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Tuesday, May 30, 2023

Mostly Good Year for Big Stocks on Valley 50

The largest public companies in the San Fernando Valley region enjoyed a generally good year in 2017 – ranging from single-digit losses to double-digit upticks. The overall stock market fared well during the year. The Dow Jones Industrial Average saw an increase of 25 percent, going from 19,942 at the beginning of the year to 24,719 at the end of it. Analysts credited a strengthening economy and high corporate profits, as well as the recently passed tax cuts as reasons for the strong market. Also, the tech-heavy Nasdaq index increased by 28 percent during the year, hitting record highs and closing the year at 6,903. Walt Disney Co., the Burbank entertainment giant and the region’s largest company by market capitalization, posted a share increase of just less than 2 percent last year, closing Dec. 29 at $107.51. The stock peaked in late April at $115.84. The share price took a dive to below the $100 threshold in September, following comments by Chief Executive Robert Iger that the company’s fiscal 2017 earnings would be in line with what the company brought in the previous fiscal year. The share price stayed below $100 for the next two months until rebounding on media reports that Disney was in talks to buy the media assets of 21st Century Fox. A deal was announced Dec. 14, and Disney stock has remained above $100 since then. Thousand Oaks drug maker Amgen Inc. had a 15 percent increase in its share price to close the year at $173.90. During the year, the company received approval from the Food and Drug Administration for drugs to treat secondary hyperparathyroidism, leukemia and multiple types of cancer. Public Storage, the Glendale self-storage REIT, had a 6 percent decrease in share value during 2017, closing at $209 at the end of the year. In late August, Public Storage temporarily closed 115 locations in the Houston area due to Hurricane Harvey. In September, the company had to close locations in Florida, South Carolina and Georgia from the severe weather from Hurricane Irma. The two hurricanes resulted in an aggregate $7.8 million casualty loss due to damaged buildings and equipment combined with expenses for repairs and cleanup. Avery Dennison Corp., had a 64 percent increase during the year, jumping from $70 a share to $114.86 at the end of December. During the year, the Glendale-based provider of office products and services completed three acquisitions: pressure-sensitive materials manufacturer Hanita Coatings RCA Ltd.; Finesse Medical Ltd. of Longford, Ireland, which specializes in the development of wound care and skin treatments; and Yongle Tape Co., a Chinese manufacturer of cable harnessing and insulation tapes for automakers. American Homes 4 Rent, a single-family home REIT, was also affected by Hurricane Harvey when it struck Houston. The Agoura Hills company said of the 3,200 homes it owns and rents in the Houston market, “a small number” were damaged by Hurricane Harvey to the extent that occupying them might be hazardous and would need significant remediation. Still, American Homes had a 4 percent increase in share price during the year, closing at $21.84.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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