November 7, 2007

Local stocks: Time to buy ... or to cry

The four-word secret of success on Wall Street ("Buy low, sell high.") resonates when looking at the stocks of local companies today. It's either time to buy, or to cry.

Stocks of six of eleven companies with substantial operations in Racine came within pennies of their 52-week lows Wednesday (or set new lows), as the overall market tanked with the 30-stock Dow average falling 361 points, a drop of 2.64%.

The six local companies sitting at the bottom of their 52-week valuations are: Associated Banc. Corp., Kohl's Corporation, Lee Enterprises, Marshall & Ilsley Corp, Modine Manufacturing and TCF Financial Corp. The most hard-hit yesterday was TCF, which fell 7.97%.

Year to date, since Jan. 3, seven of our companies show declines: Lee Enterprises (Journal Times), is down 54.7%; and Marshall & Ilsley Corp. (M&I Bank), is off 39.66%. TCF Financial Corp., Kohl's Corporation and Associated Bank Corp. all have lost about 25%. Modine Manufacturing is down 16.9% and WI Energies is off a scant 1.5%.

Racine has two solid winners this year: CNH Global, maker of Case tractors, is up 128%, continuing a climb that began in 2003; and Twin Disc is up 76.2% although off its July high by 23%. Bringing up the rear, but still in the black, are Johnson Outdoors, up a solid 16.3% and Fiserv just holding its own, up .99%.

Still, as Scarlet O'Hara reminded us, "Tomorrow is another day." Your results may vary.

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