They’re by no means a large group, but South Carolina’s publicly traded companies haven’t found a safe haven to escape the 2022 stock market crash.
As a group, 16 Palmetto-based companies listed on major US exchanges lost about 38{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of their value between Jan. 3 and Dec. 30. S&P 500.
This was a stark reversal from 2021, when the South Carolina public company gave investors a massive 49{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}, not including dividends. The impressive performance did not disappoint investors that year, slightly outperforming the major US indices. This is thanks to strong corporate profits and low interest rates that allow businesses to borrow cheaply.
The easy money party is over. The Federal Reserve (Fed) is removing the punch bowl and rapidly raising borrowing costs in an effort to bring inflation back to the central bank’s 2{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} target rate.
Just three South Carolina stocks — two small financial institutions and the Pee Dee packaging giant — closed out 2022 above their starting weight. The honor goes to Seneca’s Oconee Federal Savings Bank, Lexington’s First Community Bank, and Hartsville’s Sonoco Products. Their modest prize money was far from a jackpot.
The rest of the pack ended up in the red, some going deeper into the well than others.
The biggest loser was the biggest winner just one year ago. World Acceptance Corporation, which operates about 1,200 World Finance short-term loan and tax services offices in 16 states, plunged 264{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} from $240 to $66.
The plunge gained momentum in early May after the Greenville-based consumer lender posted disappointing results. Most of the time the bear is not looking back.
Coincidentally, two other companies from York County also had triple-digit hits. Rock Hill’s 3D Systems Corp. is down 198{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of his, while nearby Fort Mill’s Diversey Holdings Ltd. is down about 215{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}.
Meanwhile, Ingevity Corp., a North Charleston-based chemical researcher and manufacturer, has risen to within about $1 of its $72 2022 start.
Benefitfocus Inc. can also claim honorable mention, using what Wall Street people call a “significant event.”
Shares of the financially struggling Daniel Island software development company opened at $10.65 at the beginning of the year. The price then dropped, and on November 1st, he closed at $6.99. After that day’s closing bell, New York-based Voya Financial made his $570 million takeover offer paying Benefit Focus investors his $10.50 per share. This is an instantaneous premium of approximately 50{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}. .
The transaction is expected to close this year if investors approve it later this month. BNFT shares have held steady at around $10.45 since the deal was announced two months ago.
It was exactly that year.
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