The Best (And Worst) Third-Quarter Channel Stocks4:00 PM EST Tue. Oct. 02, 2012
Most channel companies made small, but positive, gains on Wall Street in the third quarter, with eight of the 12 companies tracked by CRN posting increases in their share price for the three-month period ended Sept. 29. Here's a look at the third-quarter performances. By comparison, the Dow Jones increased 4.3 percent in the quarter, while the Nasdaq was up 6.3 percent.
Sept. 28, 2012: $15.23
June 29, 2012: $17.47
There was no love for the Santa Ana, Calif.-based distributor from investors this summer. The stock started falling after hitting $17.55 on July 2 and reached a low point of $14.46 on Aug. 2. It rebounded to close at $16.64 on Sept. 14 before losing another $1.41 the last two weeks of the quarter. All that despite the company increasing SMB credit lines to some VARs in August under the leadership of CEO Alain Monie.
Sept. 28, 2012: $45.25
June 29, 2012: $48.17
Tech Data shares had reached a high of $52.15 on Aug. 20, but they fell nearly $3 per share the following day after Bob Dutkowsky, CEO of the Clearwater, Fla.-based distributor, blamed less-than-expected results on pricing pressure in the Americas and Europe.
Sept. 28, 2012: $29.09
June 29, 2012: $30.86
Avnet shares fell almost $2 per share on Aug. 8 but gained it back the following day. Shares closed over $33 as recently as Sept. 14, but they lost more than $4 per share over the last two weeks. During the quarter, Avnet, led by CEO Rick Hamada, acquired Pepperweed Consulting to expand its services and software portfolio.
Sept. 28, 2012: $32.58
June 29, 2012: $34.49
In the third quarter, Synnex said weak consumer demand offset a stable commercial market. As a result, Synnex and CEO Kevin Murai became the third broadline distributor to post a third-quarter decrease in its stock price.
Sept. 28, 2012: $33.71
June 29, 2012: $32.81
Arrow posted less-than-expected earnings in the third quarter but still managed to show a slight uptick in its share price during that period. The Englewood, Colo.-based distributor, led by CEO Mike Long, saw its stock close as high as $37.80 on Aug. 21.
Sept. 28, 2012: $17.47
June 29, 2012: $16.83
Insight Enterprises, led by CEO Ken Lamneck, saw its stock reach its quarterly high on Sept. 14, at $19.43 per share.
Sept. 28, 2012: $32.02
June 29, 2012: $30.64
After falling below the $30 plateau in early July, ScanSource saw its stock cross the $30 plane again on Aug. 28, where it remained for the next month.
During September, CEO Mike Baur and other executives said they believe mobility is even bigger than the cloud.
Sept. 28, 2012: $10.66
June 29, 2012: $10.07
Sapient shares hovered just above and below the $10 mark for much of the quarter before staying above that mark for good on Sept. 6. The company, led by President and CEO Alan Herrick, reached a quarterly high of $10.85 on Sept. 10.
Sept. 28, 2012: $11.51
June 29, 2012: $10.62
During the quarter, PC Connection achieved Cisco Systems' Cloud Builder designation. The achievement reflects the Merrimack, N.H.-based solution provider's commitment to support the expanding role of the network in deploying cloud services, said CEO Tim McGrath in a statement. "We look forward to continuing to contribute to our customer's growth by offering them a clear path to the cloud and proving that we are their trusted provider with our dedicated cloud solutions team -- Cloud Connection."
Sept. 28, 2012: $5.88
June 29, 2012: $5.41
PC Mall shares closed at a quarter low of $5.37 on Aug. 9 and a high of $6.19 on Sept. 14. At the end of September, Kristin Rogers, executive vice president of marketing, retired after 12 years with the El Segundo, Calif.-based solution provider.
Sept. 28, 2012: $70.03
June 29, 2012: $60.09
Accenture shares increased nearly $9 per share in September, including a $2.52 jump on Sept. 6. During the quarter, longtime CTO Don Rippert joined Basho, a cloud storage and distributed database technology company.
Sept. 28, 2012: $32.21
June 29, 2012: $24.82
CSC earns the title of top-performing channel company during the third quarter. The company's shares jumped nearly $4 on Aug. 8 after reporting solid first fiscal quarter results, and they gained several more dollars before the end of the quarter too. CSC, led by CEO John Lawrie also issued a 20-cent-per-share dividend at the end of August.