P.A.M.'s shares do best of index

3rd quarter sees double-digit gain

Shares of P.A.M. Transportation Services of Tontitown jumped 30 percent in the third quarter, by far the best return of any Arkansas company over the past three months.

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A listing of Arkansas stocks and their performance for the third quarter of 2014.

No other Arkansas stock saw double-digit growth in the quarter.

P.A.M.'s stock closed at $36.25 Tuesday, up from $27.96 at the close of the second quarter. P.A.M. also has had the best return for the year with an increase of 75 percent.

"Despite the challenges of efficient driver and equipment utilization in their random freight segment, P.A.M.'s stock price far outperformed the broad market averages and other local stocks," said Bob Williams, senior vice president and managing director of Delta Trust Investments Inc. in Little Rock.

P.A.M. announced in May it was expanding its stock repurchase program, which was well received by stock analysts.

P.A.M. also was the best performing stock in the second quarter with a 40 percent gain.

The Arkansas Index of 17 state-based stocks closed at 343.05 Tuesday, down about 2 percent from its close of 350.94 at the close of the second quarter.

Nine of the stocks in the index had increases for the quarter, and eight lost ground.

El Dorado-based Murphy USA, the retail convenience store chain that typically locates near Wal-Mart stores, was the second-best performing stock in the third quarter with an 8.5 percent increase.

"After spinning off just over a year ago from Murphy Oil, Murphy USA shareholders were rewarded with another strong quarter," Williams said.

Windstream Holdings of Little Rock rose 8.2 percent for the quarter.

"While Windstream has pulled back from the peak that was established after the restructuring announcement, some investors see value there despite the announcement of a substantial dividend cut," Williams said.

In July, Windstream announced its plans to spin off some of its assets into a publicly-traded real estate investment trust.

Windstream has improved for the quarter, even though it reported a 65 percent decline in earnings for the second quarter.

Little Rock-based Acxiom had the worst performance of the quarter with a 24 percent decline. Acxiom shares dropped 55 percent for the year.

"Concern about continuing weakness in the global economy has plagued Acxiom's stock," Williams said. "While discussions regarding the regulatory hurdles facing the industry have quieted down, the underlying issues have yet to be addressed."

Murphy Oil of El Dorado lost 14 percent for the quarter.

"Despite spinning off Murphy USA 13 months ago, Wall Street has failed to embrace Murphy Oil's plans to pare downstream businesses and consolidate its portfolio with a primary focus on North America," Williams said.

ArcBest's stock fell 14 percent for the quarter but is still up about 11 percent for the first nine months of the year. Trucking firm ArcBest changed its name from Arkansas Best this year.

There was a surprise sell-off of ArcBest stock after it missed analysts' earnings per share projections for the second quarter, said Brad Delco, an analyst with Stephens Inc., in a recent research brief. Stephens has a buy rating on ArcBest.

The company reported revenue growth of about 14 percent for the second quarter, the second-highest increase among its less-than-truckload peers, Delco said in the report.

From the fourth quarter last year to the second quarter this year, ArcBest had the strongest tonnage growth in the business in 15 years, Delco said.

Business on 10/01/2014

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