Your Source for Up-To-Date News and Research on the Collision Repair Industry

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

This article originally appeared in the March 2008 Issue of INSIGHT

Snow Job

Winter has been harsh this year for many areas of the U.S. Even here in Cleveland, INSIGHT’s stomping ground, the home of “lake effect snow,” many residents finally realized that there are indeed some snowfalls that even we cannot plow through. While gazing out at the huge white snowdrifts in my yard, and at the mounting red ink blanketing our industry related stock chart this month, I hoped to make some sense of this month’s stock report.

Well, no great words of wisdom came to me, and I refuse to give you a snow job today. The Dow has dropped like a rock during the past thirty days a few times, only to bounce back. What does this mean? My guess is that Wall Street will be a cautious place for at least the first half of 2008. Whether circumstances can come together to let us call the next few months a time of adjustment or a period of recession I cannot predict.

I can tell you that the price of a gallon of gasoline at the pumps has hit, on average nationwide, a hefty $3.22 this week, and will continue to rise.

Only a handful of our Collision Industry-related stocks and one insurer did not lose ground this month from their January 1 mark. DuPont is still hanging on to a slight increase in its per share price, about three percent higher YTD, and Japan-based Millea reached an almost 12 percent rise per share.

Much to my surprise, our national car dealer consolidators had a pretty good month. AutoNation, at just over $15 per share, and CarMax, at nearly $19 per share, were down just a hair from their New Year postings - a considerable upturn from last month’s numbers. Sonic Automotive and the Penske Automotive Group both had stock prices higher per share than on January 1, up just a hair, but really up.

All the other industry-related stocks in our chart have posted losses in share prices in the first two months of 2008.

Our auto insurers continue to struggle at the New York Stock Exchange. SAFECO, with a per share stock price of just under $48, dropped nearly 14 percent in January. Allstate is down almost 12 percent YTD, and Travelers is off its initial mark by about 11 percent. Progressive struggled back somewhat this month, but the insurer’s per share stock price is still not back up to its beginning of 2008 posting of just over $19.

Claims statistics are continuing to indicate an increase in the number of collisions across the nation. Collision repair facilities in the U.S. may be getting busy, at least until warm weather. Then, the new worry will be if Americans will cut back on vacation road trips because of ever-rising fuel costs.

-Charles Baker-

Feedback

Have a comment about this article? Send Email to Charles Baker, INSIGHT's Publisher

SUBSCRIBERS-ONLY Today's News INSIGHT This Month INSIGHT Archives Survey Center Letter to the Editor

Business Tools Subscription Information CSI Reporting Financial Analysis IRS Audit Guide