BJ Services Tops Performance Derby

The Scout Partners Index of Western Colorado stocks fell -0.77% while the broad market fell -0.43% in March (total return including dividends). The 25 stock index focuses on large companies whose operations have a significant impact in Western Colorado. It includes major Mesa County employers such as Wal-Mart, Halliburton, Kroger (City Market), Exxon Mobil, StarTek, CRH (United Companies), and the Union Pacific Railroad.

B.J. Services (BJS) rose +9.9% in March, following a +19.4% increase in February. The stock is up about 18% during the first quarter of 2008, while the broad market has fallen almost 10% during the same period of time.

Doug May, President of May-Investments, a Grand Junction-based registered investment advisor, noted in February that, "natural gas prices have reached their highest prices in 26 months.” May added that prices are nearing $10 per MMbtu and that, "Merrill upgraded the stock on the 17th and a couple smaller firms either upgraded the stock or raised target prices recently."

Qwest Communications (Q) was the worst performer in the index, falling -16.1% in March.

Scout Partners equal weighted index of Western Colorado Stocks is comprised of 25 stocks that hope to reflect, to some degree, business conditions in Western Colorado. Reflecting the local economy, the index has a large (over 30%) concentration in the energy sector, which tends to drive index performance. The next largest sector concentration is in Industrial stocks, which comprise over 20% of the portfolio. Local stocks are up +3.5% over the past 12 months while the overall market has fallen -5.1% over the same time period.

Douglas B. May, CFA, is President of May-Investments, LLC and author of Investment Heresies.

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