Rising oil prices boost energy sector

Crocs falls to worst large stock, with 54.1 percent drop

By David Milstead, Rocky Mountain News (Contact)

Published June 30, 2008 at 9:05 p.m.

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A rotten June, prompted in large part by skyrocketing oil, doomed most of the major U.S. stock indexes. Colorado, with its disproportionate share of energy companies, emerged a victor.

The Bloomberg Rocky Mountain News Colorado Index rose 1.4 percent in the quarter. The slight return becomes impressive in comparison to the Standard & Poor's 500, down 3.2 percent, or the woeful Dow, down 7.4 percent.

Of the top 10 performers among larger companies, seven operate in the energy sector, led by Denver-based Kodiak Oil & Gas, which explores the Rocky Mountain region. It was up 173.1 percent.

Another top performer, Intrepid Potash, was up 105.6 percent after going public in the quarter. The Denver company is riding the worldwide agricultural boom.

Companies that cater to consumers' discretionary spending were among the hardest hit.

Crocs, which continued a string of disappointing announcements when it drastically cut its growth and profit expectations, was the worst-performing large stock of the quarter, with a drop of 54.1 percent. It was a 180 for the Niwot shoemaker, as it has twice been the best-performing Colorado stock, in the second quarter of 2007 and in the third quarter of 2006.

Movie-theater ad-seller National Cinemedia and eateries Chipotle Mexican Grill and Red Robin Gourmet Burgers also checked in near the bottom of the list.

The Rocky Mountain News tracks stock prices for all Colorado-headquartered companies, including closed-end mutual funds, that trade on a major exchange and have a market value of $10 million or more. The Rocky segments the list into larger and smaller companies, with $250 million of market capitalization as the dividing line.

Among larger companies, 35 of 55 beat the 3.2 percent drop in the S&P 500. Seven companies gained 50 percent or more, and 21 companies posted double-digit gains. Just eight companies lost 20 percent or more.

Among smaller companies, just 20 of 49 beat the S&P's mark. Two gained 50 percent or more, with a dozen in double-digit territory.

Some of the worst-performing smaller stocks - financial companies - were in the "larger" half of the pool just a quarter ago.

CoBiz Financial, the parent of Colorado Business Bank, was harmed by write-downs of loans it made in the Arizona real-estate market. It dropped 49.5 percent, and its market capitalization is now just $151 million.

Guaranty Bancorp, formerly known as Centennial Bank Holdings, didn't need to leave Colorado to get singed. Down 42.7 percent, it now has a market capitalization of $189 million.

Finance Editor David Milstead can be reached at milstead@RockyMountainNews.com or 303-954-2648.

Top 5 stocks, larger companies

1. Kodiak Oil & Gas 173.1%

2. Intrepid Potash 105.6%

3. Venoco 99.7%

4. Gasco Energy 70.1%

5. Saint Mary Land & Exploration 67.9%

Bottom 5 stocks, larger companies

1. Crocs -54.1%

2. National CineMedia -52.6%

3. Air Methods -48.3%

4. Chipotle Mexican Grill -27.2%