSN Tyson Foods Inc. -4.6%
AEY ADDvantage Technologies Group, Inc. -5.2%
XEC Cimarex Energy Co. -6.1%
WPZ Williams Partners L.P. -14.2%
BHI Baker Hughes -14.9%
DVN Devon Energy -14.9%
EDUC Educational Development -15.0%
OXY Occidental Petroleum Corp. -16.1%
WPX WPX Energy -18.1%
ARLP Alliance Resource Partners L.P. -18.1%
SPR Spirit AeroSystems Holdings Inc -18.3%
LPI Laredo Petroleum -18.6%
USM United States Cellular Corp. -19.2%
CHK Chesapeake Energy -24.1%
HK Halcon Resources -26.3%
PKD Parker Drilling Co. -35.8%
SYNM Syntroleum Corp. -58.3%
Source: Longbow Asset Management
Original Print Headline: Tulsa Index impresses
Laurie Winslow 918-581-8466
Bank of America's shares more than doubled in 2012. Bloomberg file
Refiner HollyFrontier gained 114 percent. SCOTT CORNELIUS/Courtesy
Appliance maker Whirlpool rebounded from a poor 2011. Tulsa world file