Retailers Enjoy Big Bounce

Led by a remarkable rebound by book retailers, the Publishers Weekly Stock Index jumped 23.9% in the first six months of 2009, easily beating the Dow Jones Industrial Average, which declined 3.7% in the January through June period. Borders Group, whose stock spent the end of 2008 trading below $1, had the best performance on the PWSI with its share price skyrocketing 820%, as investors expressed more confidence that the company has a chance to successfully turn around its operations. Books-A-Million's financial performance in the first quarter of 2009 has been better than its larger rivals', and investors rewarded BAM by bidding up its stock price by 178.8% in the first half of 2009. Hastings Entertainment has also gotten off to a relatively good start, and its stock price moved ahead by 159%.

Franklin Electronic Publishers' stock price received a positive jolt earlier this month when its management offered to buy the company for $2.35 per share, resulting in a 159% jump in FEP's stock price. Amazon has the highest stock price among all PWSI companies, and its share price rose 63.1% in the first six months as the e-tailer appears to be in a better position to successfully ride out the recession than most of its competitors.

Among the five losers in the six months were the only two printers on the PWSI, as the lagging economy continues to dampen demand for their services.