Strong results on Main Street are translating into market-beating returns on Wall Street for consumer direct marketing companies.
Over the 12 months ended May 30, the 54 consumer DM stocks in Gruppo, Levey & Capell Inc.’s GLC Portfolio rose in value by an average of 43.3%. From June 1997 through May 1998, in contrast, the Standard & Poor’s 500 gained approximately 32%.
Three of the four consumer DM segments tracked by GLC outperformed the S&P 500, led by electronic marketers’ 70.4% gain.
Eight DM companies’ stock prices went up more than 100% during the period, including three of the 13 electronic marketers-despite a lack of profits at all but four of these 13 firms.
This quarter’s portfolio includes seven additions-Skymall, 800 Travel Systems, CDNow, Cybershop International, Sportsline USA, USA Networks (owner of Home Shopping Network) and 1-800-Contacts. Two companies, Dove Entertainment and Artistic Greetings, were dropped.-Harry Chevan, senior vice president of research at direct marketing investment firm Gruppo, Levey & Capell Inc., New York
Network
