Industry Stocks Jump in 2006

by Staff -- Publishers Weekly, 1/8/2007

With winners outnumbering losers by 13 to eight, the Publishers Weekly Stock Index rose 10.4% in 2006, rebounding from a 1.3% decline in 2005. The rise in the stock prices on the PWSI was aided by the overall lift in the stock market last year, including the 16.3% increase posted by the Dow Jones Industrial Average.

The biggest gainer in the year was Books-A-Million, whose stock price jumped more than 134%, driven by a solid financial performance and an aggressive stock buyback program. BAM's 2006 closing price of $22.68 per share was higher than that of Borders Group, whose stock price managed to rise 3.1%, to $22.35, despite the retailer lowering its financial projections for the year. Several companies that posted large gains in 2006 rebounded from declines in 2005, including Marvel, which was off 20% in 2005, and Scholastic, whose stock price was down nearly 23% in 2005. Pearson's stock price finally gained some traction last year, up 27.2%.

MediaBay and Advanced Marketing Services had the largest declines last year. AMS's stock price had been trading just under $3 and tumbled further after it filed Chapter 11. MediaBay's problems switching from distributing audiocassettes to digital audio downloads made it a penny-stock for most of 2006.