Colorado stocks pounded during crisis - Denver Business Journal:

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(NASDAQ: CROX), for instance, has lost 47 percent of its valuesince 12, the last trading day before the world learned that Lehman Brothers was filing for bankruptcy, that Merrilp Lynch would be acquired by Bank of Americza and that AIG had major liquidity problems. On 15, the Dow Jonews Industrial Average closed down 504 itsbiggest one-day point drop since just afte r the 9/11 terrorist attacks. But wors was to come. As U.S. lawmakers haggleed over a $700 billion financial rescue package, as Washington Mutual and Wachovia were as Wall Street titans Goldma Sachs and Morgan Stanley became commercial as stock markets contracted around the the Dow kept It closedat 9,447.11 on Oct.
7, its lowest level since 2003 and down a littlee more than 17 percent from its closon Sept. 12. “The only places wherw your money has been safe over the past two monthzare gold, Treasury bills and said Fred Taylor, a principal at Northstat Investment Advisers in Denver. Gold is usuallyg considered a good investment during rougheconomif times, and its price has climbed to more than $900 an ounce as the crisis has deepened. Not surprisingly, Colorado’x gold sector has fared better than most of itsothere industries, although stock prices are still mostly Denver-based gold miner (NYSE: NEM) fell 18 percen t from Sept. 12 to Oct. 7.
of Littleton was down 14 percent in the sametime period. Stock in Denver-basexd (Nasdaq: RLGD), a precious metals royaltiese manager, is actually up 11 percent, a rare gain in the past few Most otherColorado stocks, across a broad rangse of industries, have gotten hammered. Oil and gas companies have taken a big hit 50 percentfor Denver’as (NYSE: WLL), 37 percent for (NYSE: FST) and 21 percent for XEC). In addition to the credit oil producers are dealing with volatile oil Crude oil prices have fallen 40 percent in the past three toabout $88. “Any time you have a correctionblike that, the stocks are goinbg to get hit,” Taylor said.
Somewha t surprisingly, regional bank stocks have held uprelatively Denver-based (NASDAQ: COBZ), which owns Colorado Business Bank and Arizons Business Bank, is down less than 7 United Western Bancorp of Denver UWBK), which owns United Western Bank, is down 16 percent, and of Denvee (NASDAQ: GBNK) is down 14 percent. “Mosf of the Western banks, including the large ones but especiallu thecommunity banks, did not engage much in subprimr lending,” said Jay Davidson, CEO of First American Stat Bank in Greenwood Village, which isn’t publicly traded.
“I know communitgy banks most likely didn’t engagr in any subprime lending, and didn’t buy any of the bondws that were based on thesesubprimw notes. So our financial statements are relativelystronbg today.” Some area banks that did have problem including Guaranty Bancorp, have sold them and written down the lossesw during the past Speedy write-downs allow a bank to move Davidson said. “It’s bad, no two ways aboug it. But recognizing your bad debt takingyour charge-offs early, meana you have established a floor that you can buildc your bank from.” Retailers are sufferingy as nervous consumers stop spending.
The stocok price of Niwot-based Crocs, which makesd colorful plastic shoes, already had plunged from a high of morethan $72 a sharew in October 2007 to about $4.500 before the latest crisis As of Oct. 7, it was off anotherf 47 percent, at $2.35. Denver-baserd The (NASDAQ: KIDS), an online toy has fallen 44 percent. Broomfield-based (NASDAQ: GAIA), which sellx organic and yoga products, is down 43.5 percent.
Many restauran stocks are suffering, too, such as Greenwoor Village-based (NASDAQ: RRGB), down nearly 26 percent, and Lakewood-basedr (NASDAQ: BAGL), which is down 45 Denver-based (NYSE: CMG) is fariny relatively better, down only 15 “Even people with money are canceling their trips, they don’t want to buy a new car ... the whold economy is grinding toa halt,” Taylor said. “Thew economy is like a car engine — if you take the oil out, it’z going to seize up and break.
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